# Welsh income tax bands explained > Work & self-employment · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/work-earnings/welsh-income-tax-bands/ Markdown mirror: https://moneyguide.org.uk/work-earnings/welsh-income-tax-bands.md ## Quick answer Welsh taxpayers pay the same income tax thresholds as England on non-savings, non-dividend income in 2025/26 — basic 20%, higher 40%, additional 45% — but the Welsh Parliament sets the rates each year. PAYE codes use a C prefix (e.g. C1257L). Savings, dividend and National Insurance rates are UK-wide. Income tax on earned income was partially devolved to Wales from April 2019. The Senedd sets Welsh rates of income tax within UK-wide bands each year. For 2025/26 the headline rates match England, but Welsh taxpayers are identified separately through HMRC. ## Key facts - Welsh rates 2025/26: 20% basic, 40% higher, 45% additional — same thresholds as England - Personal Allowance £12,570 (UK-wide); tapers by £1 for every £2 earned above £100,000 - PAYE code prefix C identifies Welsh taxpayers — e.g. C1257L - Savings income, dividend tax, National Insurance and Capital Gains Tax follow UK-wide rules - The Senedd can vary Welsh rates independently each year — check gov.wales before budgeting ## Welsh income tax bands 2025/26 Basic rate — 20% on £12,571 to £50,270 Higher rate — 40% on £50,271 to £125,140 Additional rate — 45% above £125,140 Personal Allowance — £12,570, withdrawn gradually above £100,000 until gone at £125,140 ## How HMRC identifies Welsh taxpayers Welsh taxpayer status is based on where your main home is for the majority of the tax year — not where you work. HMRC apply a C-prefix to your PAYE tax code. If you move to Wales mid-year, status depends on where you lived for most days between 6 April and 5 April. Report address changes to HMRC promptly. Scottish taxpayers use an S prefix; rest-of-UK English and Northern Irish taxpayers have no prefix. ## What stays UK-wide Dividend tax, savings income (Personal Savings Allowance), National Insurance, Capital Gains Tax, Inheritance Tax and pension tax relief rules are set UK-wide regardless of where you live. Welsh residents buying property in Wales pay Land Transaction Tax, not Stamp Duty. Council Tax Reduction is administered by Welsh councils. See our Wales benefits guide for Discretionary Assistance Fund, student finance and NHS prescription rules. ## Frequently asked questions ### Do Welsh rates always match England? Not necessarily — the Senedd sets Welsh rates of income tax each year. For 2025/26 they match England, but future budgets could diverge. Check gov.wales for the current tax year. ### I work in England but live in Wales — which rates apply? Welsh rates if Wales is your main residence for the majority of the tax year. Your employer applies the C-prefix code through PAYE. ### Does Welsh income tax affect my pension contributions? Pension tax relief at source is still given at 20% UK basic rate. Higher and additional-rate Welsh taxpayers can claim extra relief through Self Assessment. ## Primary source https://www.gov.wales/welsh-rates-income-tax ## Related - [Scottish income tax bands](https://moneyguide.org.uk/work-earnings/scottish-income-tax-bands/) - [Welsh income tax (regional)](https://moneyguide.org.uk/regional/wales-income-tax-bands/) - [Benefits in Wales](https://moneyguide.org.uk/benefits-tax/wales-benefits-explained/) - [Take-home pay calculator](https://moneyguide.org.uk/tools/take-home-pay-calculator/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.