A clear, up-to-date overview of West Virginia’s sales tax rates, rules, and compliance requirements for businesses.
The West Virginia sales tax rate 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:
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.
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.
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.
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 WV 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.
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.
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.
West Virginia provides sales tax exemptions for some specific categories of products, such as:
Some buyers may also be exempt from sales taxes, such as:
Most grocery food items are exempt from West Virginia sales tax. However, prepared foods, candy, soft drinks, and dietary supplements are 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.
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.
In most cases, SaaS and other cloud software services are considered taxable in West Virginia. However, certain custom software development services are exempt.
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.
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.
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.
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.
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.
West Virginia sales tax returns can be filed online through the 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
The penalties for late filing or inaccurate West Virginia sales tax returns are:
Criminal tax evasion charges may apply in cases of willful errors and omissions over specific liability, amounting to a 50% penalty.
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.
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 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.
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:
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.
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:
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