Data Source and Methodology
Authoritative data: West Virginia Tax Division — Employer’s Withholding Tax Tables (Form WV/IT-100), effective Jan 1, 2024. See: West Virginia Tax Division resources and the current WV/IT-100 PDF.
All calculations strictly follow the formulas and data provided by this source. Minor rounding may apply. This tool models state personal income tax brackets only; it does not apply credits, exemptions, or special adjustments.
The Formula Explained
1) Pre-tax deductions:
Taxable income = $ T = \max\!\big(0,\; G - (r \cdot G) - H \big) $
where $ G $ = annual gross income, $ r $ = retirement contribution rate (decimal), $ H $ = annual pre-tax health premiums.
2) West Virginia tax (piecewise, 2024+):
$ \text{WVTax}(T) = \begin{cases} 0.0236 \cdot T & 0 \le T \le 10{,}000 \\ 236 + 0.0315 \cdot (T - 10{,}000) & 10{,}000 < T \le 25{,}000 \\ 708.5 + 0.0354 \cdot (T - 25{,}000) & 25{,}000 < T \le 40{,}000 \\ 1{,}239.5 + 0.0472 \cdot (T - 40{,}000) & 40{,}000 < T \le 60{,}000 \\ 2{,}183.5 + 0.0512 \cdot (T - 60{,}000) & T > 60{,}000 \end{cases} $
Effective rate: $ \text{ER} = \dfrac{\text{WVTax}(T)}{T} $ ; Marginal rate is the bracket rate at your $ T $.
Per-paycheck estimate: $ \text{Tax}_{\text{per pay}} = \dfrac{\text{WVTax}(T)}{N} $ where $ N \in \{12, 24, 26, 52\} $ or annual-only.
Glossary of Variables
- Annual gross income (G): Total wages/salary before deductions.
- Retirement contribution rate (r): Employee pre-tax 401(k)/403(b)/457(b) percentage as a decimal (e.g., 5% = 0.05).
- Pre-tax health premiums (H): Annual Section 125 premiums excluded from taxable wages.
- Taxable income (T): Income subject to WV state tax after pre-tax deductions.
- WV state tax: Estimated tax calculated from the WV brackets.
- Effective rate (ER): State tax divided by taxable income.
- Marginal rate: The tax rate applied to your last dollar of taxable income (your bracket).
- Per-paycheck tax: Estimated state withholding per selected pay frequency.
How It Works: A Step-by-Step Example
Example Inputs
- Annual gross income (G): $65,000
- Retirement rate (r): 5%
- Health premiums (H): $1,200
- Pay frequency: Biweekly (26)
Calculation
- Taxable income: T = 65,000 − (0.05 × 65,000) − 1,200 = 60,050
- Bracket application:
- First $10,000 × 2.36% = $236.00
- Next $15,000 × 3.15% = $472.50
- Next $15,000 × 3.54% = $531.00
- Next $20,000 × 4.72% = $944.00
- Remainder $50 × 5.12% ≈ $2.56
- Effective rate: 2,186.06 ÷ 60,050 ≈ 3.64%
- Per paycheck: 2,186.06 ÷ 26 ≈ $84.08
Note: Totals may vary slightly due to rounding conventions in payroll systems.
Frequently Asked Questions (FAQ)
Do the brackets differ by filing status in West Virginia?
No. WV applies the same thresholds for all statuses. Status can influence credits or other adjustments not modeled here.
Are these the latest WV rates?
Yes, rates reflect the 2024–2025 period after the 2023 reduction. Always verify with the WV Tax Division for updates.
Does this include federal taxes or other payroll items?
No. This focuses on WV state personal income tax only. Federal tax, FICA, Medicare, and other deductions are not included.
Why is my paycheck withholding different?
Employers use withholding methods and forms (e.g., WV/IT-104) that approximate annual tax across pay periods and consider allowances or credits. Estimates here are educational.
Can I input a fixed retirement dollar amount?
This version supports a percentage of gross for retirement and a fixed annual amount for health premiums. Converting a fixed retirement amount to a percentage is a simple workaround.
How accurate is the marginal rate?
Marginal rate is the statutory rate for the bracket that contains your last taxable dollar. It helps you understand how an additional dollar is taxed.
Is there a local (city/county) income tax in WV?
No distinct local income tax is applied. This tool computes state personal income tax only.