Does West Virginia tax Social Security benefits?

West Virginia has phased out its tax on Social Security benefits, with a full exemption in place by 2026. This calculator treats Social Security as fully exempt from WV income tax.

Are pensions taxed in West Virginia?

West Virginia and federal government pensions (including military) are fully exempt from WV income tax. Other pensions and annuities qualify for a deduction of up to about $8,000 per taxpayer; amounts above that are taxed at ordinary rates.

How are 401(k) and IRA withdrawals taxed?

Withdrawals from 401(k)s and traditional IRAs are taxed as ordinary income in West Virginia, but they can also count toward the general retirement deduction available to qualifying seniors.

Is there a senior or age-based deduction?

West Virginia offers a modified general retirement income deduction (around $8,000) that applies to non-exempt pension and retirement income for eligible taxpayers, reducing the amount subject to state tax.

What WV tax rate applies to the taxable portion?

The remaining taxable retirement income is taxed under West Virginia's graduated income tax brackets, which range from roughly 2.36% to 4.82% depending on total taxable income.

West Virginia Retirement Income Tax Calculator

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How West Virginia taxes your retirement income

West Virginia has become noticeably more retiree-friendly: Social Security is being fully exempted, government pensions are untaxed, and other retirement income gets a deduction. This calculator estimates what’s left taxable and applies WV’s graduated rates.

How it works

The calculator processes each income stream by WV’s rules:

Social Security      -> fully exempt (phased in by 2026)
Govt pension (WV/fed)-> fully exempt
Other pension + 401k -> reduced by the ~$8,000 retirement deduction
Remaining taxable    -> WV graduated brackets (2.36% - 4.82%)

Government pensions covered by the full exemption include West Virginia state and local government, federal civil service, and military retirement. A single general retirement deduction (about $8,000) is applied to the combined non-exempt pension, annuity, and IRA/401(k) income.

Example and notes

A retiree with $24,000 Social Security, a $30,000 private pension, and $12,000 in 401(k) withdrawals:

Social Security exempt:       -$24,000 (not taxed)
Non-exempt retirement income:  $42,000
Less retirement deduction:    -$8,000
Taxable in WV:                 $34,000
WV tax (graduated):            ~$1,200

Notes: if the same pension were a federal or WV government pension, the entire $30,000 would be exempt, leaving far less taxable. Roth withdrawals are generally tax-free and should be excluded. This is a planning estimate; confirm with the WV State Tax Department for your filing status.