Overlooking the mandatory nonresident shareholder withholding. If your S corp has any shareholder who is not a West Virginia resident, the ENTITY must withhold and remit West Virginia tax on that shareholder's share of West Virginia-source income at the top marginal rate — this is an entity obligation, not something the shareholder can simply handle on a personal return, and the entity is liable if it fails. Making the EPT-100 election is the usual way to avoid it.
Recognized automaticallyPTET available
S-corp election in West Virginia
In short
No franchise or net-worth tax (West Virginia's business franchise tax was fully phased out). Mandatory nonresident withholding at the top individual rate, plus an optional elective pass-through entity tax at the same rate.
Does West Virginia recognize the federal S election?
West Virginia automatically recognizes your federal S election — there is no separate West Virginia S-corp election. Your S corp files Form PTE-100, the West Virginia S Corporation & Partnership (Pass-Through Entities) income tax return. Income passes through to shareholders. If you have nonresident shareholders, the entity must withhold and remit West Virginia tax on their share. Optionally the entity may elect the West Virginia pass-through entity tax on Form EPT-100 as a SALT-cap workaround.
Tax the entity still owes
THE 2026 RATE IS NOW CONFIRMED FROM STATUTE. W. Va. Code § 11-21-4j, "Rate of tax — Taxable years beginning on and after January 1, 2026", sets the top marginal individual bracket at 4.58% (e.g. for single/joint/HOH/surviving-spouse filers: a fixed dollar amount "plus 4.58% of excess over $60,000"; for married filing separately, "plus 4.58% of excess over $30,000"; and for non-grantor trusts administered by licensed private trust companies "the stated percentage shall be changed to 4.58 percent"). The section expressly states it "shall apply for all taxable years beginning on and after January 1, 2026, and shall be in lieu of the rates of tax specified in § 11-21-4i." Enacted by SB 392 (signed March 31, 2026; effective June 12, 2026, retroactive to January 1, 2026). ELECTIVE PTE TAX (Form EPT-100): the EPT-100 instructions state "The elective tax is equal to the top marginal rate for individuals. For Tax Year 2025, the rate is 4.82%." Applying that same formula to the § 11-21-4j top rate gives 4.58% for tax year 2026. NONRESIDENT WITHHOLDING (Form PTE-100): the PTE-100 instructions state "The withholding rate on West Virginia source income for 2025 is 4.82% (§11-21-71a(b)(1))," and the return computes nonresident and nonresident-composite tax by multiplying by.0482. Applying the same top-marginal-rate linkage gives 4.58% for tax year 2026. DUE DATE: the PTE-100 and EPT-100 follow the federal S corporation due date, the 15th day of the third month after the close of the taxable year (March 15 for calendar-year filers). LATE PAYMENT: addition to tax of one-half of one percent per month; interest at an adjusted rate set by the Tax Commissioner for six-month periods.
Registering for payroll
NOT FULLY PRIMARY-SOURCE VERIFIED. An S corp paying wages must register for West Virginia income tax withholding with the WV Tax Division and for unemployment insurance with WorkForce West Virginia; both are typically handled through the West Virginia One Stop Business Portal (business4.wv.gov). A West Virginia Business Registration Certificate is also required. WV withholding form numbers (WV/IT.
Annual filings
Form PTE-100, West Virginia S Corporation & Partnership (Pass-Through Entities) Income Tax Return — with Schedules A, B, D, PTE-100TC, PTE-100APT, Schedule SP, and K-1/K-1C to shareholders. Due the 15th day of the third month after the close of the taxable year (March 15 for calendar-year filers). Form EPT-100, Electing Pass-Through Entity tax return — only if the entity makes the elective PTE tax election; same due date. Nonresident withholding is remitted with the PTE-100 unless the EPT-100 election covers it. SEPARATELY, an annual report is filed with the West Virginia Secretary of State — commonly cited as due June 30; see caveats, this was not fully verified.
Pass-through entity tax
Yes. West Virginia offers an elective pass-through entity tax on Form EPT-100 as a SALT-cap workaround. The statute ties the elective tax to the top marginal individual rate, so it is 4.82% for tax year 2025 and 4.58% for tax year 2026. Electing avoids the separate nonresident withholding on the income covered by the election.
The mistake owners make most often in West Virginia
Filing your federal Form 2553
Businesses operating in West Virginia send Form 2553 to the IRS Kansas City service center — fax 855-887-7734. Full address and filing checklist for West Virginia.
Frequently asked questions
Does West Virginia require a separate S-corporation election?
No. West Virginia does not require a separate state election. West Virginia automatically recognizes your federal S election — there is no separate West Virginia S-corp election. Your S corp files Form PTE-100, the West Virginia S Corporation & Partnership (Pass-Through Entities) income tax return. Income passes through to shareholders.
What tax does an S corporation pay in West Virginia?
No franchise or net-worth tax (West Virginia's business franchise tax was fully phased out). Mandatory nonresident withholding at the top individual rate, plus an optional elective pass-through entity tax at the same rate.
Where do I file Form 2553 from West Virginia?
With the IRS Kansas City service center. Fax 855-887-7734, or mail to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999.
What is the most common S-corp mistake in West Virginia?
Overlooking the mandatory nonresident shareholder withholding. If your S corp has any shareholder who is not a West Virginia resident, the ENTITY must withhold and remit West Virginia tax on that shareholder's share of West Virginia-source income at the top marginal rate — this is an entity obligation, not something the shareholder can simply handle on a personal return, and the entity is liable if it fails. Making the EPT-100 election is the usual way to avoid it.
Compare with other states: Wisconsin, Wyoming, Alabama, Alaska, Arizona, Arkansas.
Sources
File your Form 2553 correctly
Scorply completes your federal election and includes a West Virginia guide in your packet, so you know exactly what else you owe here.
Start my Form 2553Researched from official West Virginia sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.