Taxes on Selling a House in West Virginia

Capital gains tax

You may have come across the term capital gains tax, but how does it apply when you sell a home?

If you sell your house for more than your adjusted cost basis, the profit may be subject to capital gains tax. Your adjusted cost basis generally includes the price you paid for the home, plus the cost of qualifying home improvements and certain other expenses. To figure out your capital gain, subtract your adjusted cost basis and eligible selling expenses from the sale price. You may not have to pay tax on the entire gain, or any of it, if you qualify for the IRS home sale tax exclusion.

For example, say you bought a home in West Virginia for $120,000 a few years ago, spent $30,000 on qualifying home improvements over the years, and sold it today for $230,000. After subtracting your $15,000 in eligible selling expenses and your $150,000 adjusted cost basis, your capital gain would be $65,000.

Depending on your circumstances, you may owe capital gains tax on some or all of that amount, unless you qualify for an exclusion or other tax break.

State capital gains tax

In West Virginia, any taxable profit from selling your home is usually included in your state income taxes. For 2026, the state income tax rates range from 2.11% to 4.58%, depending on how much taxable income you have.

Under West Virginia Code § 11-21-12, the state starts with your federal adjusted gross income and then makes certain state-specific adjustments. This means eligible homeowners can generally benefit from the federal home-sale exclusion when calculating their West Virginia income tax, too.

If you qualify, you can keep up to $250,000 in profit tax-free if you’re single, or up to $500,000 if you’re married and file taxes together. To get this tax break, you generally must have owned the home and lived in it as your main home for at least two of the five years before selling it.

Capital gains taxes

Meanwhile, at the federal level, capital gains are classified as short-term or long-term:

2026 short-term capital gains tax brackets

2026 long-term capital gains tax brackets

As mentioned, it’s possible to exclude your capital gains at the federal level, assuming you qualify. The maximum amount of capital gain that can be excluded is $250,000 for single filers, and $500,000 for a married couple that is filing jointly.

If you don’t meet all the requirements for the full exclusion, you may still qualify for a partial exclusion if you have to sell your home due to certain circumstances. These may include a job relocation, a health issue, or an unforeseen circumstance, like the death of a homeowner.

How to report your West Virginia capital gains taxes

• For your federal return, report your capital gains and losses by using the U.S. Individual Income Tax Return (IRS Form 1040) and Capital Gains and Losses, Schedule D (Form 1040).
• For your West Virginia capital gains, use IT-140.

Transfer tax

Transfer taxes are fees charged when a property changes ownership, and the money helps fund county services and other public programs. In West Virginia, the tax is based on the property’s value and is charged at $1.10 for every $500 of value, or part of $500, plus a $20 fee on transfers made for payment.

The seller usually pays the transfer tax, although the buyer may have to pay it in certain situations, such as when accepting a deed before the tax has been paid. Counties can also charge an additional transfer tax of at least $0.55 per $500, with the rate allowed to rise to $1.65 per $500. This means the total tax can vary depending on the county where the property is located.

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Property tax

Property taxes are yearly payments homeowners make based on the value of their property. It helps pay for public schools, roads, and other local services.

In West Virginia, how much you pay depends on your home’s assessed value and the local tax rates. According to the Tax Foundation, West Virginia’s effective property tax rate on owner-occupied housing value is typically 0.51%. Your property tax bill is usually issued starting July 15, with the first payment due by September 1 and the second due by March 1 of the following year.

If you sell your home, property taxes are often prorated at closing, which means you and the buyer split the bill based on how long each of you owns the property during that tax period. For example, if you sell your home halfway through the period, you’ll generally cover the taxes for the time you owned it, while the buyer covers the rest. The closing agent usually works out these amounts and lists them on your closing statement, so you can see who pays what.

The West Virginia Department of Revenue can provide more information about taxes specific to your city or town here.

Inheritance tax

West Virginia doesn’t have an inheritance tax, so you generally won’t owe state tax just for inheriting a home. But if you’re thinking of selling the property, check for any outstanding mortgage balances, unpaid property taxes, liens, or other debts that may need to be settled. When you sell an inherited home, you may benefit from a tax rule called a stepped-up basis.

This generally means your tax basis is reset to the home’s fair market value on the previous owner’s date of death, rather than what they originally paid for it. As a result, your capital gains are generally based on the difference between the home’s value when you inherited it and its eventual sale price, with eligible selling expenses and other adjustments taken into account.

This can reduce the capital gains tax you owe because you generally won’t be taxed on the increase in value that occurred during the previous owner’s lifetime. Consider consulting a tax professional to determine your adjusted cost basis and whether you owe any taxes when selling the property.

»Learn more: Want to know exactly how much you’ll walk away with from your home sale? Use our West Virginia Closing Cost Calculator to get a personalized estimate of your selling expenses and see your potential proceeds after closing.

Other selling expenses you might encounter in West Virginia

Title fees: Title fees typically include a title search and title insurance. Title insurance protects both the lender and the buyer against any issues with a home’s title, such as forgeries, an undiscovered will, or deed restrictions, that could arise during a title search.

Who pays for title insurance varies by state, and in West Virginia, the buyer typically covers this cost. However, this expense can be negotiated between the buyer and seller, so sellers should be prepared for the possibility of covering some or all of the title fees as part of the sale.

Settlement fees: These fees often cover around 1% of the home’s sale price. They’re charged by the title company, escrow company, or attorney handling the closing. Sometimes called escrow fees, they help cover the final paperwork and the handling of payments during closing. The exact costs can vary, and the buyer and seller may split some fees, depending on the agreement and local customs.

Agent commissions: In the past, sellers typically paid a total real estate commission of 5% to 6% of the home’s sale price, split between the listing agent and the buyer’s agent. However, the National Association of Realtors settlement changed how agent commissions are handled. Buyers now negotiate their agent’s fees directly, so sellers typically pay their listing agent’s commission, often around 2.5% to 3% of the sale price. The actual cost depends on the agreement, and sellers may still choose to help cover the buyer’s agent fees.

How to prepare for West Virginia real estate taxes

Real estate taxes don’t need to be intimidating, and they don’t need to catch you off guard. There are a number of ways you can get an idea of what you’ll owe before the time comes to sell your home, and HomeLight is here to help. Here are some final steps to consider:

• Know your home’s value: Use an online automated valuation model (AVM) tool like HomeLight’s free Home Value Estimator. Having a ballpark idea of what your home might be worth can help you calculate the potential capital gains from the home sale.
• Save the right documents: Know what tax documents you will need if you purchase or sell a home before doing so. Consult with your tax professional about the federal and state documents needed in West Virginia and the tax breaks you might qualify for.
• Find a top agent: An experienced real estate agent can guide you through the home sale process and help you understand your tax burden and maximize your profits. Our data shows that the top 5% of real estate agents across the U.S. sell homes for 10% more than the average real estate agent.

HomeLight makes it easy to find top real estate agents in your market. From our Agent Match to innovative programs like Simple Sale and Buy Before You Sell, we have you covered when it comes to selling your home, ensuring every transaction is simple, certain, and satisfying.

Editor’s note: This post is for educational purposes only and shouldn’t be construed as financial or tax advice. If you need assistance navigating taxes, reach out to an advisor.

Writer Joseph Gordon contributed to the original version of this post.

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