By 2026, West Virginia stops taxing Social Security benefits for everyone, completing a three-year phase-out that started in 2024. Lower-income retirees were already fully exempt; higher-income retirees saw the tax shrink each year until it disappeared. The West Virginia retirement income tax also gives seniors a flat $8,000 modification and exempts military pensions, while taxing most IRA and 401(k) income.
This guide explains the Social Security phase-out, the $2,000 government-pension and $8,000 senior modifications, and how retirement accounts are treated.
In This Guide
- West Virginia Retirement Income Tax at a Glance
- West Virginia Retirement Income Tax: How It Works
- Social Security
- Government Pensions, Military Retirement, and the $8,000 Modification
- IRA, 401(k), and Other Retirement Accounts
- Which Modification to Take
- Frequently Asked Questions
- Next Steps
West Virginia Retirement Income Tax at a Glance
West Virginia's picture is improving for retirees. Social Security is fully exempt by 2026. Military retirement is exempt. Seniors get a flat $8,000 modification, and government pensions get a smaller $2,000 break. IRA and 401(k) income is otherwise taxable. The table below lays out each type.
| Income type | Treatment | Notes |
|---|---|---|
| Social Security | Fully exempt by 2026 | Phase-out: 35% (2024), 65% (2025), 100% (2026) above the income floor |
| Government pensions | $2,000 modification | State and federal government pensions |
| Military retirement | Fully exempt | No dollar cap |
| Senior modification | $8,000 for age 65+ or disabled | Take the higher of this or the specific retirement modifications |
| IRA and 401(k) distributions | Taxable | Subject to the $8,000 senior modification |
West Virginia's income tax is graduated from 2.36 percent to 5.12 percent for 2024. Taxable retirement income is taxed under that schedule.
West Virginia Retirement Income Tax: How It Works
The defining recent change is the Social Security phase-out enacted through House Bill 4880. Lower-income retirees, those with federal AGI at or below $50,000 single or $100,000 joint, were already 100 percent exempt. For retirees above that floor, the state exempted a growing share of benefits each year: 35 percent for 2024, 65 percent for 2025, and 100 percent for 2026. So by 2026, Social Security is fully exempt for every West Virginia taxpayer.
Beyond Social Security, the West Virginia Tax Division offers a $2,000 modification for government pensions, a full exemption for military retirement, and a separate $8,000 modification for seniors and disabled taxpayers. Most other retirement income, including IRA and 401(k) withdrawals, is taxable but can be sheltered in part by that $8,000 modification.
Social Security
West Virginia is finishing a phase-out of its Social Security tax. Retirees with federal AGI at or below $50,000 (single) or $100,000 (joint) have been fully exempt throughout. For retirees above those limits, the exempt share climbed each year under House Bill 4880: 35 percent of benefits exempt for 2024, 65 percent for 2025, and 100 percent for 2026 and after.
The practical result is that for the 2026 tax year, all West Virginia retirees keep 100 percent of their Social Security regardless of income. If you are filing for an earlier year, the phase-out percentages above determine how much of your benefit was exempt if your income was over the floor.
Government Pensions, Military Retirement, and the $8,000 Modification
West Virginia gives several pension-related breaks:
- Government pensions (state and federal) get a $2,000 modification, meaning you can subtract up to $2,000 of that pension income.
- Military retirement income is fully exempt, with no dollar cap.
- A separate $8,000 modification is available to taxpayers 65 or older or permanently disabled.
The $8,000 senior modification is the broad one. It is not tied to a particular income source, so it can shelter up to $8,000 of otherwise-taxable retirement income, including IRA and 401(k) withdrawals. Military retirees benefit most, since their pension is already fully exempt and they can still use the senior modification against other income.
IRA, 401(k), and Other Retirement Accounts
IRA and 401(k) distributions are otherwise taxable in West Virginia. There is no dedicated retirement-account exemption, so this income is taxed under the regular schedule, subject to the $8,000 senior modification if you qualify by age or disability.
For a retiree 65 or older, that means the first $8,000 of taxable retirement income, which can include IRA and 401(k) withdrawals, can be subtracted, with the rest taxed normally. A retiree who relies heavily on account withdrawals will still owe West Virginia tax on the amount above the modification.
Picture a single West Virginia retiree, age 68, filing for the 2026 tax year with $24,000 in Social Security and a $30,000 traditional IRA withdrawal. The Social Security is fully exempt, since it reaches 100 percent exemption in 2026. The $30,000 IRA withdrawal is taxable, but the retiree subtracts the $8,000 senior modification, leaving $22,000 taxed under West Virginia's regular brackets. A few years earlier, before the Social Security phase-out finished, a higher-income version of this retiree would also have owed tax on part of the Social Security. The figures here are hypothetical and shown only to illustrate the mechanic; they are not a real case and not a prediction of your own outcome.
For how these accounts factor into paying for care, retirement accounts for care covers the tradeoffs.
Which Modification to Take
There is an important rule about stacking. A senior generally takes the higher of the $8,000 senior modification or the specific retirement modifications (such as the $2,000 government-pension break), rather than claiming both freely on the same income. For most retirees the $8,000 modification is larger and therefore the one to use, but a retiree whose situation lines up differently should compare.
This is general information rather than personalized tax advice. Which modification produces the better result, and how military, government-pension, and senior breaks interact, is exactly the kind of comparison worth confirming with the West Virginia Tax Division or a tax professional. If retirement income is part of how you will fund care, building a senior care funding plan is a useful next read.
Not sure which West Virginia modification gives you the bigger break? Chat with Brevy's care navigator to compare your options.
Frequently Asked Questions
Not by 2026. West Virginia phased out its Social Security tax under House Bill 4880, and benefits are fully exempt for all taxpayers for the 2026 tax year. Retirees with AGI at or below $50,000 single / $100,000 joint were already fully exempt; others saw 35 percent exempt in 2024 and 65 percent in 2025.
No. West Virginia fully exempts military retirement income, with no dollar cap.
Yes, but partly sheltered. IRA and 401(k) income is taxable under the regular schedule, though taxpayers 65 or older or disabled can use the $8,000 senior modification against it.
It is a subtraction of up to $8,000 of taxable income for taxpayers 65 or older or permanently disabled. It is not tied to a specific income source, so it can shelter IRA, 401(k), or pension income.
Generally you take the higher of the $8,000 senior modification or the specific retirement modifications, rather than both on the same income. For most retirees the $8,000 figure is larger.
Next Steps
If you are retired in West Virginia, the news is mostly good; confirm which breaks apply to your income.
- Confirm Social Security is fully exempt for your filing year; it reaches 100 percent for 2026.
- Apply the military exemption if you have military retirement income; it is fully exempt.
- Use the $8,000 senior modification (age 65+ or disabled) against taxable income, including IRA and 401(k) withdrawals.
- Take the higher modification, comparing the $8,000 senior break against the specific pension modifications.
If you are figuring out how to pay for care, how to pay for senior care lays out the options.
Learn More
Find personalized help making sense of the West Virginia retirement income tax at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.