# What is Welsh income tax?

> Quick answer · Last updated 4 July 2026

Canonical HTML: https://moneyguide.org.uk/answers/what-is-welsh-income-tax/
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## In short

Income tax on earned income set by the Senedd within UK-wide bands — Welsh taxpayers have a C-prefix PAYE code. For 2025/26 the rates are 20%, 40% and 45% on the same thresholds as England, but Wales can vary rates each year.

Savings, dividend and National Insurance rates stay UK-wide.

Welsh taxpayer status follows your main home, not your workplace.

See Welsh income tax bands guide and regional page.

## Related

- [Welsh income tax bands](https://moneyguide.org.uk/work-earnings/welsh-income-tax-bands/)
- [Benefits in Wales](https://moneyguide.org.uk/benefits-tax/wales-benefits-explained/)

## Primary source

gov.wales/welsh-rates-income-tax

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.