1. West Virginia: Phasing Out the Social Security Income Tax
West Virginia enacted House Bill 4880 to completely eliminate state personal income taxes on Social Security benefits. This legislation establishes a structured multi-year phase-out that benefits all income brackets.
The state implemented an initial 35 percent exemption in 2024, which expanded to 65 percent in 2025. By tax year 2026, retirees enjoy a full 100 percent tax exemption on their benefits.
Previous state statutes placed restrictive income caps at $50,000 for single filers and $100,000 for married couples. The new law permanently removes those thresholds, allowing middle- and higher-income retirees to keep their benefits intact.
This sweeping reform saves West Virginia seniors tens of millions of dollars collectively each year. It also establishes the Mountain State as an attractive destination for budget-conscious pre-retirees.
You can now plan your retirement withdrawals in West Virginia without calculating state tax liability on your federal checks. That predictability allows you to allocate more funds toward healthcare and leisure activities.
