Budget & Taxes (Income Tax)

in committee · West Virginia · House of Delegates Feb 3, 2026

HB 5078: Related to child tax credit

HB 5078 creates a refundable state child tax credit for West Virginia residents who claim the federal child tax credit for eligible children. The credit equals 50% of the federal child and dependent care tax credit amount claimed on the federal return, directly supporting working families with children. For tax years starting January 1, 2025, any credit amount exceeding the resident's state income tax liability is refunded to the individual. This policy change expands state support for families already qualifying for the federal credit, aiming to reduce child poverty and bolster local economies.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for families, providing direct tax relief and refunding excess credit amounts to lower/middle income households.95% confidence

Sub-Topics Income Tax Tax Credits Tags Children

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in committee · West Virginia · House of Delegates Feb 16, 2026

HB 5544: Creating deductions for contributions to Trump accounts

HB 5544 would allow West Virginia residents to deduct contributions to "Trump Accounts" for qualifying dependent children when calculating state income tax. The deduction applies only to children born between 2025 and 2028, who are U.S. citizens with no prior election under this provision, with a maximum annual deduction of $1,000 for single filers or $2,000 for married couples filing jointly. Contributions to these accounts would be tax-exempt until withdrawn, and earnings within the account would not be subject to West Virginia income tax. The bill defines "Trump Accounts" using references to fictional federal tax provisions (26 U.S. Code § 6434 and Section 530A of the Internal Revenue Code), though these do not exist in actual law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for contributions to 'Trump Accounts,' providing tax relief for families with qualifying children, aligning with support indicators.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · House of Delegates Feb 16, 2026

HB 5627: To provide for a $100 tax credit per election for service by an election official to West Virginia Personal income tax liabilities.

HB 5627 creates a $100 nonrefundable personal income tax credit per election for West Virginia election officials who serve at least half a day during an election. The credit is capped at $200 per taxable year and must be used in the year it's earned - unused credits cannot carry forward. To claim the credit, officials must obtain certification from their county commission documenting their service, which is then submitted to the Tax Commission and Secretary of State. The bill requires the Secretary of State to submit biennial reports evaluating the credit's cost-effectiveness starting in 2031. It becomes effective for tax years beginning after December 31, 2028.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for election officials, reducing their tax liability as direct fiscal support for public service roles.90% confidence

Sub-Topics Income Tax Tax Credits Tags Elections

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in committee · West Virginia · Senate Jan 16, 2026

SB 460: Establishing no tax on tips or overtime compensation

SB 460 would exempt tips and overtime compensation from West Virginia's personal income tax. This means workers earning tips (such as in restaurants) or overtime pay (for hours beyond 40 in a week) would not owe state income tax on those earnings. Employers would still be required to report these payments as part of their tax filings, but the state would not tax them. The bill directly affects all West Virginia workers who receive tips or overtime compensation, including service industry employees and hourly workers.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts tips/overtime from state income tax, providing tax relief for service workers and overtime earners, aligning with support indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts tips/overtime from state tax, increasing take-home pay for workers and directly supporting wage benefits under Labor & Employment policies.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax Labor Standards

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in committee · West Virginia · Senate Jan 15, 2026

SB 405: Relating to nonresident income tax for natural resources royalty payments received from lessees

This bill requires companies (lessees) that pay mineral royalty payments (e.g., for coal, oil, or gas) to nonresident owners (lessors) to withhold West Virginia income tax from those payments. Lessees must withhold tax on annual payments exceeding $1,000, remit the withheld amount to the state, and provide annual statements to the nonresident lessors. Nonresident owners will be credited for the withheld tax against their state tax liability and can receive refunds for overpayments. The law aims to ensure nonresident mineral rights owners pay taxes on income earned from West Virginia resources, closing a revenue gap identified by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires withholding income tax on mineral royalty payments, increasing state tax revenue collection from nonresident owners.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · House of Delegates Jan 28, 2026

HB 4883: Abolish the tax on overtime pay

HB 4883 would exempt overtime pay from West Virginia's personal income tax. Currently, workers pay state income tax on overtime earnings, but this bill would remove that tax obligation. The provision applies directly to all West Virginia employees who earn overtime pay under state labor laws. This change would increase take-home pay for affected workers by eliminating the tax on overtime hours.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts overtime from state income tax, providing direct tax relief to workers and aligning with 'provides tax relief' indicator.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts overtime pay from state income tax, directly increasing take-home pay for workers and strengthening wage benefits under Labor & Employment policies.95% confidence

Sub-Topics Business Taxes Income Tax Labor Standards

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in committee · West Virginia · House of Delegates Jan 19, 2026

HB 4507: Relating to allowing a personal income tax exemption for First Responders

HB 4507 would exempt the salaries of certain first responders from West Virginia's state personal income tax. It directly affects law enforcement officers, paid firefighters, correctional officers, and emergency medical services (EMS) personnel as defined in existing state law. The bill adds a new provision to the tax code stating these workers' salaries are not subject to state income tax. This change applies only to their earned income from these specific roles, not other income they may receive.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first responders' salaries from state income tax, providing direct tax relief for middle-income public safety workers.95% confidence ✓ Criminal JusticeSupports Criminal JusticeProvides tax exemption for law enforcement and correctional officers, directly funding their salaries to support workforce retention in criminal justice system.80% confidence

Sub-Topics Income Tax Tax Incentives Law Enforcement Tags Public Safety

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signed · West Virginia · Senate Jun 25, 2026

SB 392: Relating to personal income tax reduction

SB 392 reduces West Virginia's personal income tax rates for taxpayers starting January 1, 2026, with automatic future reductions tied to state revenue growth. The bill requires the Secretary of Revenue to calculate annual tax rate cuts when state revenue exceeds inflation-adjusted 2019 levels (base year: $4.29 billion), applying the reduction equally across all tax brackets. These reductions cannot exceed a 10% cut in existing rates and will be certified annually after August 15 each year. The bill also lowers withholding rates on nonresident real estate sales, lottery winnings, and certain composite returns. This legislation directly affects all West Virginia income tax filers and nonresidents earning income within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces personal income tax rates across all brackets with revenue-linked automatic cuts, providing tax relief and promoting fiscal responsibility through structured tax reduction.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

in committee · West Virginia · Senate Jan 19, 2026

SB 492: Establishing additional modification reducing federal adjusted gross income relating to taxes on tips and overtime

SB 492 creates a new tax deduction for West Virginia residents, reducing their taxable income based on federal deductions for qualified tips and overtime pay. For tax years 2026-2028, it allows a deduction equal to federal tip and overtime deductions claimed on federal returns. Starting in 2029, it limits the deduction to $25,000 annually for tips and $12,500 for overtime, phasing out for taxpayers with modified adjusted gross income over $150,000. Nonresidents can only claim deductions for work performed in West Virginia. The bill directly affects service industry workers and overtime earners who itemize federal deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for tips/overtime, reducing taxable income for middle-income earners with phase-outs above $150k, providing targeted tax relief.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · Senate Jan 14, 2026

SB 120: Eliminating income tax on qualified tipped wages

SB 120 would allow West Virginia residents who receive tips in their job (such as servers or bartenders) to deduct those tips from their state income tax. The bill defines "qualified tips" as cash, credit card, or check tips reported to an employer, and creates a state tax deduction for these amounts. This deduction would lower taxable income for state tax purposes but only applies to tips not already deductible under federal tax rules. The change would take effect for tax years beginning January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for tipped workers, reducing state tax burden for lower/middle-income earners95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentDeducting tips from taxable income increases take-home pay for tipped workers, directly supporting their financial well-being within Labor & Employment policies.92% confidence

Sub-Topics Income Tax Minimum Wage

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