# Welsh income tax bands 2025/26

Content updated: 2026-07-04

Canonical HTML: https://moneyguide.org.uk/regional/wales-income-tax-bands/

## In short

Welsh taxpayers pay income tax on earned income at rates set by the Senedd within UK-wide bands. For 2025/26 the rates are 20%, 40% and 45% on the same thresholds as England. PAYE codes use a C prefix. Savings, dividend and National Insurance rates are UK-wide.

Welsh rates of income tax were devolved from April 2019. The Senedd can vary rates each year independently of England — check gov.wales before budgeting for a new tax year.

## Welsh income tax bands 2025/26

- Basic rate — 20% on £12,571 to £50,270
- Higher rate — 40% on £50,271 to £125,140
- Additional rate — 45% above £125,140
- Personal Allowance — £12,570 (UK-wide); tapers above £100,000

## C-prefix tax codes

HMRC identifies Welsh taxpayers through the address on the personal tax record. PAYE codes carry a C prefix (e.g. C1257L). Status follows your main home for the majority of the tax year, not your workplace.


## UK-wide taxes unchanged

- Dividend tax, savings income, National Insurance, Capital Gains Tax and Inheritance Tax
- Benefit amounts and State Pension (unless specifically devolved)
- Stamp Duty does not apply in Wales — Land Transaction Tax replaces it

## Do Welsh rates always match England?

Not necessarily — the Senedd sets rates each year. For 2025/26 they match, but future budgets may diverge.

## I work in England but live in Wales — which rates?

Welsh rates if Wales is your main residence for the majority of the tax year.

## Sources

- [GOV.WALES — Welsh rates of income tax](https://www.gov.wales/welsh-rates-income-tax)
- [GOV.UK — Income Tax](https://www.gov.uk/income-tax)

Information only — not regulated financial advice.