The Final Budget 2026-27 for Wales was published on 20 January 2026 and approved by the Senedd on 27 January 2026, ultimately passing its proposals. It had been announced by Mark Drakeford, Cabinet Secretary for Finance and Welsh Language, on 14 October 2025.
Welsh Budget 2026-27: At a glance
Wales can set its own:
- Welsh Rates of Income Tax (WRIT).
- Landfill Disposals Tax (LDT).
- Land Transaction Tax (LTT).
- Non-Dometic Rates (NDR).
These taxes fund around 20% of the Welsh government's spending and will contribute around £5.5bn to the Welsh Budget in 2026-27.
This year, the Welsh Budget was presented in two stages, with the outline draft Budget on 14 October setting out the main building blocks, such as funding, taxation decisions and departmental allocations.
On 3 November, the Welsh government published its departmental spending plans.
The Final Budget was published on 20 January 2026.
- The Final Budget makes additional allocations of £400 million. £300 million goes to local government and the NHS. A further £100 million will support Welsh government priorities. including bus services, apprenticeships, further education, flood prevention and maintaining school buildings.
Welsh Rates of Income Tax (WRIT)
- No changes to WRITs are proposed for 2026-27.
- Rates and allowances remain the same as those in England and Wales.
- The Senedd was granted the ability to set separate Welsh rates for property income in the UK Budget on 26 November 2025. The Welsh Final Budget confirms that these changes will not be made until the year beginning 6 April 2027.
Land Transaction Tax (LTT)
It is proposed that:
- Residential and non-residential rates and thresholds will remain unchanged for 2026-27.
- A new 'equalisation' rule will be introduced to the Multiple Dwelling Relief (MDR) regime.
- This will create per-dwelling parity between multiple-dwelling and single-dwelling transactions liable to the higher residential rates.
- The existing MDR minimum tax rule rate will increase from 1% to 3%.
- A new refund rule for the higher residential rates of LTT will be introduced.
- This will apply where a private landlord buys a dwelling and then leases it to a local authority in Wales through the Leasing Scheme Wales.
- The main residential rates of LTT will continue to apply to the transaction.
- The effectiveness of the current registered social landlords' relief will be reviewed, and the Welsh Government will consider whether it should be replicated for local authorities in Wales when they buy property for social housing purposes.
See Land Transaction Tax (LTT)
Landfill Disposals Tax (LDT)
It is proposed that from 1 April 2026, LDT rates will be:
- Standard rate: £130.75 per tonne.
- Unauthorised disposal rate: £196.15 per tonne.
- Lower rate: £8.65 per tonne.
The rate increases are based on RPI forecasts except for the lower rate.
- This has been subjected to a larger increase to avoid waste tourism between England and Wales.
Non-Domestic Rates (NDR)
- Final phases of the reform programme will be implemented on 1 April 2026.
- A lower multiplier for small to medium-sized retailers will be introduced.
- The multipliers from 2026-27 will be:
- Standard multiplier: 50.2%.
- Lower retail multiplier: 35.0%.
- Higher multiplier: 51.5%.
- Transitional relief will be provided to ratepayers whose liability increases by more than £300 following the April 2026 revaluation.
- Any such increases will be phased in over two years.
- Eligible ratepayers will pay 33% of their additional liability in the first year and 66% in the second year, before reaching their full liability in the third year.
- Baseline budgets for the development and administration of the local taxes (NDR and council tax) have been increased by 2%.
- The Final Budget also notes the UK government's intention to introduce additional support for pubs in England.
- It says that once details are available, consideration will be given to whether additional support is also needed in Wales.
Useful guides on this topic
Welsh Income Tax (subscriber guide)
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax.
Welsh LTT Rates
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
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