Welsh income tax bands 2025/26
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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.
Content updated: 2 min read
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
Common questions
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.