Is My Retirement Income Taxable to West Virginia?

Whether your retirement income is taxable in West Virginia depends on the type of retirement benefit you receive. West Virginia provides several retirement income exclusions and exemptions that can significantly reduce or eliminate state tax on retirement benefits. 

Retirement Income Eligible for a $2,000 Subtraction

West Virginia allows a subtraction of up to $2,000 for retirement income received from:

• West Virginia Teachers' Retirement System
• West Virginia Public Employees' Retirement System (PERS)
• Federal Retirement Systems

The combined subtraction for these retirement systems cannot exceed $2,000 per return.

Retirement Income That Is Fully Exempt from West Virginia Tax

West Virginia does not tax retirement income received from the following sources:

• West Virginia State Police Retirement
• Local Police Retirement
• Deputy Sheriffs' Retirement
• Firemen's Retirement
• Federal Law Enforcement Retirement
• Military Retirement
• Survivorship Annuities associated with these retirement systems
• U.S. Railroad Retirement benefits 

What About Social Security Benefits?

For the 2026 tax year, 100% of Social Security benefits included in federal adjusted gross income may be subtracted from West Virginia income. This means Social Security benefits are not subject to West Virginia income tax. 

How Do I Enter the Retirement Income Subtraction in the Program?

To enter or review your West Virginia retirement income subtraction:

1. Go to the State section.
2. Click the three dots (⋯) next to West Virginia and select Edit.
3. Choose Subtractions from Income.
4. Review and enter the appropriate retirement income information. 

Quick Reference

For most retirement-related adjustments, you'll make the entry under State → West Virginia → Subtractions from Income.