- Last Updated: 21 December 2021
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.
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