Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified West Virginia tax professional before filing.
West Virginia · USA · Short-term rental taxes
Short-Term Rental Taxes in West Virginia
Short-term rental taxes in West Virginia: 6% state sales tax, up to 1% municipal sales tax and a county or city hotel occupancy tax of up to 6% on stays under 30 days, plus state income tax cut to 2.11%–4.58% for 2026.
The 30-Second Answer
- Short term rental taxes in West Virginia start with sales tax: any rental of less than 30 consecutive days is taxable at the 6% state consumers sales tax, plus a municipal sales tax of up to 1% where the city imposes one.
- Hotel occupancy tax is local: counties and municipalities levy it at up to 6% of the room charge. The state Tax Division does not administer it — each county or city does.
- Registration is required: the Tax Division says you need a West Virginia business registration certificate for each rental location, even though platforms such as Airbnb collect the sales and hotel taxes on bookings they process.
- Income tax got cheaper in 2026: SB 392 cut rates 5% retroactive to January 1, 2026, to 2.11%–4.58% (4.58% above $60,000). File IT-140 by April 15, 2027 along with your federal Schedule E or C.
Deductions
What West Virginia STR Hosts Can Deduct
Ordinary and necessary rental costs reduce your federal taxable income, and the lower profit carries to your West Virginia IT-140.
Sales tax and hotel occupancy tax passed through to guests are not your income. If you also use the cabin personally, allocate expenses by rental vs. personal days (IRC §280A).
Filing Calendar
Key Dates & Filing Calendar
Sales tax runs monthly with the state, hotel occupancy tax follows your county or city, and income tax follows the federal calendar.
West Virginia's 2026 rate cut is retroactive to January 1, 2026. Withholding tables changed mid-year, so check whether your estimated payments now overshoot.
West Virginia Tax Division — Tax Filing Season; W. Va. Code §11-15-16
Federal & State Tax Treatment
Passive Rental vs. Active Business: Which Applies to Your West Virginia STR?
Your West Virginia income tax follows the federal result, so the Schedule E vs. Schedule C question matters for both returns.
Passive Rental — Schedule E
The default for most vacation rental owners
- Report rents and expenses on Schedule E (Form 1040) when your average stay is over 7 days, or you provide no substantial services.
- Net losses are passive; the $25,000 active-participation allowance phases out between $100,000 and $150,000 of modified AGI.
- Building depreciated over 27.5 years; no self-employment tax on net rent.
- Net rent is taxed by West Virginia at 2.11%–4.58% for 2026.
No income ceiling; passive-loss limits apply
Active Business — Schedule C
Only when you provide substantial services
- Use Schedule C when the average stay is 7 days or less and you provide substantial services (daily housekeeping, meals, concierge).
- Net profit carries 15.3% self-employment tax on earnings up to the 2026 Social Security wage base of $184,500 (2.9% Medicare above it).
- Losses can offset other income if you materially participate; the QBI deduction (up to 20%) may apply.
- West Virginia taxes the same net profit on Form IT-140; there is no separate state self-employment tax.
No ceiling; self-employment tax applies to net profit
Depreciation
Depreciation for West Virginia STR Properties
Depreciation turns the cost of your cabin or rental home into yearly deductions against rental income.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building or cabin | 27.5 years (straight-line) | Land and the wooded lot are not depreciable; allocate the purchase price. |
| Furniture, appliances, hot tubs | 5 years (MACRS) | Federal 100% bonus depreciation is permanent for property acquired after January 19, 2025. |
| Decks, driveways, fencing | 15 years (MACRS) | Land improvements; cost segregation can separate them from the building. |
Check the IT-140 instructions each year for any West Virginia modifications before relying on federal bonus depreciation for your state figure.
On sale, depreciation claimed is recaptured federally at up to 25% (unrecaptured §1250 gain); the gain also flows into your West Virginia return.
Occupancy Tax
West Virginia Lodging Tax: Sales Tax + Hotel Occupancy Tax
A West Virginia vacation rental stay of less than 30 days carries state sales tax, any municipal sales tax, and the local hotel occupancy tax.
Sales tax is administered by the state Tax Division; hotel occupancy tax is set and administered by each county or municipality under W. Va. Code §7-18, at no more than 6%.
Up to 13% combined
West Virginia Tax Division — TSD-435 and Hotel Occupancy Tax page; W. Va. Code §7-18-2, §8-13C-4
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects 6% state and 1% municipal sales tax plus all local hotel occupancy taxes | Report gross rent; keep Airbnb's tax reports to show the taxes were remitted |
| Vrbo / Booking.com booking | Marketplace facilitators collect sales tax, and hotel occupancy tax once over $100,000 or 200 transactions | Confirm each booking's tax lines; remit anything the platform did not collect |
| Direct booking | You collect and remit sales tax to the state and hotel tax to your county or city | Hold a business registration certificate and keep collected tax out of income |
Hotel occupancy tax is charged on the room consideration only, excluding sales tax and charges such as meals. Local rates on the Tax Division's contact list run from 3% to 6%.
Platforms
Airbnb Tax in West Virginia: Platform Collection
Marketplace facilitator rules push most lodging tax collection onto the platforms, while IRS reporting follows federal 1099-K thresholds.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K above $20,000 and 200 transactions; 1099-MISC for other payments of $2,000+ | Yes — 6% state sales tax, 1% municipal sales tax and all local hotel occupancy taxes | Earnings and tax reports in the host dashboard |
| Vrbo | Form 1099-K at the same federal thresholds | Required as a marketplace facilitator — confirm the tax lines on each booking | Payout summary in the owner dashboard |
| Direct bookings | No third-party reporting; you report all income | No — you collect sales tax and hotel occupancy tax yourself | Your own booking ledger |
Using Multiple Platforms?
Each platform applies the 1099-K threshold on its own, so spreading bookings across Airbnb, Vrbo and direct guests can mean no 1099-K — but all rent is still reportable on your federal return and IT-140.
DAC7 / OECD Reporting (EU Rule — Does Not Apply in West Virginia)
DAC7 is an EU directive and does not apply to West Virginia hosts. US platforms report host payouts to the IRS on Form 1099-K once 2026 payments exceed $20,000 and 200 transactions.
Airbnb Help Center — West Virginia taxes (airbnb.com/help/article/2579); West Virginia Tax Division — Hotel Occupancy Tax
Illustrative P&L: Schedule E vs. Schedule C
Example for a West Virginia cabin grossing $30,000 a year. Illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
Good records protect you if the IRS, the Tax Division or your county asks about your rental.
| Keep | How long | Why |
|---|---|---|
| Booking records (dates, nights, rent, fees) | At least 3 years after filing | Proves which stays were under 30 days and therefore taxable |
| Sales tax returns and hotel occupancy tax filings (direct bookings) | At least 3 years | State and county audits |
| Platform tax reports and 1099-Ks | At least 3 years | Shows the facilitator collected sales and hotel tax so you are not asked to pay it again |
| Business registration certificate | While you operate | Required for each rental location |
| Purchase documents and depreciation schedules | Until 3 years after you sell | Needed for basis and depreciation recapture |
Hotel occupancy tax is a county or city matter in West Virginia — keep the local filings separate from your state sales tax records.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational only, not tax or legal advice. Local hotel occupancy rates vary — verify with the West Virginia Tax Division, your county or city and a qualified tax professional.
- West Virginia Tax Division — TSD-435 Short-Term Leases and Rentals of Real Property — Under-30-day rule, 6% sales tax, municipal sales tax, hotel tax up to 6%, marketplace facilitators, business registration. https://tax.wv.gov/Documents/TSD/tsd435.pdf
- West Virginia Tax Division — Hotel Occupancy Tax — Administered by counties and municipalities; marketplace facilitator collection thresholds. https://tax.wv.gov/Business/HotelOccupancyTax/Pages/HotelOccupancyTax.aspx
- W. Va. Code §7-18-2 and §7-18-3 — Hotel occupancy tax up to 6%; definitions of hotel and 30-day exclusion. https://code.wvlegislature.gov/7-18-2/
- W. Va. Code §8-13C-4 — Municipal sales and service tax not to exceed 1%. https://code.wvlegislature.gov/8-13C-4/
- W. Va. Code §11-15-16 — Monthly sales tax returns due by the 20th. https://code.wvlegislature.gov/11-15-16/
- West Virginia Tax Division — 2026 Income Tax Rate Cut (SB 392) — 5% cut retroactive to January 1, 2026; rates 2.11% to 4.58%. https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx
- West Virginia Tax Division — Income Tax Filing Season — IT-140 due April 15; WV4868 extension to October 15. https://tax.wv.gov/Individuals/TaxFilingSeason/Pages/TaxFilingSeason.aspx
- Airbnb Help Center — Taxes Airbnb collects in West Virginia — 6% state and 1% municipal sales tax, local hotel occupancy taxes. https://www.airbnb.com/help/article/2579
- IRS — Understanding your Form 1099-K — Federal third-party reporting for payment platforms. https://www.irs.gov/businesses/understanding-your-form-1099-k
Questions
Frequently Asked Questions — West Virginia STR Taxes
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