2023-24 Income Tax Rates in Wales
The Welsh government have made no changes to three of the four income tax rates for the 2023-2024 tax year.
It is maintaining the same tax free personal allowance, basic rate and higher rates and decreasing the threshold at which you pay additional rate income tax.
This means Welsh taxpayers will pay the same amount of income tax as in England and Northern Ireland during the 2023/2024 tax year.
Scotland has set their own 2023/2024 tax rates which are different in comparison with the rest of the UK.
Welsh tax rates for 2023/2024 tax year
- Personal allowance for Income under £12,570: 0% income tax.
- Basic rate Income between £12,571 and £50,270: 20% income tax.
- Higher rate Income between £50,271 and £125,139: 40% income tax.
- Additional rate income over £125,140: 45% income tax.
Apart from the additional rate the income tax rates are the same as the 2022/2023 tax year and the same thresholds are expected to remain in place until April 2026.
Welsh tax codes for the 2023/2024 tax year
As a Welsh taxpayer under PAYE you will be given a tax code with the letter C which stands for the word Cymru (meaning Wales in Welsh).
It’s worthwhile checking your tax code periodically so you can ask HMRC for it to be altered if necessary.
In general you will be classed as being a Welsh taxpayer if you live in Wales and this will be the case in most circumstances.
If you spent some time living in England for example this may cause an issue however HMRC will typically categorise you as a Welsh taxpayer if you spent more days in Wales and or had a main residence there.
Welsh public services investment 2023/2024 tax year
Income tax revenue is expected to increase in the 2023/2024 tax year and some of this revenue has been earmarked by the Welsh government for the following public services:
- Local councils in Wales to receive an extra £227million for schools, and to help deliver the real living wage for social care workers in Wales.
- The Welsh NHS to receive an additional £165million.