What West Virginia residents actually pay
West Virginia taxes ordinary income at a top marginal rate of 4.82%. RSU settlement value, NSO exercise spread, and ESPP discount income all count as ordinary wages for this purpose and flow through the state's normal brackets.
Long-term vs short-term treatment
Federal long-term rates cap at 20% (plus 3.8% NIIT for high earners) on gains held 12+ months past the basis-setting event. For RSUs, the basis-setting event is the vest date. For ISOs held through a qualifying disposition, the rules are stricter: two years from grant and one year from exercise.
Frequently asked
- Does West Virginia tax RSU income the same as wages?
- Yes. West Virginia treats RSU ordinary income as wages, taxable at the state's top marginal rate of 4.82%. Supplemental-wage federal withholding (22%, or 37% above $1M YTD) does not adjust for state withholding, so you often owe extra at filing.
- What happens if I exercise ISOs while living in West Virginia?
- West Virginia does not run a separate state AMT, so only federal AMT applies. You still need to model the bargain element carefully if you plan a cashless exercise-and-sell.
- I moved to West Virginia from another state. Who taxes my vesting RSUs?
- Most high-tax states (CA, NY, MA) source RSU ordinary income to workdays between grant and vest. If your grant pre-dates your West Virginia move, expect the old state to tax the portion of each tranche attributable to workdays earned there. West Virginia taxes the remainder.
- Can I reduce West Virginia taxes by timing my RSU sales?
- West Virginia taxes long-term capital gains at the same rate as ordinary income, so timing alone does not produce a state savings — only federal. Holding for 12 months still halves the federal rate on gains above basis.
Related
- RSU taxes — West Virginia
- ISO exercises and AMT — West Virginia
- QSBS — West Virginia
- Moving to or from West Virginia with unvested equity: trailing nexus rules — West Virginia
- RSU vesting schedules — West Virginia
- ESPP taxation — West Virginia
- NSO exercises and state tax — West Virginia
- 401(k) and retirement accounts — West Virginia
- Leaving West Virginia: how to cleanly break residency before a liquidity event — West Virginia
- West Virginia equity-comp overview