Mark Drakeford, Cabinet Secretary for Finance and Welsh Language, set out the 2026-27 Welsh Budget on 14 October 2025.
Welsh Budget 2026-27: At a glance
Wales, although part of the wider UK, is able to set its own:
- Welsh Rates of Income Tax (WRIT).
- Landfill Disposals Tax (LDT).
- Land Transaction Tax (LTT).
- Non-Dometic Rates (NDR).
These taxes fund around 20% of the Welsh Government's spending and will contribute around £5.5bn to the Welsh Budget in 2026-27.
This year, the Welsh Budget is being presented in two stages, with the outline draft Budget on 14 October setting out the main building blocks, such as funding, taxation decisions and departmental allocations.
On 3 November, the Welsh Government will publish its departmental spending plans.
Welsh Rates of Income Tax (WRIT)
- No changes to WRITs are proposed for 2026-27.
- Rates and allowances remain the same as those in England and Wales.
Land Transaction Tax (LTT)
It is proposed that:
- Residential and non-residential rates and thresholds will remain unchanged for 2026-27.
- A new 'equalisation' rule will be introduced to the Multiple Dwelling Relief (MDR) regime.
- This will create per-dwelling parity between multiple-dwelling and single-dwelling transactions liable to the higher residential rates.
- The existing MDR minimum tax rule rate will increase from 1% to 3%.
- A new refund rule for the higher residential rates of LTT will be introduced.
- This will apply where a private landlord buys a dwelling and then leases it to a local authority in Wales through the Leasing Scheme Wales.
- The main residential rates of LTT will continue to apply to the transaction.
- The effectiveness of the current registered social landlords' relief will be reviewed, and the Welsh Government will consider whether it should be replicated for local authorities in Wales when they buy property for social housing purposes.
See Land Transaction Tax (LTT)
Landfill Disposals Tax (LDT)
- It is proposed that rates will be uplifted by forecast inflation, which will be released on Budget Day (26 November 2025). Therefore, the rates for 2026-27 will be set at the Final Welsh Budget following Budget Day on 26 November.
Non-Domestic Rates (NDR)
- Final phases of the reform programme will be implemented on 1 April 2026.
- Plans to introduce a lower multiplier for small to medium-sized retailers.
- Rates will be determined as part of the Final Budget, considering relevant information following the UK Autumn Budget on 26 November. The outcome of this will also take effect on 1 April 2026.
- Baseline budgets for the development and administration of the local taxes (NDR and council tax) have been increased by 2%.
Useful guides on this topic
Welsh Income Tax (subscriber guide)
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax.
Welsh LTT Rates
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
External links