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In a move to boost state revenue and address economic challenges, West Virginia Governor announced a new tax reform plan on Tuesday, May 12, 2026. The plan, which includes changes to income and sales taxes, is aimed at creating a fairer and more efficient tax system for residents.One of the key components of the plan is a proposal to increase the state's income tax rates for high-income earners. Under the plan, individuals earning over $250,000 a year would see their income tax rate rise from 6.5% to 7.5%. The Governor argued that this increase would help generate much-needed revenue for the state while ensuring that those who can afford to contribute more do so.In addition to changes in income taxes, the Governor also proposed a slight increase in the state's sales tax rate, from 6% to 6.5%. This adjustment is expected to provide a modest boost to state revenues while still remaining competitive with neighboring states.The tax reform plan also includes measures to streamline and simplify the tax code, making it easier for residents to understand and comply with their tax obligations. The Governor emphasized the importance of transparency and clarity in the tax system to foster trust and confidence among taxpayers.Furthermore, the plan includes provisions to support low-income and middle-income families, including an expansion of the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit for low- and moderate-income working individuals and families that helps alleviate poverty and incentivize work.Overall, the Governor expressed confidence that the tax reform plan would help West Virginia overcome its economic challenges and position the state for future growth and prosperity. The plan will now be presented to the state legislature for consideration and approval, with the Governor urging lawmakers to act swiftly in order to implement the necessary reforms.As West Virginia grapples with economic uncertainty and revenue shortfalls, the unveiling of this tax reform plan represents a significant step towards addressing these challenges and ensuring a brighter future for the state and its residents.