Self-employed taxes and LLC costs in West Virginia, 2026
West Virginia cut its income tax again for 2026, yet it still gives no standard deduction, only a $2,000 personal exemption.
Total tax on this income in 2026
$20,529
Put aside 24% of each payment · $5,132 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| West Virginia income tax | $2,729 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 24.2% |
With an S corp election and a $34,000 salary, about $3,485 less tax (check it).
Computed by Radif Partners from IRS and West Virginia agency documents read on October 15, 2026 · How we calculate
West Virginia's 2026 income tax runs from 2.11 % to 4.58 % in five brackets, the top one starting at $60,000, after another rate cut passed in 2026. There is no standard deduction: the only allowance is a personal exemption of $2,000, or $4,000 for a couple, and the brackets are the same for single and joint returns. A single freelancer with $75,000 of profit owes about $2,303 to the state and $17,798 in all with federal income tax and self-employment tax. An LLC costs $100 to form and $25 for each annual report, with no franchise tax, and from July 2026 a long-standing LLC can switch to a report every two years. Many cities add a business and occupation tax on gross receipts. West Virginia follows the S election; at $120,000 of profit and a $50,000 salary it saves about $4,990, after $257 of state unemployment tax.
West Virginia at a glance, 2026
| LLC filing fee | $100 |
| Annual Report | $25 a year |
| Income tax | 2.11 % to 4.58 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $17,798 in all, $2,303 to West Virginia |
The state has been lowering its income tax in steps, and the 2026 schedule in W. Va. Code § 11-21-4j takes the top rate to 4.58 %, from 4.82% in 2025. What did not change is the base. West Virginia starts from federal adjusted gross income and subtracts only a personal exemption of $2,000 per person (§ 11-21-16). A freelancer earning a modest profit therefore pays from nearly the first dollar: on $35,000 of profit, the state takes about $807.
Your set-aside rate by state
Set aside in West Virginia
23%
| Per quarter | $3,768 |
| West Virginia income tax | $1,883 |
Brackets that ignore marriage
The thresholds at $10,000, $25,000, $40,000 and $60,000 are identical for a single person and a married couple. Two spouses who each run a business and file jointly reach the top bracket on combined income, where they would stay lower filing alone. Married filing separately exists, but it changes other parts of the federal return, so it deserves a CPA's look before choosing. The state income tax comparison shows West Virginia beside its neighbors.
LLC upkeep and the new biennial option
An LLC is organized for $100 under § 59-1-2 and files its annual report between January 1 and July 1 of each year following the year of formation, for $25. From July 1, 2026, § 31B-2-211 lets an LLC with five years of timely reports elect a biennial report at $50, the same cost spread over two years with half the filings. There is no franchise tax on LLCs. Five years of state fees come to $225.
Municipal B&O on gross receipts
The cost that surprises newcomers is local. Cities may levy a business and occupation tax on gross income, authorized by W. Va. Code § 8-13-5, and many do, including Charleston. It is charged on receipts, not profit, at rates each city sets by category of business, and it requires a city registration. A freelancer working from home inside city limits should ask the city finance office before the first invoice. The local business taxes page explains these receipts taxes.
Payroll and the entity-level election
An LLC taxed as an S corporation registers for unemployment insurance: new employers pay 2.7 % on the first $9,500 of each employee's wages. Partnerships and S corporations can also elect West Virginia's pass-through entity tax at the top individual rate, 4.58 % for 2026, under § 11-21-3a; the election is annual and irrevocable, and disregarded entities cannot make it. The LLC vs S corp comparison counts the unemployment tax when you select the state.
West Virginia income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $10,000 | 2.11 % | $0 to $10,000 | 2.11 % |
| $10,000 to $25,000 | 2.81 % | $10,000 to $25,000 | 2.81 % |
| $25,000 to $40,000 | 3.16 % | $25,000 to $40,000 | 3.16 % |
| $40,000 to $60,000 | 4.22 % | $40,000 to $60,000 | 4.22 % |
| over $60,000 | 4.58 % | over $60,000 | 4.58 % |
City and county taxes on business income in West Virginia
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| West Virginia municipalities (general) | Municipal business and occupation (B&O) tax on gross income | 1% | varies by city |
| Charleston | City B&O tax, Service/All Other Businesses | 1% | gross income from services rendered in the city or directed from a city location |