Wales and income tax β what you need to know
Wales gained devolved income tax powers under the Wales Act 2014. Welsh Ministers can set a Welsh Rate of Income Tax (WRIT) for Welsh taxpayers β but in 2026/27, the Welsh Government has set rates equal to those in England and Northern Ireland. Welsh taxpayers pay 20% Basic Rate, 40% Higher Rate, and 45% Additional Rate.
Despite identical rates, Welsh taxpayers have a C prefix on their tax code (e.g., C1257L). This allows HMRC and employers to correctly attribute tax revenue between the UK Government and Welsh Government β even though the amount deducted is identical.
Does Wales have different tax rates than England?
In 2026/27: No. Welsh Income Tax rates match England exactly. If rates ever diverge in a future year, this page will be updated. Check the Welsh Government income tax page for the latest announcements.
What is the C prefix on a Welsh tax code?
The C prefix identifies you as a Welsh taxpayer to your employer. Even though the tax rates are currently the same as England, your employer needs to use the correct HMRC Welsh tax tables to ensure your tax goes to the right place. If you have a C code but live in England, contact HMRC to correct it β though because the rates match, there should be no financial difference until rates diverge.
Official guidance: GOV.UK Welsh Income Tax and Welsh Government β Welsh Rates of Income Tax.