Understanding West Virginia’s Transfer Tax: A Quick Guide
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
When selling a home in West Virginia, you’ll likely pay a real estate transfer tax, a fee charged when property ownership changes hands. While not the largest closing cost, it’s an expense sellers should plan for.
This guide breaks down West Virginia real estate transfer tax rates, who pays them, and potential exemptions. We’ll also cover additional state, county, and city transfer fees. Here’s what to expect if you’re selling a home in West Virginia.
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What are transfer taxes?
Real estate transfer taxes are state or local taxes applied when ownership of a property changes hands. According to the Federal Trade Commission, this tax is payable at the time a property’s title is transferred from one party to another. In other words, when you sell your home, the government imposes a fee on the legal transfer of ownership.
The amount owed depends on the property’s location and the specific tax rates set by the state, county, or city. These taxes help generate revenue for local governments and fund public services and infrastructure.
Who pays for transfer taxes?
In West Virginia, the seller is typically responsible for paying any real estate transfer taxes incurred as a part of a property sale.
What are the types of transfer taxes?
Transfer taxes will typically vary based on local guidelines but can generally be broken down into three categories — state, city, and county, depending on the state. Here’s a quick look at how it works in West Virginia. In West Virginia, the transfer tax is known as an excise tax.
State transfer taxes
West Virginia real estate transfer taxes are levied at a $1.10 per each $500 or fraction thereof on the value of the property changing hands.
County transfer taxes
Countywide, 10% of the collected transfer tax is collected by the county. This number will increase in subsequent years.
Other transfer fees
In addition to transfer taxes, there are possible fees to consider, such as from a homeowner’s association or another local neighborhood organization. Again, as these can vary heavily based on location, it’s important to consult a professional.
If you’re selling your home for sale by owner, consulting a professional might help with some of the finer points of the process and give you a better idea of what you can expect.
Are transfer taxes deductible?
Unfortunately, real estate transfer taxes cannot be deducted on your income tax return. However, they may help reduce the amount you owe in capital gains taxes when selling your home.
Capital gains refer to the profit made from selling a property, which is subject to federal taxation. The IRS allows sellers to classify transfer taxes as selling costs, meaning they can be deducted from the home’s final sale price. This adjustment lowers the taxable profit, potentially reducing the capital gains taxes owed.
Transfer tax exemptions
You may be eligible for certain transfer tax exemptions on your West Virgnia property. Below are some of them. For a complete list, refer to West Virginia’s Property Tax Exemptions website.
- The first $20,000 of assessed value is exempt for owner-occupied homes if the owner is 65 or older or permanently disabled.
- Household goods and personal effects used for non-commercial purposes are exempt.
- Agricultural property,, including livestock and farm products owned by the producer, is exempt.
- Government-owned property is exempt.
- IRC § 501(c)(3) organizations qualify for exemptions if the property is used solely for charitable purposes and not leased for profit.
- Property used for religious worship, including parsonages and related household goods, is exempt.
- Property held by colleges, academies, and free schools for educational, literary, or scientific purposes is exempt.
- Colleges, universities, and nonprofit foundations that support them are exempt if the property is used for educational purposes.
Estimating transfer taxes for your home sale
If you’re selling a home in West Virginia, understanding your closing costs—including West Virginia real estate transfer tax—can help you plan ahead. A quick way to estimate your potential earnings is by using HomeLight’s Net Proceeds Calculator. This tool factors in transfer taxes, agent commissions, and other selling costs to give you a clearer financial picture.
For a more precise breakdown of your transfer taxes and closing expenses, working with a top real estate agent is a smart move. In some cases, these costs may even be negotiable depending on the market. Discussing transfer taxes with your agent early on can help you determine if you have room to shift these expenses and maximize your net proceeds.
Editor’s note: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of West Virginia area tax services or attorneys should not be considered endorsements.
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