If you live in Wales, Welsh Income Tax rates apply to your wages, pension and most other taxable income. Wales has devolved Income Tax powers. The Welsh Government sets the Welsh Rates of Income Tax, while HM Revenue and Customs (HMRC) administers Income Tax.
Who pays Welsh Income Tax?
You pay Welsh Income Tax rates if you live in Wales. If you move between Wales and another part of the UK during a tax year, special rules determine whether the Welsh rates apply. Generally, you will pay the Welsh rates if you live in Wales for longer than anywhere else in the UK during the tax year.
Welsh Income Tax rates for 2026–27
For the 2026–27 tax year, the Welsh Income Tax rates are:
| Taxable income | Rate |
| Up to £12,570 | 0% |
| £12,571–£50,270 | 20% |
| £50,271–£125,140 | 40% |
| Over £125,140 | 45% |
These figures assume the standard Personal Allowance of £12,570.
Savings and dividends
You pay the same UK-wide tax as the rest of the UK on dividends and savings interest.
PAYE and Welsh tax codes
If you are an employee, Income Tax is normally deducted from your salary through PAYE.
A Welsh tax code normally begins with a C.
If you are an international researcher
If you are coming to Wales from another country, your tax position can depend on:
-your UK tax residence;
-the type of income you receive;
-whether you continue to receive income from overseas; and
-whether a double taxation agreement applies.
Scholarships, fellowships and research grants can have different tax treatment from employment income.
National Insurance
National Insurance is separate from Income Tax and follows UK-wide rates and categories.
More information
Welsh Rates of Income Tax — GOV.WALES
Last reviewed: [October 2026]