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Next year, West Virginia residents will see a smaller portion of their paychecks go toward taxes.
The state officially granted a 4 percent reduction to its personal income tax, effective January 1, 2025. The tax cut was certified Thursday by State Auditor J.B. McCuskey and Larry Pack, acting secretary of the West Virginia Department of Revenue.
The certification follows an early July announcement from Gov. Jim Justice that the state anticipated a reduction to personal income taxes. This was credited to a 2023 law, which automatically triggers income tax cuts when the state revenue surpasses figures from 2019, adjusted for inflation.
Justice has repeatedly expressed a desire to see state income taxes eliminated outright and has described the cuts as a way to support consumers and attract businesses and residents to West Virginia. In 2023, he signed into law a 21 percent reduction in state income taxes, the largest cut in state history.
Some elected officials and economic analysts have expressed concern that reducing taxes could hurt state services like Medicaid and public education by reducing their access to funding.
Still, Justice, McCuskey and Pack described the latest round of cuts as a win for everyday West Virginians.
“While it won’t happen during my time as your governor, our state is on a pathway to eliminating its personal income tax. So, let’s keep the ball rolling in the same direction,” Justice said in a Thursday press release. “Getting rid of the personal income tax will bring more goodness and more people to our beautiful state.”
