Retirement Taxes Will Be Less Painful for Seniors in This State Next Year
Key Points
West Virginia began phasing out its state Social Security benefit tax in 2022.
As of 2026, no West Virginians will owe state taxes on their checks.
Some high earners within the state could owe taxes on up to 35% of their benefits this filing season.
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No one loves taxes, but they can be especially stressful if you're retired because you're probably living on a fixed income. A surprise bill could leave you struggling to pay for other essential expenses and may even drive you into debt.
Fortunately, for residents of one state, this filing season will be the last time they have to deal with one bothersome tax.
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West Virginia has eliminated its state Social Security benefit tax
State Social Security benefit taxes have become increasingly unpopular, leading many states that had them to gradually start phasing them out. West Virginia began this process in 2022, when all single filers with adjusted gross incomes (AGIs) under $50,000 and married couples with AGIs under $100,000 were exempt from this tax.
Beginning in 2024, the state began exempting a portion of Social Security benefits from state taxation for those with incomes over the above thresholds. As of 2026, no West Virginia residents will owe a state Social Security benefit tax.
However, we haven't finished the 2025 filing season yet. If your AGI is higher than the limit above for your filing status, you could owe a state benefit tax on 35% of your Social Security checks when you file your 2025 return.
You could also owe federal Social Security benefit taxes. Unlike the taxes at the state level, federal benefit taxes appear as though they'll stick around for the long haul.
If you're concerned about how much you might owe, speak to an accountant. They should be able to advise you on how the law change will affect you.
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