Does West Virginia Tax Social Security Benefits?

No. Does West Virginia tax Social Security benefits? Starting with tax year 2026, the answer is no for every resident, regardless of income. The state finished a three-year phase-out under House Bill 4880 that gradually exempted a larger share of benefits each year until reaching a full 100 percent deduction. If you filed a 2025 return and still owed some state tax on your benefits, that was the last year any portion was taxable.

How the Phase-Out Worked

West Virginia starts its income tax calculation from your federal adjusted gross income. Before 2024, the state fully exempted Social Security benefits only for residents whose federal AGI fell at or below $50,000 for single filers or $100,000 for married couples filing jointly. Anyone above those thresholds owed state tax on whatever portion the federal government counted as taxable.1West Virginia Legislature. West Virginia Code 11-21-12 – West Virginia Adjusted Gross Income of Resident Individual

House Bill 4880, passed in 2024, closed the gap for higher-income residents on a set schedule:2West Virginia Legislature. West Virginia Legislature HB 4880 Committee Substitute

  • Tax year 2024: 35 percent of federally taxable benefits could be subtracted on the state return.
  • Tax year 2025: 65 percent could be subtracted.
  • Tax year 2026 and beyond: 100 percent can be subtracted, making benefits fully exempt.

Lower-income residents already had a full exemption, so the phase-out brought everyone else to the same place. From 2026 on, no West Virginia resident pays state income tax on Social Security.3West Virginia Tax Division. Senior Citizen Social Security Modification

Which Benefits Are Covered

The exemption applies to benefits paid under Title 42, Chapter 7 of the United States Code, which includes retirement, survivor, and disability payments.1West Virginia Legislature. West Virginia Code 11-21-12 – West Virginia Adjusted Gross Income of Resident Individual Social Security Disability Insurance (SSDI) follows the same rules as retirement benefits. Survivor benefits paid to a widowed spouse or dependent children, and spousal benefits paid to a current or former spouse, are also covered. If any portion of those payments shows up in your federal AGI, the state’s full deduction removes it from your West Virginia taxable income.

Supplemental Security Income is different, but you don’t need to worry about it. SSI is a need-based program, and SSI payments are not included in federal AGI, so they never reach your West Virginia return and never need to be exempted.

Federal Tax Still Applies

The state exemption doesn’t change your federal tax bill. The federal government uses “combined income” to decide how much of your benefits to tax: your AGI (excluding Social Security), plus any tax-exempt interest, plus half of your Social Security benefits.4Social Security Administration. Must I Pay Taxes on Social Security Benefits?

For single filers:5Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits

  • Below $25,000: none of your benefits are taxable.
  • $25,000 to $34,000: up to 50 percent may be taxable.
  • Above $34,000: up to 85 percent may be taxable.

For married couples filing jointly:5Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits

  • Below $32,000: none of your benefits are taxable.
  • $32,000 to $44,000: up to 50 percent may be taxable.
  • Above $44,000: up to 85 percent may be taxable.

These federal thresholds are not indexed to inflation, so more retirees cross them each year as cost-of-living increases push benefits upward. If your combined income stays below the applicable threshold, nothing is federally taxable and West Virginia’s exemption has no practical effect on your return.

Claiming the Exemption on Your Return

The deduction is not automatic. You claim it on West Virginia Schedule M, filed with Form IT-140. The Social Security modification goes on Line 34 of Schedule M.6West Virginia Tax Division. West Virginia Schedule M – Modifications to Adjusted Gross Income

You’ll need Form SSA-1099, which the Social Security Administration mails each January for the prior tax year. Box 5 of that form shows your net benefits.7Internal Revenue Service. Social Security Income Then look at how much of that amount was included as taxable income on your federal return. For a 2026 return, you enter that full federally taxable amount on Line 34 of Schedule M as a subtraction, which zeroes out the state tax on those benefits. The subtraction carries over to your IT-140 and reduces your West Virginia taxable income.

If you’re filing or amending a 2024 or 2025 return, the partial percentages still apply: 35 percent for 2024 and 65 percent for 2025 on the portion above the $50,000/$100,000 thresholds. Check the Schedule M instructions for the specific year.3West Virginia Tax Division. Senior Citizen Social Security Modification

Other Retirement Income Is Still Taxed

The exemption covers Social Security and nothing else. Required minimum distributions from traditional IRAs and employer retirement plans are included in your federal AGI and flow through to your West Virginia return as ordinary taxable income.8Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs Most account holders must begin RMDs in the year they turn 73.

Large retirement withdrawals can also raise your federal combined income enough to push more of your Social Security into the federally taxable range. The West Virginia exemption still removes those benefits from your state return, but your federal tax bill may climb.