This is a freeview 'At a glance' guide to the Welsh rate of Income Tax.

What is the Welsh rate of Income Tax? What rate is Welsh Tax? 

Tax bands & rates 

These remain the same as the rest of the UK, excluding Scotland.

    Income band £

Rate

Tax rate

%

2021/22

2020/21

&

2019/20

2018/19

Personal allowance (tax -free band)            

 0  

0-12,570 0-12,500 0-11,850

Basic rate

20

12,570-50,270 12,500-50,000 11,850-46,350

Higher rate

40

50,270-150,000 50,000-150,000 46,350- 150,000

Additional rate

45

150,000+ 150,000+ 150,000+


Setting the Welsh Income Tax rate

The rate is calculated in two stages:

  • First, the basic, higher and additional UK rates will each be reduced by 10% to 10%, 30% and 35% respectively.  
  • Secondly, the Welsh Assembly will set a single rate that will be applied to each of the reduced rates above to give the Welsh rate.

If the rate is changed for future tax rates this would have an impact on the Welsh Income Tax rates as follows:

If the Welsh rate is set at:

8%

10%

12%

Welsh basic rate will be

 18%

 20%

22%

Welsh higher rate will be

 38%

40%

 42%

Welsh additional rate will be

 43%

 45%

 47%

 

Useful guides on this topic

Who is a Welsh Taxpayer
Who is a Welsh taxpayer?

Welsh Income Tax (subscriber guide)
From 6 April 2019, Wales set its own tax rates. The process was similar to the initial rules for Scottish Income Tax.


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