West Virginia Capital Gains Tax: 2026 Rules and Calculator

Short answer: West Virginia taxes capital gains as ordinary income at a top rate of 4.58% for 2026 (4.82% for 2025). On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).

West Virginia capital gains tax calculator

Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in West Virginia (federal, the 3.8% tax and West Virginia tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.

Example loaded. Change any number to run yours.

What you are sellingRental or investment real estateYour home (Section 121 exclusion)LandA business you work inPublicly traded stock or fundsCollectibles (art, coins, gold, cars)

Sale price

Selling costs (commission, title, legal)

Your adjusted basis

What you paid plus improvements, minus depreciation or depletion taken. Inherited: the value at the date of death.

Depreciation taken on the building

How long you have held itMore than 1 year1 year or less

State you will be taxed inAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Filing statusMarried filing jointlySingleHead of household

Other income this year (before deductions)

Years the buyer pays you over (1 = all now)

Expected sale date

West Virginia taxes capital gains as ordinary income at a top rate of 4.58% for 2026 (4.82% for 2025). The calculator applies the top rate to the whole gain. Source: West Virginia Tax Division, individuals (2026 income tax rate cut), checked October 13, 2026. Federal: 2026 brackets per IRS Rev. Proc. 2025-32 (0%, 15% and 20% on long-term gain; 20% above $613,700 of taxable income married filing jointly); 25% cap on building depreciation, IRC 1(h)(1)(E); 28% cap on collectibles, IRC 1(h)(4); 3.8% net investment income tax above $250,000 married or $200,000 single, IRC 1411.

Estimated tax on this sale (2026), example in West Virginia

$126,672

You keep $625,328 after selling costs and tax. The tax is 25.2% of your gain.

Your gain

• Sale price less selling costs$752,000
• Less your basis$250,000
• Your taxable gain$502,000
• Depreciation, taxed at up to 25%$110,000
• Long-term gain at 0%, 15% or 20%$392,000

The tax, line by line

• Federal income tax (incl. $2,700 AMT)$88,784
• Net investment income tax (3.8%)$14,896
• West Virginia tax$22,992
• Total tax$126,672
• You keep$625,328

All in one year vs spread over 8 years: tax of $126,672 against $106,920 when the buyer pays you over 8 years. You keep $19,752 more.

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These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.

Why now: the closing date and how the buyer pays you are set before closing, and they decide how much West Virginia and federal tax this sale costs.

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This is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.

How West Virginia taxes capital gains in 2026

West Virginia taxes capital gains as ordinary income at a top rate of 4.58% for 2026 (4.82% for 2025).

Selling West Virginia property while living elsewhere: West Virginia taxes a nonresident on gain from real estate and other property located in West Virginia, so selling West Virginia property from another state still means a West Virginia return.

Worked example (computed October 13, 2026)

A single owner selling a rental at the 2026 rate. A single filer in West Virginia sells a rental property for $800,000 with $48,000 of selling costs. Basis is $250,000 after $110,000 of depreciation, and other income is $90,000.

• Taxable gain: $502,000, of which $110,000 is depreciation taxed at up to 25%.
• All in one year (2026): $88,784 federal income tax, $14,896 net investment income tax and $22,992 West Virginia tax (4.6% of the gain): $126,672 in total, 25.2% of the gain.
• Spread over 8 years on a note: $106,920 of tax on the gain, so the seller keeps $19,752 more. Interest on the note is taxed separately.

What the calculator simplifies

The calculator applies the top rate to the whole gain. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.

Spreading a West Virginia sale over several years

On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.

Sources

• West Virginia Tax Division, individuals (2026 income tax rate cut)
• IRS Rev. Proc. 2025-32: 2026 federal brackets.
• IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).

Frequently asked

What is the capital gains tax rate in West Virginia for 2026?

West Virginia taxes capital gains as ordinary income at a top rate of 4.58% for 2026 (4.82% for 2025). Federal capital gains tax and the 3.8% net investment income tax come on top.

How much tax on a $800,000 sale in West Virginia?

In the example on this page, a single filer selling a rental property for $800,000 with a $502,000 taxable gain owes $126,672 in 2026: $88,784 federal, $14,896 net investment income tax and $22,992 West Virginia tax. Spread over 8 years, the tax is $106,920.

Do nonresidents pay West Virginia tax when they sell property there?

West Virginia taxes a nonresident on gain from real estate and other property located in West Virginia, so selling West Virginia property from another state still means a West Virginia return.