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鈥檒l pay in each band if you have a standard Personal Allowance of 拢12,570.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to 拢12,570 | 0% |
| Basic rate | 拢12,571 to 拢50,270 | 20% |
| Higher rate | 拢50,271 to 拢125,140 | 40% |
| Additional rate | over 拢125,140 | 45% |
You鈥檒l pay the same tax as the rest of the UK on dividends and savings interest.
Who pays the Welsh rates
You鈥檒l 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鈥檒l 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鈥檚 where:
- most of your possessions are
- your family lives, if you鈥檙e married or in a civil partnership
- you鈥檙e registered for things like your bank account, GP or car insurance
- you鈥檙e a member of clubs or societies
This might apply to you if you live away because of your work, for example you鈥檙e a lorry driver, an offshore worker or in the armed forces.
How you pay
You鈥檒l pay tax at the Welsh rates through PAYE if you鈥檙e employed, or have it deducted by your provider if you鈥檙e getting a pension. HMRC will add a 鈥楥鈥� 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鈥檒l be a box for you to tell HMRC you pay the Welsh rates.