Welsh Income Tax Rates 2026/27
Last reviewed: April 2026
Welsh income tax (WRIT) uses the same rates as England for 2026/27. Welsh taxpayers have a 'C' prefix on their tax code and pay into Welsh Consolidated Fund rather than UK Consolidated Fund.
At a glance
- ✓Welsh income tax rates match England for 2026/27: 20% basic, 40% higher, 45% additional
- ✓Welsh taxpayers are identified by a 'C' prefix on their tax code (e.g. C1257L)
- ✓The Senedd can vary rates by up to 10p but has not done so
- ✓NI, savings interest tax, and dividend tax are the same as everywhere else in the UK
Welsh income tax bands 2026/27
| Band | Income range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571–£50,270 | 20% |
| Higher rate | £50,271–£125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
How Welsh rates of income tax work
Welsh rates of income tax (WRIT) came into force in April 2019. Under the system, the UK Government reduces the standard rate of income tax by 10p for Welsh taxpayers and the Senedd sets a Welsh rate to fill that gap. In 2026/27 the Senedd has set 10p Welsh rates, matching the UK rates exactly — so the effective rate is unchanged.
The mechanism works via your tax code. HMRC assigns a 'C' prefix (e.g. C1257L) to Welsh taxpayers. Your employer deducts the correct combination of UK and Welsh income tax automatically through PAYE — there is nothing extra you need to do.
Revenue from Welsh income tax flows into the Welsh Consolidated Fund and is used to fund Welsh Government services including the NHS Wales, schools and transport.
Could Welsh rates change?
Yes. The Senedd has the power to set Welsh income tax rates independently of Westminster, up to a difference of 10p per band. As of April 2026, it has chosen to mirror English rates, but this could change in future Welsh Budgets.
Unlike Scotland — which already charges higher rates — Wales has not yet used its rate-varying powers. However, the Welsh Government's fiscal framework review (2025) noted that devolved tax policy could become more active in future years as Wales's budget pressure increases.
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We update this page each April when Senedd rates are confirmed. If Welsh rates change, your employer will update your tax code automatically — but it is worth checking your payslip in April each year.
Frequently asked questions
Frequently asked questions
Do Welsh income tax rates differ from English rates?
For 2026/27 Welsh income tax rates are set at the same level as England: 20%, 40% and 45%. The Welsh Parliament (Senedd) has the power to vary rates by up to 10p, but has not used this power yet.
How do I know if I am a Welsh taxpayer?
If your main place of residence is in Wales on 6 April, HMRC treats you as a Welsh taxpayer. Your tax code will have a 'C' prefix (e.g. C1257L) to indicate Welsh rates apply.
Is Welsh income tax different from NI or council tax?
Welsh income tax (technically Welsh rates of income tax, or WRIT) only covers income tax on non-savings, non-dividend income. Council tax, NI and VAT are not devolved.
If I work in England but live in Wales, which rates apply?
Your residence determines your tax status, not where you work. If you live in Wales but work across the border in England, Welsh rates still apply to your employment income.