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Income tax in Wales

Incomes taxes have been devolved to the Welsh government since 6 April 2019. Find out how much you'll pay.

In this article
What is Welsh income tax? Use our income tax calculator for 2019-20 What are the Welsh tax bands and rates in 2019-20?
Who pays Welsh tax rates? How do I pay income tax in Wales?

What is Welsh income tax?

This is the first tax year that income tax in Wales has been devolved. 

HMRC still collects income tax, but the government in Westminster will no longer receive all of it.

The basic, higher and additional rates of income tax have been reduced by 10p by the UK government - instead, that 10p and any additional payments, go to the Welsh government.

In this guide, we outline what the Welsh tax bands and rates are, and who needs to pay Welsh income tax. 

  • Get a head start on your 2018-19 tax return with the Which? tax calculator. Tot up your tax bill, get tips on where to save and submit your return direct to HMRC with Which?.
     

Use our income tax calculator for 2019-20

Find out how much income tax you'll pay using our calculator. As the rates in Wales are currently the same as in England and Northern Ireland, you don't need to make any extra country selections.

What are the Welsh tax bands and rates in 2019-20?

The table below shows the Welsh rates of income tax for 2019-20.

The tax bands and thresholds are the same as those for England and Northern Ireland - the only difference is that a portion of the tax goes directly to the Welsh government.

If you earn more than £100,000, your personal allowance will start to reduce - and after £123,700, you won't benefit from any personal allowance at all.

Tax rate Earnings Rates
Basic rate £12,500-£50,000 20%
Higher rate £50,000-£150,000 40%
Additional rate Above £150,000 45%

Who pays Welsh tax rates?

If your main home is in Wales, you will pay Welsh rates of income tax. If you move home, either to or from Wales, you will pay the Welsh rate if you live in Wales for more than half of the year.

Taxes for people with multiple properties are dependent on your main home, where you live and where you spend most of your time. 

Instances where your main home could still be where you spend less time:

  • that's where your family lives, if you are married or in a civil partnership
  • that's where most of your property is
  • that's where you've registered for things such as your GP, car insurance or your bank account.

How do I pay income tax in Wales?

If you complete a self-assessment tax return, there will be a box you need to select to indicate that you pay the Welsh rate. 

If you pay taxes on earnings, or a pension through a Pay As You Earn scheme (PAYE), your tax code will begin with a C.

Find out more: Understand your tax code - find out what your tax code means

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