Relocating to Charleston, West Virginia: A retirement budget breakdown

West Virginia is phasing out the Social Security tax, with a complete elimination expected by 2026. In 2024, the tax was cut by 35%, and in 2025 by 65%. A 5% income tax cut for all residents also went into effect retroactively on January 1, 2026, resulting in rates of 2.11% on the first $10,000 of taxable income, rising to 4.58% on income exceeding $60,000. While pensions and IRA withdrawals remain taxable, residents aged 65 and older can exclude $8,000 of retirement income. The state sales tax is 6%, and Charleston’s combined rate is 7%. Homeowners 65 and older can claim a $20,000 homestead exemption and may qualify for a refundable income tax credit.

Charleston offers affordable housing. The median listing price is approximately $171,312, with prices in the South Hills area (ZIP code 25314) averaging $327,000. Property taxes are generally lower than in many larger cities. The cost-of-living index is 89.497, below the national average.

Here’s a sample monthly budget for retirees in Charleston:

| Monthly Item | Single | Couple | |---|---|---| | Property tax and insurance | $250 | $300 | | Home maintenance reserve | $200 | $250 | | Utilities and internet | $350 | $450 | | Food | $450 | $900 | | Medicare Part B | $202.90 | $405.80 | | Medigap and Part D | $275 | $550 | | Medical and dental out-of-pocket | $100 | $200 | | Transportation and car replacement | $450 | $600 | | Personal spending, gifts, travel | $500 | $900 | | Emergency reserve | $150 | $200 | | **Total** | **$2,927.90** | **$4,755.80**

To cover a gap of roughly $10,300 annually for a single retiree, a portfolio of approximately $257,000 is needed, assuming a 4% withdrawal rate. For a couple, the gap is about $18,600, requiring a portfolio of around $464,000. Delaying Social Security benefits can reduce these figures.

Retiring earlier, around age 60, requires significantly more planning, as it necessitates covering healthcare costs before Medicare eligibility. ACA premiums in West Virginia are among the highest in the nation, potentially requiring a portfolio of $1.03 million, including a separate fund to maintain subsidy eligibility.

Charleston offers attractive benefits like affordable housing, scenic views, and access to quality healthcare at CAMC, consistently ranked as the top hospital in West Virginia. Potential drawbacks include fewer direct flights and specialized medical care compared to larger cities, and challenging winter driving conditions.

For those considering a move, a visit during January is recommended to experience the local conditions firsthand.