Active-duty pay
Taxed
Active-duty pay taxable to WV residents.
State Guide · WV
West Virginia — Military Tax Treatment
West Virginia fully exempts military retirement since 2018. Active duty and Guard pay are taxable.
Tax treatment at a glance
Guard & Reserve drill pay
Taxed
Guard and Reserve drill pay is taxable West Virginia income. SCRA protections apply during federal activation but not routine drill.
Military retirement pay
Fully Exempt
Military retirement pay fully exempt as of 2018.
The numbers · verified for tax year 2025
Top marginal rate
4.82%
Retirement-pay exemption
Full
West Virginia fully exempts all military retirement pay (Armed Forces, Reserves, National Guard, uniformed services) for tax years beginning on or after Jan 1, 2019 — no cap, no age requirement.
Standard deduction
West Virginia has no standard deduction; it uses a $2,000-per-exemption personal-exemption system. The top rate is 4.82% for 2025 (dropping again in 2026).
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — West Virginia included.
Survivor Benefit Plan (SBP)
Follows retirement
West Virginia exempts military retirement — SBP annuities are generally exempt.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in West Virginia, West Virginia cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to West Virginia can keep Texas as their tax domicile and avoid West Virginia state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether West Virginia exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01Retirement exemption: WV IT-140W for retirement income modifications
- 02Guard drill pay is taxable WV income
Veteran-specific tax benefits
Disabled veteran homestead exemption.
Official authority
https://tax.wv.gov/ ↗State tax law changes annually. Verify current rules with the West Virginia Department of Revenue before making any tax decision.
West Virginia military tax — common questions
Does West Virginia tax military retirement pay in 2026?
West Virginia fully exempts military retirement pay. Military retirement pay fully exempt as of 2018.
Does West Virginia tax active-duty military pay?
West Virginia taxes active-duty military pay for state residents. Active-duty pay taxable to WV residents. Under the SCRA, West Virginia can only tax the military pay of service members who are legally domiciled in West Virginia — not those merely stationed there.
Does West Virginia tax National Guard and Reserve drill pay?
West Virginia taxes Guard and Reserve drill pay. Guard and Reserve drill pay is taxable West Virginia income. SCRA protections apply during federal activation but not routine drill.
Is VA disability compensation taxed in West Virginia?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including West Virginia — taxes it as income.
If I'm stationed in West Virginia but claim another state, can West Virginia tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, West Virginia cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides