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Updated
March 11, 2024
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West Virginia levies a 6% state sales tax on the retail sale, lease, rental, or license to use tangible personal property and certain services in the state. Local jurisdictions can also impose a 1% sales tax for a maximum potential combined rate of 7%.
This comprehensive guide provides an overview of West Virginia sales tax requirements, rates, exemptions, and more details to help your business stay tax-compliant.
The West Virginia sales tax rate in 2023 is 6%. This comprises a base rate of 6% plus local rates that can reach up to 1%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 7%.
You can look up the full table of sales tax rates in each city and county in West Virginia on the State Tax Department's website. Here’s a small sample:
There have been no recent changes to the state or local sales tax rates in West Virginia. The 6% state sales tax rate has remained steady since 2005.
Some West Virginia cities and counties periodically enact or adjust local sales taxes. Businesses should monitor any local rate changes that impact their nexus locations.
To calculate West Virginia sales tax, use this formula:
Sales tax = (state base rate + local rate) * taxable purchase price
For example: State base rate: 6%
Local rate: 1%
Taxable purchase: $100
Sales tax = (6% + 1%) * $100 = 7% * $100 = $7
West Virginia is a destination-based sales tax state. The applicable tax rate in West Virginia depends on where the customer receives the product.
Yes, West Virginia has been a full Streamlined Sales and Use Tax Agreement (SSUTA) member since October 1, 2005.
If you only make sales for resale and not to end consumers, you may not need a West Virginia seller's permit. However, you may still have sales tax obligations for your taxable purchases. Check with the State Tax Department to confirm.
Even temporary selling activity in West Virginia can establish a sales tax nexus requiring a seller's permit and collection obligations. There is no temporary selling exemption in the state.
West Virginia provides sales tax exemptions on some specific categories of products and buyers, such as:
Most grocery food items are exempt from West Virginia sales tax. However, prepared foods, candy, soft drinks, and dietary supplements are still taxable.
Clothing and footwear are generally taxable in West Virginia. However, there is a sales tax holiday in early August for certain back-to-school items under set price thresholds.
Yes, West Virginia taxes digital products like music, movies, ebooks, streaming services, software, mobile apps, and more. Cloud software services are also generally taxable.
In most cases, SaaS and other cloud software services are considered taxable in West Virginia. However, certain custom software development services can be exempt.
West Virginia taxes various services under its sales tax laws, including landscaping, pet grooming, data processing, IT services, and more. Some professional and personal services are exempt.
In addition to the general state sales tax, West Virginia levies selective excise taxes on selling or consuming certain products like motor fuels, cigarettes, tobacco, alcohol, and marijuana.
West Virginia does not have a statewide food and beverage tax. However, municipalities and counties may levy certain food taxes on prepared meals.
Remote sellers with no physical presence in West Virginia may still have economic nexus based on their sales volume or transactions in the state. Such retailers must register and collect West Virginia sales tax if they exceed either:
A marketplace facilitator tax applies to marketplace providers meeting these thresholds on their third-party sellers' behalf.
West Virginia imposes a variable rate excise tax on gasoline and other motor fuels and an additional 5% backup tax calculated on the statewide average wholesale price.
Counties and municipalities in West Virginia can impose up to a 1% local sales tax on top of the 6% state sales tax rate. Over 40 local jurisdictions levy a sales tax, with six cities charging the maximum 1% rate.
Let’s explore the requirements and best practices for collecting and remitting West Virginia sales tax.
Out-of-state sellers with no West Virginia physical presence may still have economic nexus requiring sales tax collection based on their sales volume or transactions.
Specifically, you must register and collect West Virginia sales tax if you are considered to be "engaged in business" in the state by meeting either of these thresholds:
There are also West Virginia sales tax obligations if you have property, employees, contractors, trademarks, or other tangible assets within state borders. Remote sellers can voluntarily register and collect West Virginia sales tax even if not legally required.
Once economic nexus is established, you must complete the West Virginia business registration process and acquire a seller's permit. This allows your business to operate in West Virginia and officially gives you sales tax collection responsibilities.
The West Virginia State Tax Department offers full registration services through its convenient online portal. You'll provide details on your business activities and tax compliance contacts.
If shipping fees are separately stated on the invoice, they are generally excluded from West Virginia sales tax. However, handling charges related to taxable goods or services sales are typically considered taxable.
When delivery/shipping fees are built into the total selling price rather than broken out, they take on the same tax status as the overall sale. So, taxable goods with shipping included would see the tax calculated on the entire sale amount.
There are exceptions, so check with the West Virginia State Tax Department if you need clarity on taxing shipping and delivery charges for your specific products and services.
West Virginia requires sellers to file sales tax returns and remit collections to the State Tax Department on a monthly, quarterly, or annual basis, depending on sales volume. Payments must be submitted by the due date for each assigned filing period.
Returns can be filed online through the West Virginia State Tax Department's MyTaxes portal, by phone, or by paper. However, electronic filing is required for sellers with over $25,000 in annual liability.
The West Virginia State Tax Department assigns each seller a filing frequency of monthly, quarterly, or annual.
Returns and payments are due by the 20th day of the month after each reporting period ends. If the 20th falls on a weekend or holiday, the filing deadline moves to the next business day.
Monthly filing periods and due dates
Quarterly filing periods and due dates
Annual filing
The penalties for late filing or inaccurate West Virginia sales tax returns are:
Criminal tax evasion charges may apply to willful errors and omissions over specific liability amounting to a 50% penalty.
The monthly, quarterly, or annual West Virginia sales tax returns are due by the 20th after each reporting period closes. The exception is yearly returns, which must be filed by January 30 for the prior calendar year.
Suppose a business is selected for a West Virginia sales tax audit. In that case, the State Tax Department auditor will thoroughly review tax returns, sales records, exemption certificates, and other documents to verify compliance.
Discrepancies may result in assessments for uncollected tax, interest, and penalties. But, businesses have opportunities to contest audit findings through the appeals process.
The typical stages of a West Virginia sales tax audit include:
West Virginia sales tax audits focus on common issues like taxability determinations, exemption certificate compliance, proper sourcing of local taxes, returns accuracy, and timeliness.
Auditors may review sales invoices, bank deposit details, expense records, exemption certificates, and other sources to verify tax calculations and reporting.
If a business disagrees with the auditor's final assessment after an exit conference, it can file a petition for reassessment within 60 days. This appeals to the Tax Commissioner's Office for review.
Further appeals of decisions are possible to the West Virginia Office of Tax Appeals and Kanawha County Circuit Court. Businesses may benefit from sales tax audit defense services throughout the multi-stage appeals process.
Sellers can visit the State Tax Department's online registration system to register for a West Virginia sales tax permit. You'll need to provide details like:
Once registered, you must collect and remit sales tax on West Virginia taxable sales. Use sales tax software or manual filing.
Out-of-state online retailers have West Virginia economic nexus for sales tax if they exceed $100,000 in state sales or 200 WV transactions in the current or prior calendar year.
A physical presence like warehouses or local order sourcing creates West Virginia registration requirements. Voluntary early registration is possible, too.
Registering for a West Virginia business license and sales tax permit costs $30. However, additional fees, taxes, or bonds may sometimes apply.
For West Virginia sales tax questions or audit disputes, contact:
There you have it—a comprehensive guide on West Virginia's sales tax regime. Need help filing taxes for your Shopify store? Get a demo with Numeral now.
The West Virginia sales tax rate in 2023 is 6%. This comprises a base rate of 6% plus local rates that can reach up to 1%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 7%.
You can look up the full table of sales tax rates in each city and county in West Virginia on the State Tax Department's website. Here’s a small sample:
There have been no recent changes to the state or local sales tax rates in West Virginia. The 6% state sales tax rate has remained steady since 2005.
Some West Virginia cities and counties periodically enact or adjust local sales taxes. Businesses should monitor any local rate changes that impact their nexus locations.
To calculate West Virginia sales tax, use this formula:
Sales tax = (state base rate + local rate) * taxable purchase price
For example: State base rate: 6%
Local rate: 1%
Taxable purchase: $100
Sales tax = (6% + 1%) * $100 = 7% * $100 = $7
West Virginia is a destination-based sales tax state. The applicable tax rate in West Virginia depends on where the customer receives the product.
Yes, West Virginia has been a full Streamlined Sales and Use Tax Agreement (SSUTA) member since October 1, 2005.
If you only make sales for resale and not to end consumers, you may not need a West Virginia seller's permit. However, you may still have sales tax obligations for your taxable purchases. Check with the State Tax Department to confirm.
Even temporary selling activity in West Virginia can establish a sales tax nexus requiring a seller's permit and collection obligations. There is no temporary selling exemption in the state.
West Virginia provides sales tax exemptions on some specific categories of products and buyers, such as:
Most grocery food items are exempt from West Virginia sales tax. However, prepared foods, candy, soft drinks, and dietary supplements are still taxable.
Clothing and footwear are generally taxable in West Virginia. However, there is a sales tax holiday in early August for certain back-to-school items under set price thresholds.
Yes, West Virginia taxes digital products like music, movies, ebooks, streaming services, software, mobile apps, and more. Cloud software services are also generally taxable.
In most cases, SaaS and other cloud software services are considered taxable in West Virginia. However, certain custom software development services can be exempt.
West Virginia taxes various services under its sales tax laws, including landscaping, pet grooming, data processing, IT services, and more. Some professional and personal services are exempt.
In addition to the general state sales tax, West Virginia levies selective excise taxes on selling or consuming certain products like motor fuels, cigarettes, tobacco, alcohol, and marijuana.
West Virginia does not have a statewide food and beverage tax. However, municipalities and counties may levy certain food taxes on prepared meals.
Remote sellers with no physical presence in West Virginia may still have economic nexus based on their sales volume or transactions in the state. Such retailers must register and collect West Virginia sales tax if they exceed either:
A marketplace facilitator tax applies to marketplace providers meeting these thresholds on their third-party sellers' behalf.
West Virginia imposes a variable rate excise tax on gasoline and other motor fuels and an additional 5% backup tax calculated on the statewide average wholesale price.
Counties and municipalities in West Virginia can impose up to a 1% local sales tax on top of the 6% state sales tax rate. Over 40 local jurisdictions levy a sales tax, with six cities charging the maximum 1% rate.
Let’s explore the requirements and best practices for collecting and remitting West Virginia sales tax.
Out-of-state sellers with no West Virginia physical presence may still have economic nexus requiring sales tax collection based on their sales volume or transactions.
Specifically, you must register and collect West Virginia sales tax if you are considered to be "engaged in business" in the state by meeting either of these thresholds:
There are also West Virginia sales tax obligations if you have property, employees, contractors, trademarks, or other tangible assets within state borders. Remote sellers can voluntarily register and collect West Virginia sales tax even if not legally required.
Once economic nexus is established, you must complete the West Virginia business registration process and acquire a seller's permit. This allows your business to operate in West Virginia and officially gives you sales tax collection responsibilities.
The West Virginia State Tax Department offers full registration services through its convenient online portal. You'll provide details on your business activities and tax compliance contacts.
If shipping fees are separately stated on the invoice, they are generally excluded from West Virginia sales tax. However, handling charges related to taxable goods or services sales are typically considered taxable.
When delivery/shipping fees are built into the total selling price rather than broken out, they take on the same tax status as the overall sale. So, taxable goods with shipping included would see the tax calculated on the entire sale amount.
There are exceptions, so check with the West Virginia State Tax Department if you need clarity on taxing shipping and delivery charges for your specific products and services.
West Virginia requires sellers to file sales tax returns and remit collections to the State Tax Department on a monthly, quarterly, or annual basis, depending on sales volume. Payments must be submitted by the due date for each assigned filing period.
Returns can be filed online through the West Virginia State Tax Department's MyTaxes portal, by phone, or by paper. However, electronic filing is required for sellers with over $25,000 in annual liability.
The West Virginia State Tax Department assigns each seller a filing frequency of monthly, quarterly, or annual.
Returns and payments are due by the 20th day of the month after each reporting period ends. If the 20th falls on a weekend or holiday, the filing deadline moves to the next business day.
Monthly filing periods and due dates
Quarterly filing periods and due dates
Annual filing
The penalties for late filing or inaccurate West Virginia sales tax returns are:
Criminal tax evasion charges may apply to willful errors and omissions over specific liability amounting to a 50% penalty.
The monthly, quarterly, or annual West Virginia sales tax returns are due by the 20th after each reporting period closes. The exception is yearly returns, which must be filed by January 30 for the prior calendar year.
Suppose a business is selected for a West Virginia sales tax audit. In that case, the State Tax Department auditor will thoroughly review tax returns, sales records, exemption certificates, and other documents to verify compliance.
Discrepancies may result in assessments for uncollected tax, interest, and penalties. But, businesses have opportunities to contest audit findings through the appeals process.
The typical stages of a West Virginia sales tax audit include:
West Virginia sales tax audits focus on common issues like taxability determinations, exemption certificate compliance, proper sourcing of local taxes, returns accuracy, and timeliness.
Auditors may review sales invoices, bank deposit details, expense records, exemption certificates, and other sources to verify tax calculations and reporting.
If a business disagrees with the auditor's final assessment after an exit conference, it can file a petition for reassessment within 60 days. This appeals to the Tax Commissioner's Office for review.
Further appeals of decisions are possible to the West Virginia Office of Tax Appeals and Kanawha County Circuit Court. Businesses may benefit from sales tax audit defense services throughout the multi-stage appeals process.
Sellers can visit the State Tax Department's online registration system to register for a West Virginia sales tax permit. You'll need to provide details like:
Once registered, you must collect and remit sales tax on West Virginia taxable sales. Use sales tax software or manual filing.
Out-of-state online retailers have West Virginia economic nexus for sales tax if they exceed $100,000 in state sales or 200 WV transactions in the current or prior calendar year.
A physical presence like warehouses or local order sourcing creates West Virginia registration requirements. Voluntary early registration is possible, too.
Registering for a West Virginia business license and sales tax permit costs $30. However, additional fees, taxes, or bonds may sometimes apply.
For West Virginia sales tax questions or audit disputes, contact:
There you have it—a comprehensive guide on West Virginia's sales tax regime. Need help filing taxes for your Shopify store? Get a demo with Numeral now.
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
With Numeral, you spend five minutes or less every month on sales tax. We’re the white-glove service you are looking for that’s run by ecommerce operators and CPAs.
No long-term contract. No credit card required.
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