Following the UK budget on 26th November 2025 which applied a freeze of tax bands and rates, potentially until 5th April 2031, it’s time to catch-up on what is happening with the Welsh Income Tax applicable from 6th April 2026 for the 2026/2027 tax year.
As part of the Welsh draft budget preparation announced on 26th October 2025, the Welsh Assembly are proposing that Welsh Income Tax remains aligned to those of the rest of the UK (England and Northern Ireland). Scotland sets its own rates and tax bands.
WRIT for 2026/2027:
The following is from the Welsh Government Outline Draft Budget Report 2026-27:
Welsh Rates of Income Tax
The Welsh Government can vary the three income tax rates (basic, higher and additional) for Welsh taxpayers.
We have decided not to vary the current rates in 2026-27 and, in line with our previous commitments, we propose to set Welsh Rates of Income Tax at 10p.
This means people in Wales will continue to pay the same rates of income tax as people in England and Northern Ireland.
What about Scotland?
Scotland is set to announce their intention for Scottish taxation at their budget in January 2026.
PAYadvice.UK 3/12/2025