The Good News: West Virginia Drops the Tax in 2026

If you live in the Mountain State, relief is here. West Virginia has been aggressively phasing out its tax on Social Security benefits over the last few years. The phase-out schedule was designed to gradually reduce the burden on retirees:

• 2024: 35% deduction allowed.
• 2025: 65% deduction allowed.
• 2026: 100% deduction (fully exempt).

This means that for the tax year 2026 (the return you will file in early 2027), you will pay zero state income tax on your Social Security benefits in West Virginia, regardless of your income level. This move makes West Virginia significantly more attractive to retirees comparing it to neighbors like Virginia or Maryland.