Since April 2019, the Welsh Government has had the power to vary Income Tax rates for Welsh taxpayers through the Welsh Rates of Income Tax (WRIT). Under this system, 10 pence of each pound of the UK rate is devolved to Wales, which the Welsh Government could theoretically adjust up or down. So far, the Welsh Government has chosen to set its rate at exactly the same level as the rest of England and Northern Ireland every single year — meaning in practice, Welsh taxpayers currently pay identical Income Tax to their counterparts in England.
This is a genuinely different approach to Scotland, which has used its devolved powers to create six distinct bands, including a notably higher top rate. Wales has chosen consistency with England instead.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
After the £12,570 Personal Allowance, £27,430 is taxable at 20% = £5,486 Income Tax. National Insurance adds £2,194 (8% on the same amount). Take-home pay: approximately £32,320 per year, or £2,693 per month — identical to the equivalent calculation for England.
Yes. The Welsh Government retains the legal power to diverge from England's rates at any time via the annual Welsh Budget, similar to how Scotland has used its own devolved powers. If Wales does eventually set different rates, this page will be updated to reflect the change — for now, the safest assumption is that Welsh Income Tax equals English Income Tax.