Last updated: May 2026 · 2026/27 Welsh Income Tax rates
What is different on a Welsh payslip?
The most visible difference is your tax code. Welsh taxpayers have a C prefix — for example, C1257L instead of 1257L. This identifies you as a Welsh taxpayer to your employer's payroll system. In 2026/27, Welsh income tax rates are identical to England, so the amount of tax deducted is the same.
Welsh payslip line by line
- Gross Pay: Your total earnings before any deductions — same as any UK payslip.
- Tax Code: C prefix (e.g., C1257L). This is the only visible difference from an English payslip.
- Income Tax / PAYE: Calculated at Welsh rates — currently identical to England. 20% Basic, 40% Higher, 45% Additional.
- National Insurance: Identical UK-wide. 8% on earnings between £12,570–£50,270/year, 2% above.
- Pension: Depends on your employer's scheme — identical treatment in Wales and England.
- Student Loan: UK-wide thresholds and rates — same as England.
- Net Pay: Your take-home — same as an equivalent English worker at the same gross salary (in 2026/27).
Why does Wales have C prefix codes if the rates are the same?
The C prefix ensures your income tax is correctly attributed to the Welsh Government's devolved income tax allocation, rather than the UK Government's general fund. Even though the rates match in 2026/27, the administrative separation ensures Welsh Ministers receive the Welsh Rate of Income Tax (WRIT) revenue they are entitled to.
If the Welsh Government ever changes rates (which it has the power to do), the C prefix allows immediate and correct implementation without any changes to your payslip format.
What to do if your payslip has the wrong tax code
If you live in Wales but your payslip doesn't have a C prefix (or vice versa), update your address with HMRC at gov.uk/personal-tax-account. Since Welsh and English rates are currently the same, there's no immediate financial impact — but it's best to keep your records correct in case rates diverge.
Official guidance: GOV.UK Welsh Income Tax and Welsh Government — Welsh Rates of Income Tax.