How West Virginia taxes retirement income
West Virginia does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Social Security is 100% exempt from West Virginia income tax for tax year 2026 and beyond (fully phased in by HB 4880, 2024 Regular Session, which set the decreasing modification at 35% for TY2024, 65% for TY2025, and 100% for TY2026 and after, for all filers regardless of income). Pension income is subject to income tax except for certain retirement plan distributions (e.g., military and some government pensions have separate exclusions). 401k/IRA withdrawals are taxed at ordinary rates.
Retirement income tax in West Virginia, at a glance
| Income type | Taxed by West Virginia? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.51% of home value |
Does West Virginia tax Social Security benefits?
No. West Virginia does not tax Social Security benefits.
Does West Virginia tax pensions and 401(k) or IRA withdrawals?
Partly. Social Security is 100% exempt from West Virginia income tax for tax year 2026 and beyond (fully phased in by HB 4880, 2024 Regular Session, which set the decreasing modification at 35% for TY2024, 65% for TY2025, and 100% for TY2026 and after, for all filers regardless of income). Pension income is subject to income tax except for certain retirement plan distributions (e.g., military and some government pensions have separate exclusions). 401k/IRA withdrawals are taxed at ordinary rates.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- West Virginia taxation of retirement income (Social Security, pensions, 401(k)/IRA): West Virginia Department of Revenue / Taxation.