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

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

The Welsh Income Tax rate was introduced in 2019 and is set by the Welsh government.

It is payable by UK residents who have a close connection with Wales or meet any of the other conditions to be Welsh taxpayers. See Welsh Income Tax: Am I a Welsh Taxpayer?

Tax rates & bands 

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

    Income band £


Tax rate











Personal allowance (tax-free band)*           


0-12,570 0-12,570 0-12,500

Basic rate*


12,571-50,270 12,571-50,270 12,501-50,000

Higher rate*


50,271-125,140 50,271-150,000 50,001-150,000

Additional rate**


125,140+ 150,000+ 150,000+

* Finance Act 2023 freezes the personal allowance, basic rate and higher rate bands to 5 April 2028.

**The additional rate band reduced to £125,140 from 6 April 2023. 

Setting the Welsh Income Tax rate

The Welsh Income Tax rate is calculated in two stages:

  1. The basic, higher and additional UK rates will each be reduced by 10% to 10%, 30% and 35% respectively.  
  2. 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 in future this would impact Welsh Income Tax rates as follows:

If the Welsh rate is set at:




The Welsh basic rate will be




The Welsh higher rate will be




The Welsh additional rate will be





Useful guides on this topic

Welsh Income Tax: Am I a Welsh Taxpayer?
Who is a Welsh taxpayer? What if I move across the border during the tax year? What about non-UK residents who work in Wales?

Welsh Income Tax (subscriber guide)
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax

Squirrel ad

Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter