Owning rental property in West Virginia means paying as many as five separate taxes, and which ones apply turns on whether you rent long-term, short-term, or both. Long-term landlords owe property tax at the higher Class III or Class IV levy rate, state income tax on net rental profit, and in roughly half the state’s municipalities a business and occupation (B&O) tax on gross rents. Short-term hosts owe all of that plus the 6% state sales tax and a local hotel occupancy tax on every stay of 30 days or less. Miss a deadline and the penalty starts at 5% per month, so the sequencing matters as much as the rates.
Property Tax Jumps When You Stop Living There
The biggest recurring cost for most landlords is property tax, and rental owners pay roughly double what owner-occupants pay on the same building. West Virginia sorts property into four classes for levy purposes. An owner-occupied home sits in Class II at the lowest rate. A rental you don’t live in moves to Class III if it’s outside municipal limits or Class IV if inside a city, both carrying levy rates about twice Class II.1West Virginia Tax Division. Property Tax Classifications The reclassification is automatic once the property stops being your primary residence, and your bill can climb sharply with no change in appraised value.
Property tax is paid in two installments. The first half is due September 1 and the second half March 1 of the following year. Paying each installment early earns a 2.5% discount on that half.2West Virginia Tax Division. Property Tax Due Dates For a landlord with steady cash flow, that discount is money most people leave on the table.
Municipal B&O Tax on Gross Rents
About half of West Virginia’s 234 municipalities impose a B&O tax on businesses operating inside city limits, and rental income counts as a business activity.3West Virginia Tax Division. Short-Term Leases and Rentals of Real Property It applies to gross receipts before any deduction for repairs, mortgage interest, or management fees. The authority sits in West Virginia Code 8-13-5, which gives municipalities broad power to tax business privileges within their boundaries.4West Virginia Legislature. West Virginia Code 8-13-5 – Business and Occupation or Privilege Tax
Rates and categories differ by city. Many cities set a specific “furnishing property for hire” classification for rentals. Beckley taxes that activity at 1% of gross rental receipts.5City of Beckley. B&O Tax Wheeling charges $0.73 per $100 of gross income, or 0.73%.6City of Wheeling, West Virginia. Taxes and Fees If your property sits inside a municipality, call the city clerk or check the city website to confirm whether a B&O tax applies, which classification covers your rental, and what rate you owe.
Before any of that matters, confirm whether the property is actually inside municipal limits. The state’s Property Viewer at mapwv.gov/Parcel lets you search any parcel by address or owner across all 55 counties, though the Tax Division points to the county assessor’s office as the most authoritative source for boundaries.7WV Property Assessment. WV Property Assessment Property outside city limits owes no B&O tax but may still owe county hotel occupancy tax if used for short stays.
Sales Tax on Rentals of 30 Days or Less
Any rental of real property for 30 consecutive days or less is treated as taxable lodging and carries the 6% state consumers sales and service tax.8West Virginia Legislature. West Virginia Code 11-15-3 – Amount of Tax Vacation cabins, Airbnb listings, and any other short-stay arrangement all qualify. A standard residential lease of a month or longer is not subject to sales tax at all.9West Virginia Tax Division. Sales and Use Tax for Lodging Rentals
Municipalities that impose a local sales and use tax can add roughly 1% on top, so a short-term guest typically sees about 7% in sales tax before any occupancy tax lands on the bill.
When a Short Stay Becomes Exempt
If a guest books a daily or weekly rate but ends up staying past 30 consecutive days, the entire rental period becomes exempt from sales tax, not just the nights after day 30. Guests who already paid sales tax on a stay that stretched past the threshold can apply to the Tax Division for a refund.9West Virginia Tax Division. Sales and Use Tax for Lodging Rentals Worth mentioning to guests planning long stays.
Registering With the State
Before collecting sales tax you need a West Virginia business registration certificate. Apply online through the Business for West Virginia portal or file a paper BUS-APP form.10West Virginia Tax Division. Business Registration The form has a “Rental” checkbox under general business activity that covers short-term lodging.11West Virginia State Tax Department. West Virginia New Business Registration Application Once registered, you collect sales tax from guests and remit it on Form CST-200CU, which most filers submit monthly.
Hotel Occupancy Tax
Separate from sales tax, most jurisdictions impose a hotel occupancy tax on short stays. Two statutes authorize it: counties tax hotels and short-term rentals outside municipal limits under West Virginia Code 7-18-1, while cities tax properties inside their limits under West Virginia Code 8-13-3.12West Virginia Legislature. West Virginia Code 7-18-1 – Hotel Occupancy Tax A county cannot tax a property inside a city that already levies its own occupancy tax.
Rates run from 3% to 6%. Many larger jurisdictions charge the full 6%, including Kanawha, Monongalia, and Raleigh counties and the cities of Charleston, Morgantown, and Beckley. Smaller municipalities like Whitesville, Burnsville, and Keyser charge 3%, and a few impose nothing at all.13West Virginia Tax Division. Hotel Occupancy Tax
The exemption threshold is not the same as sales tax. Sales tax drops off after 30 consecutive days; the municipal hotel occupancy tax doesn’t exempt a guest until 90 or more consecutive days.14West Virginia Legislature. West Virginia Code 8-13-3 – Hotel Occupancy Tax A 45-day guest is exempt from sales tax but still owes occupancy tax. That gap catches landlords regularly.
Stack the numbers for a short-term rental in a 6% occupancy-tax jurisdiction: 6% state sales tax, roughly 1% municipal sales tax, and 6% hotel occupancy tax add up to about 13% in taxes on the guest’s bill. In a 3% occupancy area the total sits closer to 10%. Those taxes are collected from the guest and held in trust until you remit them.
When Airbnb Collects for You
If you list on Airbnb, the platform automatically collects and remits the 6% state sales tax, the municipal sales and use tax, and all locally imposed hotel occupancy taxes on reservations of 30 nights or shorter in West Virginia.15Airbnb. Occupancy Tax Collection and Remittance by Airbnb in West Virginia You do not separately charge or remit those taxes on platform bookings. You still need a business registration certificate, you still owe B&O tax to your municipality where applicable, and you still owe income tax on your profits. For any direct bookings outside the platform, you collect and remit everything yourself.
State Income Tax on Net Rental Profit
Net rental profit flows into your West Virginia personal income tax return the same way it does federally. Start with gross rent, subtract allowable expenses like mortgage interest, depreciation, repairs, and insurance, and report the result. West Virginia builds on federal adjusted gross income, so the net figure from your federal Schedule E carries directly onto Form IT-140.16West Virginia Tax Division. West Virginia Personal Income Tax Forms and Instructions
For 2026, the graduated brackets top out at 4.58% on taxable income over $60,000 for both single filers and married couples filing jointly.17West Virginia Tax Division. 2026 Income Tax Rate Cut The full schedule:
- Up to $10,000: 2.11%
- $10,001 to $25,000: $211 plus 2.81% of the amount over $10,000
- $25,001 to $40,000: $632.50 plus 3.16% of the amount over $25,000
- $40,001 to $60,000: $1,106.50 plus 4.22% of the amount over $40,000
- Over $60,000: $1,950.50 plus 4.58% of the amount over $60,000
Personal Property Tax on Furnishings
Furniture, appliances, bedding, and other tangible personal property you provide in a rental must be reported separately for personal property tax. This surprises many landlords, especially those running furnished short-term units. Items go on the Commercial Business Property Return (Form STC 12:32C), filed with your county assessor by September 1 each year, based on what you own as of July 1.18Boone County Assessor. Business Personal Property Return
List each item by the calendar year you bought it and its original cost. Items listed by purchase year get the benefit of depreciation schedules that drop the taxable value over time. Skip the purchase year and the assessor treats everything as new at full value. Fully depreciated items you’ve already written off for income tax still have to appear. If you don’t file, the assessor can prepare an estimated return for you and tack on a penalty between $25 and $100.
Deadlines and What Late Costs
West Virginia layers penalties and interest in ways that add up fast. The key due dates to track:
- Personal income tax (IT-140): April 15, 2026, for tax year 2025.19West Virginia Tax Division. Tax Calendar
- Sales and use tax (CST-200CU): monthly, covering the prior month’s collections.
- Property tax: first half September 1, second half March 1.2West Virginia Tax Division. Property Tax Due Dates
- Personal property return (STC 12:32C): September 1, covering items owned as of July 1.
- Municipal B&O tax: varies by city; check your local ordinance for quarterly or annual schedules.
A late-filed return carries a penalty of 5% per month of the tax due, capped at 25%. A separate late-payment penalty of 0.5% per month applies when you file on time but underpay, also capped at 25%. Both can run at once, though combined they cannot exceed 5% per month or 50% overall.20West Virginia Tax Division. How Interest and Additions to Tax Are Assessed Interest on underpayments runs at 11.5% annually for 2026, accruing daily from the original due date until payment clears. A fraudulent return draws a flat 50% penalty that cannot be waived. Ordinary late-filing or late-payment penalties can be waived for reasonable cause not involving willful neglect.
State-level filings and payments go through the MyTaxes portal at mytaxes.wvtax.gov, including sales and use tax, income tax, and hotel occupancy tax.21West Virginia Tax Division. West Virginia Tax Division Municipal B&O tax usually runs on its own track. Some cities take payment through their own portals; others want a mailed form and check to the clerk’s office. Keep state and municipal deadlines on separate calendars because they rarely align.
Records You Need to Keep
West Virginia requires you to keep records supporting every filed return for as long as that return remains open to audit. The general audit window is three years from the filing date, with early returns treated as filed on the due date.22West Virginia Tax Division. Audits A fraudulent return or a failure to file leaves the window open indefinitely.
Short-term operators should keep a record of every guest stay, nights booked, nightly rate, and taxes collected. Long-term landlords should hold onto lease agreements, rent receipts, expense invoices, and depreciation schedules. Three years is the floor; five gives you cushion if anything on a return triggers questions that extend the review.