West Virginia sits in the eastern US, in the Appalachian Mountains, which is where its nickname "The Mountain State" comes from. Its neighbors are Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the north and Maryland to the northeast. Just over 1.8 million people live across 63,000 km². Charleston is both the capital and the largest city.
Plenty of companies already make the most of what West Virginia offers, whether they are starting up or expanding. World leaders such as Bombardier, Toyota, NGK Spark Plugs, Procter & Gamble and Northrop Grumman have chosen West Virginia as a location, and many other businesses have decided to expand their operations here.
The Mountain State has the highest economic growth rate in the country. Its business-friendly climate gives companies the advantages and opportunities they need to succeed.
A business-friendly climate
In the Tax Foundation's "2019 State Business Tax Climate Index", West Virginia ranks number 19 nationwide, ahead of every one of its neighbors. The Mountain State also boasts the third-highest cash surplus in the US.
Business-friendly laws make opening and running a company within the state's borders a sound investment for businesses large and small. The cost of doing business in West Virginia is among the lowest in the country: in CNBC's "America's Top States for Business 2018", the state ranks number 11 for business costs. Its electricity rates are the 14th lowest in the nation.
It is not only businesses that thrive on West Virginia's affordability. With a cost of living 16% below the national average, employees benefit too.
Here is our overview of the 10 most popular US states for foreign direct investment, with more location ideas such as Texas if you are looking to invest in the USA.
An outstanding location
From the Mountain State, around half of the US population and a third of the Canadian market are within a day's drive. This location gives businesses strategic access to the major metro areas without the costs and hassle of a big city.
Well-developed infrastructure lets businesses make full use of this central location. The new Heartland Intermodal Gateway transfers freight from road to rail; its completion in 2015 was a milestone for West Virginia's infrastructure. More than 670 kilometers of navigable waterways and eight commercial airports complement six major interstates.
Set up your company in West Virginia and the savings on distribution, energy and staff give you a competitive edge over businesses in the surrounding states.
A focus on training
Workforce training and development are a top priority in the Mountain State. West Virginia gives businesses and their employees an edge through respected, specialized training and continuing education programs.
One example is the Governor's Guaranteed Work Force Program (GGWFP). It gives new and expanding companies technical and financial support to train, retrain and upskill their employees. Since the program began, more than $54 million has gone to employers and almost 200,000 employees have received training.
Income tax in West Virginia
West Virginia levies income tax of 2.11 to 4.58%, depending on income (tax year 2026; rates have been cut several times since 2023). On top of that, you pay federal income tax.
Corporate tax in West Virginia
West Virginia levies corporate tax of 6.5%. On top of that, you pay federal corporate tax.
Sales tax in West Virginia
The US has no VAT along European lines. Instead, states, counties and municipalities levy a local sales tax on the sale of products (but not services).
Sales tax rate in West Virginia
West Virginia's state sales tax is 6%. Municipalities can add up to 1%, so the combined rate can reach 7%.
West Virginia nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
January 1, 2010
Included transactions:
Gross sales of tangible personal property or services into the state
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales or transactions
Sales/transaction threshold:
$100,000 or 200 transactions
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: A remote seller must register, start collecting West Virginia sales tax and apply it to sales made after the date the economic nexus threshold was crossed. For more information, see Remote sellers and West Virginia.
- Remote seller information
- Tax Department notice
West Virginia marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
Economic nexus threshold:
More than $100,000 in gross sales or at least 200 transactions in the state in the current or previous calendar year. Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the West Virginia State Tax Department and collect West Virginia sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You do not need to register, even if you cross the economic nexus threshold. Contact the West Virginia State Tax Department for more information.
- In-state multichannel sellers: You must register with the West Virginia State Tax Department and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the West Virginia State Tax Department for more information.
- Learn more here.
For all the states at a glance, see our overview of US states. Whether West Virginia or another state is the right home for your US company is covered in the guide Which US state is best for your company?, and you will find the basics in our guide to forming a company in the USA.
Our services for West Virginia:
Planning something in West Virginia? We form your US company in one of the six states we serve. Options and fees are under US company formation, and we answer your questions in a consultation.