Selling a business in West Virginia: what the state takes (2026)
West Virginia’s top individual income tax rate is 4.58%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4.58%
- Top West Virginia income tax rate (2026)
- $1,145,000
- State tax on a $25M long-term gain
- 28.4%
- Combined federal and state rate on $25M
- 23 of 51
- Rank by total tax on $25M (1 = highest)
How West Virginia taxes a business sale
- Income tax
- Top rate 4.58%: Over $60,000 (single and joint).
- Long-term capital gains
- Capital gains are taxed as ordinary income with no exclusion; the top 4.58% rate applies to nearly all of the gain.
- Local taxes
- No local income taxes on capital gains (some cities charge flat per-worker service fees).
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| West Virginia tax | $458,000 | $1,145,000 | $2,290,000 |
| Total tax | $2,838,000 | $7,095,000 | $14,190,000 |
| Effective combined rate | 28.38% | 28.38% | 28.38% |
| Net proceeds after tax | $7,162,000 | $17,905,000 | $35,810,000 |
| Extra tax versus Texas | $458,000 | $1,145,000 | $2,290,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- West Virginia tax
- $1,145,000
- Taxable gain at 4.58%
- $1,145,000
- Total tax
- $7,095,000
- Effective rate on the gain
- 28.38%
- Net proceeds after tax
- $17,905,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Kentucky27.3% combined, $18.18M net
- Maryland32.3% combined, $16.93M net
- Ohio26.8% combined, $18.31M net
- Pennsylvania26.9% combined, $18.28M net
- Virginia29.5% combined, $17.61M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
West Virginia figures are for tax year 2026. 2026 rates come from new W. Va. Code 11-21-4j (Enrolled CS for SB 392, 2026 session), which applies to taxable years beginning on and after January 1, 2026. Further revenue-triggered cuts are possible from 2027 under 11-21-4h. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1West Virginia Legislature, Enrolled CS for SB 392 (2026), adding 11-21-4j
- 2EY Tax News 2026-0864: West Virginia law lowers personal income tax rate retroactive to Jan 1, 2026. Secondary source
- 3Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): West Virginia,” 2026, https://laurent.capital/research/seller-tax-map/west-virginiaLink (HTML)
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