West Virginia tips tax calculator and $2.62 cash wage
West Virginia’s own wage law applies only to employers with six or more employees — $8.75 with a 70% tip credit — and its income tax keeps tips taxable after HB 4347 stalled in committee.
A bill that never left House Finance
HB 4347 (2026) would have added a Schedule M modification for tips; its last action was referral to the House Finance Committee on January 15, 2026. West Virginia starts from federal AGI, and the Tax Division’s 2025 IT-140 instructions contain no tips subtraction, so qualified tips stay in West Virginia income for 2025 and 2026.
West Virginia figures
| Employers with 6 or more employees | $2.62 / $8.75 |
|---|---|
| Smaller employers covered by the FLSA | $2.13 / $7.25 |
| In force | July 1, 2026 |
| Next change | none scheduled |
| Tipped threshold | Not specified |
| Tips on the 2025 return | tips stay taxable in this state. West Virginia starts from federal AGI; no tips modification existed for 2025. Source: West Virginia Legislature |
| Tips on the 2026 return | tips stay taxable in this state. HB 4347 (tips modification) was referred to House Finance on Jan. 15, 2026 and not enacted. Source: West Virginia Legislature |
Six-employee threshold
For covered employers the state minimum is $8.75 and the tip credit may be up to 70% of it, leaving a $2.62 cash wage. Smaller employers covered by the FLSA follow federal rules instead: $7.25 and $2.13.
A Morgantown server
Federal savings on $13,000: $1,390; West Virginia taxes the tips. At a large employer, 30 hours at $2.62 plus $120 of tips leaves $64 owed to reach $263.
Check a West Virginia workweek
Where these figures come from
- West Virginia Tax Division · West Virginia Division of Labor
- HB 4347 (2026) bill status — last action: to House Finance 01/15/26 (2026)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
Federal rules: how the deduction works. Nearby: Ohio, Pennsylvania, Maryland, Virginia, Kentucky.
Figures verified against primary sources on