At a glance
- Corporate tax
- 6.5% flat
- Tax on wages
- 2.11%–4.58% (2026)
- Sales tax
- 6% (+ up to 1% municipal)
- Economic nexus
- $100,000 or 200 transactions
- Minimum wage
- $8.75/hr
- UI wage base
- $9,500
- New-employer UI rate
- 2.7% (cut 7% from July 2026)
- Paid leave program
- None
- Annual report
- Jun 30 — $25
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register the corporation in West Virginia
Before doing business in West VirginiaApply to the Secretary of State for a certificate of authority ($100).
Register with the State Tax Department
Before the first payroll or taxable saleRegister with the State Tax Department for corporation net income tax, withholding and, if needed, sales tax.
Register for unemployment insurance
Before the first West Virginia payrollOpen an unemployment compensation account with WorkForce West Virginia.
Report new hires and contractors
Within 14 daysReport each new hire, rehire and contractor paid $2,500 or more to the Bureau for Child Support Enforcement.
Register with the city
When opening a West Virginia locationCheck the city’s business and occupation tax, municipal sales tax and licenses.
Buy workers’ compensation insurance
Before the first West Virginia employee startsWorkers’ compensation coverage is required for West Virginia employees.
File the annual report
By June 30 each yearFile the annual report and pay $25 to the Secretary of State.
The six areas
- AccountingAccounting and state tax in West VirginiaWest Virginia taxes corporations at 6.5% with mandatory combined reporting, a single sales factor and market-based sourcing since 2022, and conforms to federal tax changes enacted through 2025.Corporation net income tax rate6.5%
- ReceivablesReceivables and sales tax in West VirginiaWest Virginia’s 6% sales tax reaches many services and prewritten software, while electronic data processing is exempt, so SaaS depends on what it does. Remote sellers register at $100,000 or 200 transactions.Sales tax rate6%
- PayablesPayables and contractors in West VirginiaWest Virginia treats contractors paid $2,500 or more as reportable new hires, due within 14 days. Its sales tax reaches many services and prewritten software, so use tax on purchases needs a process.Contractor reporting threshold$2,500 in a year
- PayrollPayroll taxes and employer rules in West VirginiaWest Virginia payroll withholds 2.11% to 4.58%, pays unemployment on the first $9,500, and has short timelines: new hires and contractors reported within 14 days, wages at least twice a month.Income tax, 20262.11% to 4.58%
- ComplianceCompliance and filings in West VirginiaWest Virginia compliance is a $25 annual report by June 30, a combined corporation net income tax report for unitary groups, and unclaimed property before November 1. Cities can add a gross receipts tax.Certificate of authority (foreign corporation)$100
- AdvisoryAdvisory: credits and decisions in West VirginiaWest Virginia’s income tax keeps falling, its R&D credit requires certification before the work, and its 14-day new-hire rule, covering contractors too, catches out-of-state employers.Top income tax rate, 20264.58%
Who you register with
- West Virginia State Tax DepartmentCorporation net income tax, sales and use tax, withholding
- West Virginia Secretary of StateCertificate of authority and annual report
- WorkForce West VirginiaUnemployment compensation account and quarterly reports
- West Virginia Division of LaborMinimum wage and wage payment law
- West Virginia State Treasurer — Unclaimed PropertyAnnual holder report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are West Virginia’s neighbors.
- KYKentuckySimple state rates, local occupational taxes on wages and profits, and SaaS is taxed.
- MDMarylandSaaS taxed at 3% since 2025, county income tax on payroll, and FAMLI from 2027
- OHOhioNo corporate income tax, but city and school district taxes on every paycheck
- PAPennsylvaniaFlat 3.07% state tax, local wage taxes nearly everywhere, and taxable SaaS
- VAVirginiaFlat 6% tax, no tax on SaaS, local BPOL licenses, and SCC fees priced by shares
Common questions
How much of our income does West Virginia tax?
On its West Virginia share. Since 2022 West Virginia apportions with a single sales factor and sources services to where they are delivered, so West Virginia customers, not West Virginia staff, draw income into the state. The rate is 6.5%.
Is SaaS taxable in West Virginia?
It depends on what the product does. West Virginia taxes prewritten software and services generally, but exempts electronic data processing services, defined as processing another’s data or providing access to computer equipment to process or examine data, and related software. A SaaS product that is essentially data processing for the customer falls in the exemption; one that is a license to use prewritten software may not.
Do we report contractors in West Virginia?
Yes, once you contract to pay a contractor $2,500 or more in a year, or have paid that much. West Virginia requires employers to report independent contractors performing services in the state, within 14 days of the earlier of the payments reaching $2,500 or signing a contract for that amount.
How fast do we report a new West Virginia hire?
Within 14 days of the hire, rehire or return to work, not the 20 days most states allow. Electronic filers can instead send two monthly transmissions 12 to 16 days apart.
Is there an annual report in West Virginia?
Yes. Every corporation authorized to do business in West Virginia files an annual report with the Secretary of State and pays a $25 fee by June 30. After five consecutive timely annual reports, a company can elect to file biennially instead. A corporation that hasn’t filed and paid can’t engage in business activity in the state.
Is there a West Virginia R&D credit?
Only with planning. West Virginia’s strategic research and development credit is the greater of 3% of the year’s qualified R&D expenditure or 10% of the excess over a base amount, but the program must be certified by the Tax Commissioner, and a late application forfeits the credit. Unused credit carries forward.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- W. Va. Code § 11-24-4 — Corporation net income tax rate
- W. Va. Code § 11-24-3 — Meaning of terms; IRC conformity
- W. Va. Code § 11-24-7 — Allocation and apportionment
- W. Va. Code § 11-24-13a — Combined report for unitary groups
- W. Va. Code § 11-21-4j — Personal income tax rates for 2026
- W. Va. Code § 11-15-3 — Consumers sales and service tax rate
- W. Va. Code § 11-15-2 — Definitions (“service”, custom software)
- W. Va. Code § 11-15-9 — Exemptions (electronic data processing services)
- W. Va. Code § 11-15B-2 — Definitions (prewritten computer software)
- W. Va. Code § 11-15A-6b — Remote sellers and marketplace facilitators
- W. Va. Code § 8-13C-4 — Municipal sales and use tax
- W. Va. Code § 8-13-5 — Municipal business and occupation tax
- West Virginia State Tax Department — Sales and Use Tax
- W. Va. Code § 21A-1A-28 — Wages (taxable wage base)
- W. Va. Code § 21A-5-5 — Rate of contribution
- West Virginia Legislature — SB 1053 (2026), enrolled
- W. Va. Code § 21-5C-2 — Minimum wage
- W. Va. Code § 21-5-3 — Payment of wages
- W. Va. Code § 21-5-4 — Employees separated from payroll
- W. Va. Code § 48-18-125 — Employment and income reporting
- W. Va. Code § 59-1-2a — Annual and biennial business fees and reports
- W. Va. Code § 59-1-2 — Fees charged by the Secretary of State
- W. Va. Code § 36-8-7 — Report of abandoned property
- W. Va. Code § 11-13R-5 — Strategic research and development credit amount
- W. Va. Code § 11-13R-6 — Application of the R&D credit
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.