What are the Welsh income tax rates for 2026/27?

Full answer

**Welsh rates of income tax (WRIT)** Since April 2019, the Welsh Government has had the power to set Welsh Rates of Income Tax (WRIT). The UK government reduces the UK rate by 10p for Welsh taxpayers, and the Welsh Government sets its own rate to replace those 10p. In practice, the Welsh Government has set WRIT at exactly the same level as the UK default every year — meaning Welsh taxpayers pay identical income tax rates to English taxpayers. **2026/27 income tax rates (Wales = UK default)** | Band | Rate | Income range | |---|---|---| | Personal allowance | 0% | Up to £12,570 | | Basic rate | 20% | £12,571–£50,270 | | Higher rate | 40% | £50,271–£125,140 | | Additional rate | 45% | Above £125,140 | **How to identify Welsh taxpayers** You are a Welsh taxpayer if your main place of residence is in Wales for the majority of the tax year. HMRC uses a "C" prefix on the tax code for Welsh taxpayers (e.g. C1257L). **What is different in Wales?** Although income tax rates are the same, there are some differences: - **Land Transaction Tax (LTT)**: replaces Stamp Duty Land Tax in Wales with different thresholds and rates - **Non-domestic rates (business rates)**: set by Welsh Government - **Landfill Disposals Tax**: devolved to Wales **Future variations** The Welsh Government has committed to aligning WRIT with UK rates for the 2026/27 year. Future Welsh Budgets could diverge — Wales could choose to raise or lower rates independently. Monitor Welsh Government Budget announcements each autumn.