Does West Virginia Tax Retirement Income?

No. West Virginia does not tax Social Security benefits.

Federally taxable Social Security is subtracted in full on the 2026 West Virginia return. Filers with federal AGI of $50,000 or less ($100,000 joint) already had a 100% modification; those above the line could subtract 35% in 2024 and 65% in 2025, and reach 100% in tax year 2026 under W. Va. Code section 11-21-12(c)(8).

The West Virginia answer is separate from the federal one. Depending on combined income, up to 85% of Social Security benefits can be taxable on the federal return regardless of what West Virginia does, so the state rule changes the state line only. Our guide to states that do not tax Social Security shows where West Virginia sits among the states that still tax benefits.

Partly. West Virginia taxes some pension income, subject to an exclusion or age rule.

Private pensions are fully taxable. West Virginia Public Employees Retirement System, Teachers Retirement System, and federal retirement benefits get a modification capped at $2,000 per person. Retirement income from West Virginia police, firefighter, State Police, and Deputy Sheriff systems is fully subtracted.

The $8,000 senior citizen modification under W. Va. Code section 11-21-12(c)(9) lets a taxpayer age 65 or older, or permanently disabled, subtract $8,000 of income from any source. It works like a floor rather than a stack: the taxpayer effectively gets the greater of $8,000 or the total of the itemized modifications (Social Security, public pensions, military), not both. A retiree with $25,000 of exempt Social Security therefore gets nothing extra from the $8,000.

Public and private pensions, annuities, and retirement-plan distributions do not always get the same treatment. The pension comparison lists which states exempt pensions broadly, partly, or only for certain plans.

Yes. West Virginia generally taxes traditional 401(k) and IRA withdrawals.

Traditional 401(k) and IRA withdrawals are taxable at the 2026 rates, which top out at 4.58% above $60,000 of taxable income. The only relief is the $8,000 senior modification, and that is reduced by other retirement modifications claimed.

Two timing points matter in West Virginia. A Roth conversion is taxable in the year it is done, and West Virginia starts from federal adjusted gross income, so a large conversion can land in a year when the state exclusion does not cover it. Qualified Roth withdrawals later are generally not taxable at either level. Required minimum distributions follow the same West Virginia rules as any other traditional-account withdrawal.

Every state page on this site runs the same retiree profile so the states can be compared: $30,000 of Social Security, $40,000 withdrawn from a traditional 401(k), and a $20,000 private pension, $90,000 in total.

A single 68-year-old with $30,000 of Social Security, $40,000 from a 401(k), and a $20,000 private pension has federal AGI of about $85,500. West Virginia subtracts the full $25,500 of taxable Social Security in 2026, which also absorbs the $8,000 senior modification, leaving $60,000 of pension and 401(k) income. After the personal exemption, West Virginia tax is roughly $1,900.

Start with federal AGI of $85,500. Because 2026 is the first year the 100% Social Security modification applies to a filer with AGI over $50,000, the whole $25,500 of taxable benefits comes off; the $8,000 senior modification adds nothing because it is reduced by the Social Security amount already claimed. The private pension and 401(k) get no modification, so West Virginia income is $60,000 and, after a $2,000 personal exemption, taxable income is about $58,000. On the 2026 schedule that is $1,106.50 on the first $40,000 plus 4.22% of the next $18,000, roughly $1,900. In 2025 the same person could subtract only 65% of the Social Security, about $16,600, so 2026 saves roughly $400. Add a $150,000 traditional IRA withdrawal and taxable income rises to about $208,000, taxed at 4.58% above $60,000, for roughly $8,700 of West Virginia tax; the Social Security stays fully exempt regardless of the higher AGI.

The same $90,000 profile looks different a state line away. The rows below come from the reviewed 51-state table; each state name links to its own guide.

• Virginia: treats Social Security as exempt, pensions as partially taxed, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 5.75% and age deduction and $40,000 military subtraction.
• Pennsylvania: treats Social Security as exempt, pensions as exempt, and 401(k) and IRA withdrawals as exempt, with a top rate of 3.07% and eligible retirement distributions are exempt.
• Ohio: treats Social Security as exempt, pensions as taxed, and 401(k) and IRA withdrawals as taxed, with a top rate of 2.75% and retirement-income and senior credits may apply.

The Social Security exemption is complete, but the $8,000 senior modification is widely misread as an extra deduction on top of it. In practice it is the greater of $8,000 or your other retirement modifications, so a retiree who already subtracts $25,000 of Social Security gets no additional $8,000, and private pensions and IRA withdrawals remain fully taxable.

Military retirement: All military retirement income from the regular Armed Forces, Reserves, National Guard, and the other uniformed services is exempt from West Virginia income tax for tax years beginning on or after January 1, 2019. See the military retirement tax map for every state's treatment.

Estate and inheritance tax: West Virginia has no inheritance tax, and its estate tax is a pickup tax tied to a federal credit that no longer exists, so no West Virginia estate tax is due for current deaths. Federal estate tax can still apply.

Selling a home or investments in West Virginia: retirement-income rules do not cover capital gains. See West Virginia capital gains tax before selling appreciated property or a brokerage position in the year you move or retire.

• Confirm the exclusion you are claiming. The $8,000 senior citizen modification under W. Va. Code section 11-21-12(c)(9) lets a taxpayer age 65 or older, or permanently disabled, subtract $8,000 of income from any source. It works like a floor rather than a stack: the taxpayer effectively gets the greater of $8,000 or the total of the itemized modifications (Social Security, public pensions, military), not both. A retiree with $25,000 of exempt Social Security therefore gets nothing extra from the $8,000.
• Part-year residents. If you moved into or out of West Virginia during the year, retirement income is generally allocated to the period of residency, and the former state may still tax distributions received before the move. Document the move date, the new domicile, and where each distribution was received.
• Withholding and estimates. Pension and IRA custodians often withhold federal tax but not West Virginia tax. If West Virginia taxes any part of your retirement income, check whether quarterly estimated payments are needed to avoid an underpayment penalty.
• Federal side. The federal return has its own rules: up to 85% of Social Security can be taxable, the temporary $6,000 federal senior deduction is available for 2025 through 2028 subject to income limits, and Roth conversions are taxed in the conversion year. State exemptions do not change any of that.
• Large one-time distributions. With Social Security off the table, West Virginia tax is driven by the size of pension and account withdrawals in a given year. Spreading a large IRA distribution across two tax years keeps more of it in the 2.81% to 4.22% brackets below $60,000 instead of the 4.58% top rate.

Comparing states before a move? Use the retirement taxes by state table and the moving states tax guide, and read retirement tax planning for how distributions, conversions, and a move are sequenced together.