West Virginia has a graduated state individual income tax, with rates ranging from 2.11 percent to 4.58 percent. West Virginia has a flat 6.50 percent corporate income tax rate, a 6.00 percent state sales tax rate, and an average combined state and local sales tax rate of 6.59 percent. West Virginia has a 0.51 percent effective property tax rate on owner-occupied housing value. West Virginia does not have an estate tax or inheritance tax. West Virginia’s gas tax is 35.7 cents per gallon, and its cigarette excise tax is $1.20 per pack of 20 cigarettes.
West Virginia raises tax revenue primarily through other taxes (30.7 percent of total state and local tax revenue), individual income taxes (26.6 percent), and property taxes (19.4 percent). West Virginia collects $5,710 in state and local tax collections per capita, carries $13,438 in state and local debt per capita, and has a 100 percent funded ratio of public pension plans. West Virginia’s tax system ranks 32nd overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and West Virginia is no exception. Use the tabs below to compare West Virginia taxes with other states and to see how West Virginia raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
Get facts about taxes in your state and around the US
The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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Many policies, such as minimum wage levels, tax brackets, and means-tested public benefit income thresholds, are denominated in nominal dollars, even though a dollar in one region may go much further than a dollar in another. Lawmakers should keep that reality in mind as they make changes to tax and economic policies.
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Public Law 86-272’s vague language, limited scope, and failure to evolve with modern commerce has rendered it increasingly ineffective, burdening businesses with heightened litigation and compliance challenges.
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Some state lawmakers are considering decoupling from the pro-growth expensing provisions of the OBBBA due to revenue concerns, but it is valuable to recognize just how much the corporate tax base has expanded over the past decade.
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Cigarette tax avoidance costs states billions in forgone tax revenue and necessitates additional spending on enforcement of the ineffective policies.
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Tobacco is the most highly taxed consumer product in the United States. The tools on this page allow you to explore state tax rates and the effects tax policy and tobacco regulations can have on state revenues, smuggling, and effective tax rates for different income groups.
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In the spirit of change and improvement, it’s worth looking back to see which states have truly embraced tax competitiveness since 2020, and which ones have lagged behind.
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
Taxes are an important part of the mix, and modernizing a state’s tax structure helps position it for growth. States that rank better on the Index have better-structured tax codes, and states with better-structured tax codes get Wins Above Replacement.
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