$30,000 pension
$2,000
subtracted from West Virginia income.
$30,000 pension, $1,500 other capped income
$500
subtracted from West Virginia income (the cap is shared).
Our engine on the 2025 rule. W. Va. Code §11-21-12(c)(5), (8), (9); WV IT-140 Instructions 2025, pp. 20, 26, Line 33 Other Retirement Modifications; WV Schedule M 2025, p. 3, line 33
- West Virginia lets you subtract up to $2,000 a year of taxable West Virginia TRS income (shared with PERS and federal retirement income), at any age.W. Va. Code §11-21-12(c)(5); WV IT-140 Instructions 2025, p. 26, Line 33
- At 65 or older you may subtract up to $8,000 of income from any source, reduced by the other retirement subtractions you claim.W. Va. Code §11-21-12(c)(9)
- Social Security benefits are fully subtracted from West Virginia income from tax year 2026.W. Va. Code §11-21-12(c)(8)
The rules
West Virginia lets you subtract up to $2,000 a year (per person) of taxable West Virginia TRS, West Virginia PERS and federal retirement income combined, regardless of age. People 65 or older (or permanently disabled) may subtract up to $8,000 of income from any source, less other listed retirement modifications. Social Security benefits are fully subtracted from 2026 (100% below $100,000 joint / $50,000 single federal AGI; 65% above it in 2025). W. Va. Code §11-21-12(c)(5), (8), (9); WV IT-140 Instructions 2025, pp. 20, 26, Line 33 Other Retirement Modifications; WV Schedule M 2025, p. 3, line 33
West Virginia TRS funds and benefits are exempt from municipal tax. W. Va. Code §18-7A-30
Your pension amount is set by the formula and doesn't rise on its own (see COLA), so a fixed subtraction is worth the same each year.
Federal tax
CPRB withholds federal income tax on request or as required by law. 162 CSR 4 § 6.1.2, p. 7
You may read that West Virginia is phasing out tax on teacher pensions. In the current law and the 2025 instructions, the phased exemption is for Social Security benefits. The West Virginia TRS subtraction is still capped at $2,000. W. Va. Code §11-21-12(c)(5), (8); WV IT-140 Instructions 2025, p. 26, Line 33
See also Social Security.
Questions
Does West Virginia tax West Virginia TRS pensions?
Yes, mostly. You can subtract up to $2,000 a year of West Virginia TRS income (shared with West Virginia PERS and federal retirement income) at any age. At 65 or older a larger subtraction may apply.
Is West Virginia phasing out tax on teacher pensions?
Not that we found. The phase-out in West Virginia law is for Social Security benefits, which are fully subtracted from 2026. The West Virginia TRS subtraction is still capped.
Is my pension taxed by my city?
No. West Virginia TRS benefits are exempt from municipal tax.
Source: West Virginia TRS Tier I brochure (CPRB), September 2023. Also: WV IT-140 instructions (2025); WV Schedule M (2025); W. Va. Code §§ 11-21-12, 18-7A-30; CPRB rule 162 CSR 4. Last reviewed .