At a glance
Rates and calculations
The West Virginia sales tax rate in 2025 is 6%. Some jurisdictions within the state apply their own sales tax of as much as 1%. Depending on where a transaction takes place, the total tax rate can be as high as 7%.
The full table of sales tax rates for each city and county in West Virginia is on the state tax department’s website. Here’s a small sample:
Recent tax rate changes
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 stay apprised of local rate changes that impact their nexus locations.
FAQs
How do you calculate West Virginia sales tax?
To calculate West Virginia sales tax, use this formula:
Sales tax = (state base rate + local rate) * taxable purchase price.
For example, if a local area’s tax rate is 1%, then you’d add that to the state base rate of 6%. So the total tax on a $100 sale would be $7.
Is West Virginia a destination-based or origin-based sales tax state?
West Virginia is a destination-based sales tax state. The applicable tax rate in West Virginia depends on where the customer receives the product.
Is West Virginia a Streamlined Sales Tax state?
Yes, West Virginia has been a full Streamlined Sales and Use Tax Agreement (SSUTA) member since October 1, 2005.
Remote sellers
Sellers based outside of West Virginia may still have nexus in the state. Physical nexus can be established by any physical presence, including property, employees, and contractors. Economic nexus can be established in the state if the seller reaches at least one of two thresholds: $100,000 in annual gross sales or 200 separate transactions in a year.
Marketplace facilitators that meet these thresholds on their third-party sellers' behalf can also establish sales tax nexus.
Nexus
FAQs
Do I need a West Virginia seller's permit if I’m a wholesaler?
If you make sales only 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 West Virginia Tax Division to confirm.
Do I need a West Virginia seller's permit if I only sell temporarily in the state?
Temporary sales activity in West Virginia may establish sales tax nexus, which means that you require a seller's permit and are obligated to comply with West Virginia’s sales tax laws. However, some sellers may be eligible to become what West Virginia deems “transient vendors.” This requires applying for a transient vendor license via the West Virginia Tax Division website.
Exemptions
West Virginia provides sales tax exemptions for some specific categories of products, such as:
- Textbooks
- Prescription drugs
- Certain medical devices
Some buyers may also be exempt from sales taxes, such as:
- Many government agencies
- Certain non-profit organizations
FAQs
Are groceries taxable?
Most grocery food items are exempt from West Virginia sales tax. However, prepared foods, candy, soft drinks, and dietary supplements are taxable.
Is clothing 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 priced below predetermined thresholds.
Are digital products taxable?
Most digital products (such as music, movies, e-books, and downloaded software) are not subject to sales tax in West Virginia. However, streaming services are usually taxable.
Is software as a service (SaaS) taxable?
In most cases, SaaS and other cloud software services are considered taxable in West Virginia. However, certain custom software development services are exempt.
Are services taxable?
West Virginia taxes various services under its sales tax laws, including landscaping, pet grooming, data processing, and IT services. Some professional and personal services are exempt.
Prepaid sales tax rates for fuel products
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.
Collecting sales tax for out-of-state sellers
Out-of-state sellers with no West Virginia physical presence may still have economic nexus requiring sales tax collection based on their sales volume (at least $100,000 per year) or their number of separate transactions (200).
Sellers can voluntarily register and collect West Virginia sales tax even if not legally required.
Once you’ve established economic nexus 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 Tax Division offers full registration services through its convenient online portal. When applying, you'll need to provide details on your business activities and tax compliance contacts.
Should you collect sales tax on shipping charges?
If shipping fees are separately stated on the invoice, they are excluded from West Virginia sales tax in most cases, as long as the shipping is done by a common carrier subject to regulation by the Public Service Commission of West Virginia. However, handling charges related to taxable goods or services sales are typically considered taxable.
When delivery/shipping fees are included in the total selling price rather than listed individually, they are considered part of the overall sale.
There are exceptions, so check with the West Virginia Tax Division if you need clarity on taxing shipping and delivery charges for your specific products and services.
Filing and paying
West Virginia requires sellers to file sales tax returns and remit collections to the state’s tax authority 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 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.
Returns can be filed online through the West Virginia Tax Division’s MyTaxes portal, by phone, or by paper. However, electronic filing is required for sellers with more than $25,000 in annual liability.
Monthly filing periods and due dates
Quarterly filing periods and due dates
Annual filing
Filing penalties
The penalties for late filing or inaccurate West Virginia sales tax returns are:
- 5% per month up to a maximum of 25% for failure to file taxes.
- 0.5% per month up to a maximum of 25% for failure to pay on time.
Criminal tax evasion charges may apply in cases of willful errors and omissions over specific liability, amounting to a 50% penalty.
Audit and appeals process
If a business is selected for a West Virginia sales tax audit, a West Virginia Tax Division auditor will thoroughly review the business’s 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.
Audit process
The typical stages of a West Virginia sales tax audit include:
- Notification letter: The West Virginia Tax Division sends an audit notice detailing the scope, timing, contact info, and requested records.
- Initial interview: The auditor explains the audit process and requests data to analyze. This may occur on-site or remotely.
- Fieldwork: The auditor inspects records, conducts sampling and projections, and calculates liability estimates. Additional data may be requested.
- Exit conference: The auditor presents their preliminary findings and calculations. This is a chance for the business to ask questions, present contrary evidence, or dispute methods.
- Assessment letter: A final determination letter with a bill for uncollected tax, interest, and penalties. Includes appeal rights info.
What to expect during the audit?
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.
Appealing the results of an audit
If a business disagrees with the auditor's final assessment after an exit conference, it can file a petition for reassessment with the Tax Commissioner's Office, within 60 days.
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.
How to register
Sellers can visit the West Virginia Tax Division’s online registration system to register for a West Virginia sales tax permit. You'll need to provide details like:
- Business name, address, ownership type
- Federal EIN or SSN
- Estimate of monthly taxable West Virginia sales
- Business start date and industry
- Owner and compliance contacts
Once registered, you must collect and remit sales tax on West Virginia taxable sales, filing either manually or with the aid of sales tax software.
Cost of registration
Registering for a West Virginia business license and sales tax permit costs $30. However, additional fees, taxes, or bonds may sometimes apply.
More information and contacts
For West Virginia sales tax questions or audit disputes, contact:
- West Virginia Tax Division
- Phone: (304) 558-3333
- Website: tax.wv.gov
