West Virginia’s 2026 session concluded on Saturday with another five percent across-the-board cut to the personal income tax, completing an ambitious agenda driven by Governor Patrick Morrisey and dominant Republican majorities in the state House and Senate. The Mountaineer State’s top income tax rate will drop from 4.82% to 4.58% on January 1, 2026, surpassing Missouri’s 4.7% rate.
Even after enacting trigger-to-zero legislation in 2023 – one of the nation’s most effective triggers that ties state spending to inflation – West Virginia continued to cut income taxes. With hundreds of millions in surplus dollars pouring into the state treasury, Republicans chose to give much of that money back to the people of West Virginia rather than waste it on failing government programs. Under SB 392, the people will see $125 million back in their wallets. The legislature also conformed fully with the Working Families Tax Cut of 2025, matching the full benefit of federal tax cut on the state level.
“Families across our state are feeling the pressure of rising costs,” Governor Morrisey said. “Cutting taxes was one of my top priorities from day one. This tax relief means more money stays in the pockets of hardworking West Virginians to help pay for groceries, utilities, and the everyday expenses families are facing.”
New private projects are already on the horizon for the state, largely thanks to a more competitive tax landscape – especially with the certainty that comes from a trigger to zero. When deciding where to locate a factory or data center, or choosing a state to hire thousands of new employees, businesses invest for the long term. A stable tax environment in which state spending is limited and income taxes continue to ratchet down to zero is an optimal choice for companies looking to prosper.
However, more work remains to be done on the income tax in the years ahead. The legislature failed to deliver the Governor’s full proposed 10% income tax cut, spending that money elsewhere despite having enough cash in the bank to cut further. Even after this year’s achievement in SB 392, West Virginia remains relatively uncompetitive on the income tax, with Ohio moving from 3.5% to 2.75% flat this year, Kentucky enacting another 0.5 percentage point cut to a flat 3.5% after barely missing their own revenue trigger last year, and Pennsylvania’s flat 3.07% drawing capital to the north.
Yet, Republicans also delivered on a number of other important conservative policy proposals. Citizen-only voting will be on the ballot this November, allowing West Virginians to decide whether to enshrine that common sense policy into their Constitution and ensure that only U.S. citizens will retain the precious right to vote in state and local elections.
Government efficiency also had its day, with bills to eliminate dozens of unnecessary boards, commissions, and councils. Efforts like these ensure West Virginia does not overspend on bureaucrats, or suffocate ambitious individuals and businesses with the petty tyranny of outdated rules and regulations.
Portable benefits legislation also passed both chambers, ensuring that independent contractors, such as drivers for Doordash or Uber, freelance journalists or any other gig worker, can access employment-related benefits from companies who voluntarily provide them. That means nearly a hundred thousand West Virginians will be able to create a Portable Benefits account and potentially receive 401(k) contributions, healthcare or other benefits typically associated with traditional employment, while maintaining the scheduling flexibility and personal independence of being an independent contractor.
Perhaps most importantly, the HOPE Scholarship remained fully funded and operational, despite a sustained effort from the left to undermine West Virginia parents’ freedom to choose the right school for their child. Restricting access to this wildly successful school choice initiative, as the teachers unions demanded, would have left thousands of students in limbo – often with no choice but to return to a failing public school that’s not right for them. ATR commends Senator Patricia Rucker, Senator Brian Helton, Treasurer Larry Pack and the dozens of lawmakers who defended the HOPE Scholarship and prioritized future generations of West Virginians by keeping competition alive in the marketplace for education. State education dollars will stay with the child, where they belong.
With the 2026 session in the rearview, West Virginia taxpayers and families can look forward to a nine-figure, across-the-board tax cut and a series of conservative policy wins that make the Mountaineer State a more attractive place to work, live, and raise a family. As Virginia Governor Spanberger doubles down on dozens of tax increases, more and more Virginians will soon flood across the border – and take their dollars and businesses with them.