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 £ | ||||
|
Rate |
Tax rate % |
2023-24 & 2024-25 |
2021-22 & 2022-23 |
2020-21 & 2019-20 |
|
Personal allowance (tax-free band)* |
0 |
0-12,570 | 0-12,570 | 0-12,500 |
|
Basic rate* |
20 |
12,571-50,270 | 12,571-50,270 | 12,501-50,000 |
|
Higher rate* |
40 |
50,271-125,140 | 50,271-150,000 | 50,001-150,000 |
|
Additional rate** |
45 |
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:
- The basic, higher and additional UK rates will each be reduced by 10% to 10%, 30% and 35% respectively.
- 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: |
8% |
10% |
12% |
|
The Welsh basic rate will be |
18% |
20% |
22% |
|
The Welsh higher rate will be |
38% |
40% |
42% |
|
The Welsh additional rate will be |
43% |
45% |
47% |
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
Are you enjoying our content?
Thousands of accountants and advisers & their clients use rossmartin.co.uk as their primary TAX resource.
Register now to receive our FREE weekly SME Tax News update, discounts and briefings
