Gov. Patrick Morrisey announces a proposed tax relief package that includes an income tax cut on Monday, Jan. 5, 2026, in Charleston, West Virginia. (Photo courtesy of West Virginia Governor’s Office Patrick Morrisey)
Gov. Patrick Morrisey wants to speed up the state’s income tax cut and will ask lawmakers to champion the idea during the upcoming legislative session.
“I wanted to make it 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 effects of inflation,” the governor said Monday during a news conference at the state Capitol.
The legislative session begins January 14 in Charleston, West Virginia.
The Legislature was under former Gov. Jim Justice Reduce income tax increased by around 27% in recent years due to draft legislation and a trigger-based reduction plan.
The tax cut trigger formula – passed by the legislature in 2023 — set up a system where income tax cuts is triggered gradually if the state meets its revenue targets. It measures general revenue collections in a fiscal year compared to 2019. If the collections are before that year, the trigger for a tax cut is activated.
West Virginia did not meet the revenue target to trigger the tax cut last fiscal year, so Morrisey said he would work with lawmakers to pursue a cut. In the past, there have been some Republicans in the legislature reluctant to cut taxes without pulling the trigger.
Morrisey’s goal is to reduce personal income taxes by at least 5 to 10%.
“I have had discussions with House and Senate leadership and expressed my interest in working closely with them to get something passed,” he said.
The income tax is the largest source of revenue for the state of West Virginia.
Morrisey said he believes the state can provide “significant tax relief without sacrificing essential services” because of his administration’s work on agency budgets and cutting what he called unproductive spending.
His administration has already asked state agencies to cut their budgets by 2%
“I think we have the ability to deliver real tax relief that strengthens families, supports our businesses and continues to position West Virginia well in this backyard brawl,” Morrisey said. noting that Kentucky and Ohio have reduced their income tax rates.
Kelly Allen, executive director of the West Virginia Center on Budget and Policy, said the governor’s proposed tax cut was “a surprising development” after the state failed to pull the tax cut trigger.
“That means we can actually get ahead of the triggers and pass deeper income tax cuts, since his own six-year fiscal plan says we’re facing hundreds of millions of dollars in budget deficits in the coming years,” she said.
Allen estimated that a 5% to 10% income tax cut would result in West Virginians earning a dollar more per week.
“We have seen years of tax cuts that have failed to deliver promised growth, but have instead led to austerity and cuts to public schools, infrastructure and child care. Greater investments in these amenities and services are all things that would further improve affordability for ordinary West Virginians and strengthen our overall economy,” she said.
The state’s general revenue collections are about 5% above estimates – $128 million more than estimated, the governor said. The figure was determined by the strength of the personal income tax and the collection of consumer sales tax.
“We had a good end to 2025 and our fiscal projections are well above what we expected,” Morrisey said. “This is very positive news and I believe it is a direct result of the hard work our government has done over time.”
Morrisey also wants to expand the state’s tourism development tax credits to enhance the number of lodging properties to support the state’s growing tourism industry.
State Treasurer Larry Pack has called on lawmakers to eliminate the state income tax on overtime and tips. President Donald Trump’s “One Big Beautiful Bill.” contained provisions for no taxes on tips and overtime, valid through December 31, 2028.
“President Trump endorsed a federal policy that would allow workers to deduct overtime and qualified tips on their federal tax returns,” Pack said in one Press release in November.
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