West Virginia taxes capital gains at 5.12%. Combined with federal taxes, your effective rate on a home sale could reach 23.9%.
WV State Rate
5.12%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
23.9%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If West Virginia is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in West Virginia don't qualify for the exclusion. You'll owe 5.12% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In West Virginia, homes sold in February sell for 6% more than those sold in October (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in West Virginia and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 3.07% | $4,605 | Flat tax rate | |
| 3.5% | $5,250 | Flat tax rate (2026) | |
| 4% | $6,000 | Flat tax rate | |
West VirginiaYou | 5.12% | $7,680 | Top marginal rate |
| 5.75% | $8,625 | Top rate; local surcharge possible | |
| 5.75% | $8,625 | Top marginal rate |
Selling in Pennsylvania instead of West Virginia would save $3,075 in state tax on a $150K gain.
West Virginia taxes capital gains as ordinary income at rates up to 5.12%.
The state's very affordable housing means most primary residence gains fall well within the federal exclusion.
Charleston, Morgantown, and the Eastern Panhandle (near DC) are the primary markets.
The Eastern Panhandle has seen appreciation from DC commuters, creating the state's highest-value properties.
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