On March 7, Governor Jim Justice signed into law House Bill 2526, which immediately reduced the state income tax rate for West Virginia residents.
Based on this tax rate change, the West Virginia State Tax Department recently issued updated tax tables for employers to apply when calculating West Virginia state income tax withholdings for employees.
For WVU employees with West Virginia state income tax withholdings, the new tax tables will be applied on the April 7 pay date.
Overall, most employees should see a decrease in their West Virginia state income tax withholdings. The actual decrease will vary depending on the employee’s income level, exemptions claimed and other withholding elections.
Prior requests by employees of an additional flat dollar amount of West Virginia state income tax withholdings from their pay will continue to have the extra withholding. Employees do not need to complete a new West Virginia income tax withholding form, but may choose to do so.
Those who choose to complete a new form should submit it to any WVU Shared Services storefront location including One Waterfront Place, the Mountainlair, Health Sciences or the National Research Center for Coal and Energy, or via Liquid Files to payroll@mail.wvu.edu.
These updated tax rates will only apply to employees with West Virginia state income tax withheld from their pay. Employees with state income tax withholdings from other states are not impacted.
These changes do not affect an individual’s 2022 West Virginia personal income tax return filed in 2023.
The tax rate changes are retroactive to Jan. 1, 2023. However, as per the West Virginia State Tax Department, if an individual has had over-withheld income tax in 2023 prior to the implementation of the rate change, a refund will be available to all taxpayers upon the filing of their 2023 personal income tax return in early 2024.
Refunds will not be issued by WVU. If owed, refunds will be issued by the West Virginia State Tax Department when employees file their 2023 personal income tax return.
HB 2526 also included additional tax credits available to West Virginia residents. These credits can be claimed on an individual’s 2023 West Virginia personal income tax return.
For additional information on these credits, please consult your professional tax preparer and/or the West Virginia State Tax Department.
WVU Tax Services cannot provide personal income tax advice. We recommend that you consult your personal tax preparer. For general questions, WVU Tax Services can be contacted at tax@mail.wvu.edu.