[wɛlʃ reɪts ɒv ˈɪnkʌm tæks]
Welsh Rates of Income Tax are the Income Tax rates set by the Welsh government. For the 2023/24 Tax Year, they are the same as the Income Tax rates in England.
Welsh Rates of Income Tax are the Income Tax rates that apply to people who live in Wales. Since 6th April 2019, the Welsh Parliament have had the ability to change part of the Income Tax that Welsh Taxpayers pay. Earnings from savings and dividends are still taxed under the main UK rates.
For the 2023/24 Tax Year, the rates of Income Tax are the same in Wales as they are in England. However, there is the possibility that they might be different in future Tax Years.
Income Tax must be paid on any income earned above the Personal Allowance. For the 23/24 tax year, Basic Rate (£12,571 - £50,270) is at 20%, Higher Rate (£50,271-£125,140) is at 40% and Additional Rate (£125,141+) is at 45%. You can lose your Personal Allowance as your income increases.
Income Tax is collected through the PAYE system or via a Self Assessment. Income Tax paid by Welsh Taxpayers goes straight to the Welsh government.
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