The new year 2026 brings good news for residents of West Virginia. After a gradual reduction process that began in 2024, 2026 will start with a 100% exemption on the taxes that the state government applied to Social Security benefits. According to Governor Jim Justice, the goal of this measure is to curb the trend of older people moving to Florida and Texas, as well as to attract new residents to retire in this state. This means several thousand dollars a year for Social Security beneficiaries, depending on the case.
Relief for Social Security beneficiaries in West Virginia
West Virginia residents welcome the new year 2026 with good news for Social Security recipients. Although retirees with moderate or high incomes still faced state taxes on part of their benefits, this new year 2026 will change that completely. From now on, Social Security income will be fully exempt, regardless of income level, providing relief to beneficiaries. This decision, approved by Governor Jim Justice, has two main objectives:
- Prevent the exodus of retirees to other states, such as Texas or Florida, where the tax exemption was already 100%, allowing them to stretch their income.
- Attract new residents, making the state an appealing retirement destination and competing with neighboring states that already implement similar policies.
Goodbye taxes
The complete elimination of taxes on Social Security benefits has not happened all at once, but began in 2024, when the tax was reduced by 35%. Subsequently, in 2025, the percentage was increased to 65%, allowing this year, 2026, to reach 100% exemption. With this new measure, it is estimated that retirees will save from a few hundred to several thousand dollars a year, depending on their income level.
Frequently asked questions
Who really benefits from this new tax measure?
The full exemption benefits all residents of West Virginia who receive Social Security payments, regardless of their income level. Previously, retirees with moderate or high incomes still paid state taxes on a portion of their benefits, but starting in 2026, the relief is universal for all beneficiaries.
What has the process been like to reach the total elimination of this tax?
The elimination was not immediate; it was implemented gradually to ease the transition. The process began in 2024 with an initial 35% reduction, increased to 65% in 2025, and finally reaches 100% exemption at the beginning of this year, 2026.
What economic savings can retirees expect with this change?
The positive financial impact varies depending on each individual case, but it is estimated that beneficiaries will save anywhere from a few hundred to several thousand dollars a year. This amount directly depends on the retiree’s income level and how much they previously paid under the previous regulations.
