This is a freeview 'At a glance' guide to the Welsh rate of Income Tax.

What is the Welsh rate of Income Tax? What rate is Welsh Tax? 

Tax bands & rates 

These remain the same as the rest of the UK, excluding Scotland.

		Income band £
Rate	Tax rate %	2021-22 & 2022-23	2020-21 & 2019-20	2018-19
Personal allowance (tax -free band)	0	0-12,570	0-12,500	0-11,850
Basic rate	20	12,570-50,270	12,500-50,000	11,850-46,350
Higher rate	40	50,270-150,000	50,000-150,000	46,350- 150,000
Additional rate	45	150,000+	150,000+	150,000+

Setting the Welsh Income Tax rate

The rate is calculated in two stages:

• First, the basic, higher and additional UK rates will each be reduced by 10% to 10%, 30% and 35% respectively.  
• Secondly, the Welsh Assembly will set a single rate that will be applied to each of the reduced rates above to give the Welsh rate.

If the rate is changed for future tax rates this would have an impact on the Welsh Income Tax rates as follows:

If the Welsh rate is set at:	8%	10%	12%
Welsh basic rate will be	18%	20%	22%
Welsh higher rate will be	38%	40%	42%
Welsh additional rate will be	43%	45%	47%

 

Useful guides on this topic

Who is a Welsh Taxpayer
Who is a Welsh taxpayer?

Welsh Income Tax (subscriber guide)
From 6 April 2019, Wales set its own tax rates. The process was similar to the initial rules for Scottish Income Tax.

• Prev
• Next