4% personal income tax reduction announced by Governor Justice

CHARLESTON, WV (WVNS) — A four percent reduction in personal income tax rates was announced by Governor Jim Justice.

The additional reduction in personal income tax rates was announced after revenue collections in West Virginia exceeded the rate of inflation as stipulated in House Bill 2526, that Governor Justice signed in 2023.

The reduction on the income tax rates will go into effect on January 1, 2025, and will set the state on the way to get rid of personal income tax.

This is another huge achievement for West Virginia. We’ve worked hard to make sure our state’s economic growth translates to real benefits for our citizens. Nothing will drive population, opportunity, and economic growth in West Virginia like eliminating our personal income tax. Today’s announcement should absolutely be celebrated, but I know that we can achieve even more by continuing to reduce income taxes. We need to continue marching towards zero income taxes in West Virginia. I’ll only be your governor for a few more months, but I’ll always continue to do everything in my power to help this state and our people. At the end of the day, the amazing surpluses we’ve seen are great, but that money belongs to the people. They deserve to see it in their pockets, and the best way to maximize these surpluses is reducing the personal income tax.

Governor Jim Justice

Revenue collections for the 2024 Fiscal Year, without severance tax collections, reached $5.34 billion and an inflation-adjusted target of $5.24 billion. The extra amount of money led to the reduction in personal income tax rates.

Governor Justice asked the West Virginia Legislature earlier in July 2024 to think about an additional five percent personal income tax reduction at a future special session. A childcare tax credit will also be contemplated by the West Virginia Legislature.

The childcare tax credit, as well as other funding matters, were suggested during the 2024 State of the State Address by Governor Justice.

As the state succeeds, the people deserve to keep more of their money. This personal income tax trigger was put into place so as West Virginia does well economically, the people receive their share of that success. We’re creating a better environment for economic growth and opportunities across the state. The hardworking people of West Virginia truly deserve it. It is certainly a proud moment for our state, and we’re really excited about the bright future ahead.

Larry Pack | Revenue Secretary

Information can also be found on the website of the West Virginia State Tax Department.

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