- West Virginia has a graduated income tax system with five brackets. Rates range from 3 percent to 6.5 percent. Non-residents of the state can be taxed on West Virginia source income. Generally, income is sourced to West Virginia if it arises from property in the state or from services performed in the state. West Virginia has reciprocity agreements with other states to prevent double taxation.
- Corporations doing business in West Virginia are taxed on their net income according to a graduated scale. Businesses that expect a net income of at least $10,000 in West Virginia source taxable income must pay quarterly estimated taxes. Up to $300,000 can be carried back each year in which a net operating loss is incurred.
- A franchise tax is levied on entities doing business in West Virginia if they are not taxable as corporations under federal tax laws. It is designed for partnerships, limited-liability companies and other unincorporated associations. The rules are similar (although not identical) to those applicable to West Virginia's corporate income tax.
- Property tax is levied on real property in West Virginia. It must be paid to the government of the county that contains the property. Failure to pay this tax can result in the placement of a lien against the property, and eventual foreclosure.
- West Virginia imposes two types of sales taxes--a consumer sales and service tax, and a use tax. Both carry a rate of 6 percent. Human food products (other than prepared food) are taxed at 3 percent. Both of these taxes are paid by purchasers of goods or services. Consumer sales and service tax is collected by vendors at the point of sale.
