Military Pensions are no longer subject to WV state income tax effective January 1, 2018. Those who have served in the Armed forces, reserves and National Guard members who retire in West Virginia will no longer have to pay state income tax on their military retirement. West Virginia now joins 18 other states with special tax situations for military and 14 states that exempt military pay entirely. We all want our vets taken care of and this will help. It sends a good message to our youth who consider miliary service. It also may create economic development by attracting retired vets into our state to live out there days truly retired or bring their skills to start and/or join businesses. “Taking this move will, in fact, be very positive at having more military people move into the area,” said Delegate Eric Nelson of Kanawha County.