West Virginia State Tax                                                                                  TSD-389 
                                                                                                      (Revised May 2020) 

WEST VIRGINIA WITHHOLDING REQUIREMENTS FOR SALES OF 
               REAL PROPERTY BY NONRESIDENTS 
This publication provides general information regarding compliance with the withholding requirements imposed by W. Va. 
Code § 11-21-71b. It is not a substitute for tax laws or regulations. 

GENERAL      • A real estate reporting person is required to withhold West Virginia income tax on sales or exchanges
INFORMATION    of West Virginia real property and associated tangible personal property when the seller is a
               nonresident individual or entity. Withholding is only required when the sale causes a change of
               ownership on the land books of a county assessor.
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DEFINITIONS  • The term “nonresident entity” is defined as an entity that is not formed under the laws of West Virginia
               and is not qualified or registered with the State Tax Commissioner to do business in West Virginia. If
               the entity holds a current West Virginia business registration certificate, no withholding is required.
             • The “real estate reporting person” is any of the following persons involved in the real estate
               transaction, in the order stated below:
                1. The person (including any attorney or title company) responsible for closing the transaction,
                2. The mortgage lender,
                3. The seller’s broker,
                4. The buyer’s broker, or
                5. Such other person designated in regulations prescribed by the U.S. Secretary of the Treasury
                (Treasury Regulation 26 CFR § 1.6045-4).
               The buyer of the property is not the real estate reporting person (and so is not required to withhold 
               personal income tax on the transaction) unless there is no attorney, mortgage lender or broker involved 
               in the sale. 
             • “Total payment” is defined as the total sales price paid to the transferor less:
                1. debts of the transferor secured by mortgage or other lien on the property being transferred
                that are being paid upon the sale or exchange of the property, and
                2. other expenses of the transferor arising out of the sale or exchange of the property and
                disclosed on a settlement statement prepared in connection with the sale or exchange of the
                property, not including adjustment in favor of the transferee.
               “Total payment” does not include adjustments in favor  of the transferor that are disclosed on a 
               settlement statement prepared in connection with the sale or exchange of the property. 
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AMOUNT TO BE • The “amount to be withheld” is either:
WITHHELD 
                1. 2.5% of the total payment to a nonresident individual or entity who sells or exchanges real
                property located in West Virginia, or
                2. 6.5% of the estimated capital gain derived from the sale or exchange.
             • The amount of tax withheld must be paid to the real estate reporting person before the deed or other
               instrument transferring title to the realty is presented for recordation or filing in the county clerk’s office.
               The withheld  amount must be remitted to the State Tax Commissioner within 30 days after it is
               withheld.
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EXCEPTIONS   • There are 6 statutory “exceptions” from withholding under this provision:
FROM 
WITHHOLDING    1. The transferor is a resident or a resident entity in West Virginia.
               2. If the transferor presents to the real estate reporting person, a certificate issued by the State Tax
               Commissioner stating:
                a. No tax is due from the transferor in connection with that sale or exchange of property; or

TSD-389 WEST VIRGINIA WITHHOLDING REQUIREMENTS FOR SALES OF REAL PROPERTY BY NONRESIDENTS
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                  b. A reduced amount of tax is due from the transferor in connection with that sale or exchange 
                  of property and stating the reduced amount that should be collected by the real estate reporting 
                  person before recordation or filing; or 
                  c. The transferor has provided adequate security to cover the amount required to be withheld. 
                  3. The transfer is pursuant to a foreclosure of a mortgage deed of trust or other lien instrument or 
                  pursuant to a deed in lieu of foreclosure. 
                  4. The transferor is a governmental agency. 
                  5. The property is the principal residence of the transferor. 
                  6.  The  property  is  transferred  pursuant  to  a  deed  or  other  instrument  of  writing  that  includes  a 
                  statement of consideration that indicates consideration payable for the transfer is zero. 
                • Applicable reporting forms can be found on our website at https://tax.wv.gov. 
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 ASSISTANCE AND •  For assistance or additional information, you may call a Taxpayer Service Representative at: 
 ADDITIONAL 
 INFORMATION      1-800-WVA-TAXS  
                  (1-800-982-8297) 
                  Or visit our website at: 
                  www.tax.wv.gov 
                  File and pay taxes online at: 
                  https://mytaxes.wvtax.gov  
                  Email questions to: 
                  taxhelp@wv.gov  
 
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