Nothing can get people nervous and anxious quite like the subject of taxes can. With this brief article on the basics of state tax in West Virginia, you will be able to get a better grasp on the subject without having to worry about complex terminology that you don't understand. The different types of state taxes include: income, sales, property, and estate.
Income tax is the main method that the state uses to collect state tax in West Virginia. There are many different tax brackets that determine how much you will have to pay. These brackets include: three per cent on the first $10,000 that you make, four per cent when your taxable income is between $10,001 and $25,000, 4.5 per cent when your earnings are in between $25,001 and $40,000, six per cent when your taxable earnings fall within $40,001 and $60,000, and 6.5 per cent if your taxable income is above $60,000. Tax returns for the state of West Virginia are due on April 15th each year.
It is important that you are well aware of the fact that state tax in West Virginia does include sales tax. In this state, sales tax on most products is six per cent; on other products such as food, sales tax is only four per cent. The fact that there are no municipal sales taxes in the state makes it easier to calculate your tax on each item you purchase. Sales tax on food used to be five per cent, but it was recently lowered in 2007. Take note that food and soft drinks from vending machines carry the standard six per cent sales tax.
Property tax is one of the more confusing aspects of the state tax in West Virginia. First of all, even though the taxes are levied by the state government, it is collected by the individual counties and most of the money goes to them. The primary beneficiary of the tax goes to the education system. The amount of the taxes that are to be collected is a subject that is determined by each individual county and municipality. The total tax rate consists of taxes from four different authorities: state, county, school, and municipal. There are also 3 different classes of property that will determine what taxes are paid. These include: personal, real, and intangible. There is no estate tax in West Virginia.