By Amelia Ferrell Knisely for West Virginia Watch
Gov. Patrick Morrisey wants to accelerate cuts to the state’s personal income tax, and he’ll ask lawmakers to get behind the idea during the upcoming legislative session.
“I wanted to make clear that one of our top priorities during the session will be tax cuts and tax simplification, and I think that’s important because West Virginians are still feeling the impact of inflation,” the governor said Monday during a press conference at the state Capitol.
The legislative session starts Jan. 14 in Charleston, WV.
Under previous Gov. Jim Justice, the Legislature cut personal income taxes by about 27% in recent years through bills and a trigger-based reduction plan.
The tax cut trigger formula – passed by lawmakers in 2023 – put a system in place where income tax cuts will be triggered gradually if the state meets revenue goals. It measures general revenue collections in a fiscal year compared to 2019. If collections are ahead of that year, it activates the trigger for a tax cut.
West Virginia didn’t meet the revenue goal in this past fiscal year to trigger the tax reduction, so Morrisey said he’ll work with lawmakers to move forward with a cut. In the past, some Republicans in the Legislature have been hesitant to cut taxes without hitting the trigger.
Morrisey’s goal is at least a 5 to 10% personal income tax reduction.
“I’ve had conversations with the House and Senate leadership, and I’ve expressed my interest in working closely with them on getting something that passes,” he said.
Personal income tax is West Virginia’s largest source of state revenue.
Morrisey said he believed the state could “deliver meaningful tax relief without sacrificing essential services” due to his administration’s work on agency budgets and cutting what he called inefficient spending.
His administration has already asked state agencies to cut their budgets by 2%
“I think we’re in a position to deliver real tax relief that strengthens families, supports our businesses and really continues to position West Virginia well in this backyard brawl effort,” Morrisey said, noting that Kentucky and Ohio have cut their income tax rates.
Kelly Allen, executive director at the West Virginia Center on Budget and Policy, said the governor’s proposed tax cut was “a surprising development” after the state didn’t hit the tax cut trigger.
“This is saying we can actually jump out ahead of the triggers and enact deeper income tax cuts as his own six year financial plan says we’re facing hundreds of millions of dollars in budget deficits in upcoming years,” she said.
Allen estimated that a 5 to 10% income tax cut would result in a $1 a week more for West Virginians.
“We’ve had years of tax cuts that have not brought promised growth, but instead have caused austerity and cuts to public schools, infrastructure and child care. Greater investments in those amenities and services are all things that would move the needle more on affordability for everyday West Virginians and strengthen our overall economy,” she said.
The state’s general revenue collections are about 5% above estimate – $128 million more than estimated, the governor said. The number has been driven by personal income tax strength and consumer sales tax collections.
“We had a good close to 2025 and our fiscal projections are significantly above where we thought they would be,” Morrisey said. “This is very positive news, (and) I think, a direct result of so much of the hard work that our administration has put in over time.”
Morrisey also wants to expand the state’s tourism development tax credit with the goal of increasing lodging to support the state’s growing tourism industry.
State Treasurer Larry Pack has urged lawmakers to eliminate state income tax on overtime and tips. President Donald Trump’s “One Big Beautiful Bill” included provisions for no taxes on tips and overtime effective through Dec. 31, 2028.
“President Trump championed a policy at the federal level that would allow workers to deduct overtime and qualified tips from their federal tax return,” Pack said in a news release in November.
West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.
