Income Tax in Wales

You pay Welsh Income Tax rates if you live in Wales. These rates have been set by the Welsh Government.

This guide is also available in Welsh (Cymraeg).

Rates and bands for 2024 to 2025

The table shows the tax rates you’ll pay in each band if you have a standard Personal Allowance of £12,570.

Band Taxable income Tax rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £125,140 40%
Additional rate over £125,140 45%

You’ll pay the same tax as the rest of the UK on dividends and savings interest.

See Income Tax rates for the current tax year.

Who pays the Welsh rates

You’ll pay the Welsh rates if you live in Wales.

You must update your address with HMRC if your main home is in Wales but you do not think they have your correct address.

If you move to or from Wales

You’ll only pay the Welsh rates if you live in Wales for longer than anywhere else in the UK during a tax year (6 April to 5 April the following year).

The new rates you pay will be backdated to the start of the tax year in which you moved. The tax taken from your wages or pension will be adjusted automatically so you pay the right amount across the whole tax year.

Update your address with HMRC if you move to or from Wales.

If you live in more than one home

If you have a home in Wales and one elsewhere in the UK, update your address to let HMRC know which is your main home.

Your main home is usually where you live and spend most of your time. It does not matter whether you own it, rent it or live in it for free.

Your main home may be where you spend less time, if that’s where:

  • most of your possessions are
  • your family lives, if you’re married or in a civil partnership
  • you’re registered for things like your bank account, GP or car insurance
  • you’re a member of clubs or societies

This might apply to you if you live away because of your work, for example you’re a lorry driver, an offshore worker or in the armed forces.

How you pay

You’ll pay tax at the Welsh rates through PAYE if you’re employed, or have it deducted by your provider if you’re getting a pension. HMRC will add a ‘C’ to the start of your tax code so that you pay the right rates.

If you fill in a Self Assessment tax return online for the 2023 to 2024 tax year, there’ll be a box for you to tell HMRC you pay the Welsh rates.

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