by Asim Abbas
11 November 2026 
Welsh rates of income tax 2026/27: what Welsh taxpayers pay
Welsh rates of income tax 2026/27: what Welsh taxpayers pay
If you live in Wales, part of your Income Tax goes to the Welsh Government through the Welsh rates of income tax.
- Welsh rates are 10p in each band for 2026/27
- Total rates stay 20%, 40% and 45%
- Welsh taxpayers have a C prefix on their tax code
- Savings and dividends use UK rates
For 2026/27, the Welsh rates are set at 10p in each band, so Welsh taxpayers pay the same overall rates as people in England and Northern Ireland.
This guide explains how Welsh rates work, who counts as a Welsh taxpayer and what to check.
How Welsh rates work
UK Income Tax rates on non-savings income are reduced by 10p in each band for Welsh taxpayers, and the Welsh Government sets its own rates on top. Since Wales has kept its rates at 10p, the totals match the rest of the UK.
| Band | UK part | Welsh part | Total |
|---|---|---|---|
| Basic, £12,571 to £50,270 | 10% | 10% | 20% |
| Higher, £50,271 to £125,140 | 30% | 10% | 40% |
| Additional, over £125,140 | 35% | 10% | 45% |
Income tax calculator
Same rates for Welsh taxpayers.
Who is a Welsh taxpayer?
You’re a Welsh taxpayer if you live in Wales for most of the tax year, or your main home is in Wales. It’s not about where you work. Someone living in Newport and working in Bristol is a Welsh taxpayer.
Your tax code
Welsh taxpayers’ codes start with C, such as C1257L. If you live in Wales and your code doesn’t start with C, tell HMRC by updating your address.
Rhian lives in Swansea and earns £38,000. Her code is C1257L. She pays £5,086 Income Tax, the same as in England. £2,543 goes to the Welsh Government and £2,543 to the UK Government.
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Welsh rates only apply to non-savings, non-dividend income: wages, pensions, self-employment and rental profits. Savings and dividends are taxed at UK rates, including the new savings and property rates from April 2027.
Property income from April 2027
The UK Government plans separate property income rates from April 2027. How these interact with Welsh rates is set by the Welsh Government and legislation. We’ll update this guide when final.
Other Welsh taxes
- Land Transaction Tax instead of Stamp Duty
- Landfill Disposals Tax
- A visitor levy for overnight stays is being introduced by some councils
See GOV.UK guidance on Welsh income tax, and our Self Assessment and MTD services across Wales.
What should I do next?
If you live in Wales.
With HMRC.
And dividends.
Frequently Asked Questions
Do people in Wales pay more income tax?
Not in 2026/27. Welsh rates are 10p in each band, so totals match England.
What does a C tax code mean?
You are a Welsh taxpayer.
Am I a Welsh taxpayer if I work in Wales but live in England?
No. It depends on where you live.
Do Welsh rates apply to dividends?
No. Dividends and savings use UK rates.
Where does the Welsh part of the tax go?
To the Welsh Government.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
