Does West VirginiaTax Tips & Overtime After the OBBBA?
West Virginia has not conformed to the federal deductionfor the federal OBBBA tip and overtime deductions. Here's what that means for your paycheck.
Quick answer
West Virginia has a state income tax (about 6.5% used for estimates) and currently has not conformed to the federal deduction. That means you may still owe state income tax on your tips and overtime even though your federal tax is reduced.
Tips deduction
Not conformed
Overtime deduction
Not conformed
How OBBBA tips & overtime work in West Virginia
The OBBBA is a federal deduction: eligible workers can deduct up to $25,000 of tips and $12,500 of overtime premium ($25,000 if married filing jointly) from federal taxable income through 2028. Whether West Virginia follows suit depends on state conformity. FICA (Social Security and Medicare) applies everywhere. Learn more about the tip deduction and the overtime deduction.