CLARKSBURG, W.Va. (WBOY) — West Virginia Gov. Jim Justice has proposed a 10% cut of West Virginia’s income taxes which will be discussed in the state’s upcoming special session. But just how much would the cut benefit West Virginians?

According to a release from Gov. Justice on Tuesday, the tax cut would give $254 million back to West Virginians, but not every resident would see the same return.

West Virginia Income Tax Rates

According to the Tax Foundation, West Virginians pay between 3% and 6.5% in state income taxes, depending on their income. The following table shows the income tax rates as of July 2022.

3.00%$0-$9,999
4.00%$10,000-$24,999
4.50% $25,000-$39,999
6.00%$40,000-$59,999
6.50%$60,000+
State income tax rate based on income.

A decrease in state income taxes by 10% does not drop these percentages to zero but rather decreases each rate by 10%. If the tax cut was to pass without alterations, the rates would drop to:

2.70% $0-$9,999
3.60%$10,000-$24,999
4.05% $25,000-$39,999
5.40%$40,000-$59,999
5.85%$60,000+
State income tax rate based on income with 10% tax cut.

Most of the taxes that West Virginians see removed from their paychecks are federal, which would not change. Here is a breakdown of what rates workers will pay in federal income taxes for 2022 based on their incomes, according to business and finance publisher Kiplinger.

10%Up to $10,275
12%Up to $41,775
22%Up to $89,075
24%Up to $170,050
32%Up to $215,951
35%Up to $539,900
37% More than $539,900
State income tax rate based on income with 10% tax cut

Some counties and cities also have local income taxes, so some West Virginians who make more than $500,000 a year, could pay up to 44.5% in income taxes.

Money Saved

With the proposed tax cuts, rather than seeing a 10% increase on paychecks, most West Virginians would like only see an increase of a few dollars. People making $10,000 a year would expect to see a tax reduction of only $40 over the course of a year. People making $25,000 would save $112.50, and those with an annual income of $40,000 would see a tax reduction of $240.

People making more money, and therefore paying higher rates, would see the most savings. Those making $60,000 would save $390 a year, and people making $100,000 would see savings of $650.

If the proposal does become a law in the upcoming special session, it would go into effect in October 2022. Based on Gov. Justice’s recommendations, it would also include backpay for West Virginians’ income taxes from January to October of 2022. Residents who make steady incomes would expect to receive the following payments added to their tax returns for 2022 if the tax cut became law with Gov. Justice’s recommendation.

  • $10,000; $33.33
  • $25,000; $93.75
  • $40,000; $200.00
  • $60,000; $325.00
  • $100,000; $541.66

The above estimations are based on those filing as single people. Rates and amounts did not take into account any tax deductions that residents may qualify for.

Other states have enacted similar tax cuts, with several states, such as Florida and Texas, doing away with income tax altogether. Those states have seen various degrees of revenue change, but Kansas was an outlier and saw a rapid decline in revenue following a substantial tax cut in 2012.