In a move aimed at increasing state revenue and addressing budget deficits, West Virginia lawmakers have passed new tax legislation on February 23, 2026. The new laws are expected to have far-reaching implications for both businesses and individuals in the state.One of the key changes in the new tax legislation is an increase in the state sales tax rate from 6% to 7%. This is projected to generate an estimated $150 million in additional revenue annually. The hike in sales tax is seen as necessary to offset declining revenues from other sources and to fund essential state services such as education, healthcare, and infrastructure.In addition to the sales tax increase, the new legislation also includes changes to the personal income tax system. Under the new laws, the income tax brackets have been adjusted, resulting in higher tax rates for high-income earners. This progressive income tax structure is expected to generate an extra $100 million in revenue each year.Furthermore, the new tax legislation includes provisions aimed at closing corporate tax loopholes and cracking down on tax evasion. These measures are intended to ensure that all businesses operating in West Virginia pay their fair share of taxes and contribute to the state's economic development.While the new tax laws have been met with some opposition from business groups and taxpayers, supporters argue that they are necessary to address the state's financial challenges and invest in critical areas. Governor Sarah Thompson, who championed the tax reform package, praised the legislation as a crucial step towards ensuring a sustainable and prosperous future for West Virginia.Overall, the passage of the new tax legislation represents a significant shift in West Virginia's approach to taxation and fiscal policy. It reflects a commitment to balance the state budget, promote economic growth, and invest in the well-being of its residents. As the new laws take effect, stakeholders will be closely monitoring their impact on state revenue and the overall economy.