Taxation in West Virginia

Updated on Tuesday 21st May 2019

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West Virginia is among the American states that have an attractive tax regime meant to attract investors in varied sectors. For example, the personal income tax ranges from 3% to 6.50%, depending on the taxable incomes of individuals living in West Virginia. We invite you to talk to our team of company incorporation in USA agents and find out complete details about the ways in which a business can be started in West Virginia and also about the tax structure applicable in this state.

What is the corporate income tax rate in West Virginia?

The corporate income tax for companies in West Virginia is a flat tax of 7.75% which is applicable on the gross income. Sole proprietorships, S corporations and partnerships are among the business entities for which the income tax does not apply. On the other hand, C corporations are the type of companies subject to the corporate income tax in West Virginia. It is important to know that besides this tax, the personal incomes of business owners in West Virginia is subject to a bracketed income tax, being subject to double taxation which eventually is regulated through personal tax returns. It’s good to know that the registration and the tax filings are made with the West Virginia Department of Revenues, the authority that oversees the tax structure in this state. If you would like to know more about the taxes you need to pay for your business, you may talk to our company incorporation agents in USA. The same team can help you start a business in USA, including in West Virginia.

What is the sales tax in West Virginia?

Most of the purchases in West Virginia are subject to a standard sales tax of 6%. Tangible personal properties and company services in West Virginia are subject to the use tax which is a substitute tax imposed for consumer sales in the cases the sales tax has not been paid. Such a tax is established at the same rate as the sales tax, mentioning that local sales taxes not exceeding 1% can be collected by different municipalities in West Virginia

Is there an inheritance tax in West Virginia?

No, there is no need to consider the inheritance tax in West Virginia. The same thing is available for the estate tax, as it doesn’t apply in this state.

The personal income tax in West Virginia

Personal incomes are taxed at five different brackets as follows in the table below:
Taxable income   Tax rates
Starting from 0 to $10,000 3%
Between $10,001 and $25,000 4%
Between $25,001 and $40,000  4.5%
Between $40,001 and $60,000  6%
For more than $60,000    6.5%
For additional information about the personal income tax in West Virginia and the ways it is imposed, we invite you to address your inquiries to our team of company formation representatives in USA. Our team is at your disposal if you would like to open a company in USA and establish a business presence in West Virginia. In addition, you can read the general guide to company formation in West Virginia and have an idea about the ways in which the business is done in this state.

Other tax facts in West Virginia

Real and personal properties in West Virginia are subject to a tax rate of 0.59%, the seventh lowest rate in USA. There are also sales tax exemptions in West Virginia and these are applied for personal and professional services, child care services and other related. West Virginia Gas Tax, West Virginia Alcohol Tax, and West Virginia Cigarette Tax should be considered at the time you intend to start a business in this American state. Another important tax fact refers to Nexus. This means that if your company in West Virginia has subsidiaries/branches in other American states, that generate money in West Virginia, such companies are subject to taxation in those states. This is known as Nexus, and it is quite important to pay attention in this direction if you would like to develop your company in other states too. This means that you will have to solicit information about the taxation structure in those states and align with the applicable requirements. Known as the largest coal exporter in USA and the second largest producer of this kind of fuel, West Virginia welcomes investors in the mining industry where specific tax exemptions might apply.

If you would like to know more about the taxation Regime in West Virginia, we invite you to contact our team of company formation representatives in USA. Support is provided for company formation in USA, including West Virginia.