Welsh Tax Codes Explained 2025-26
Welsh taxpayers have a C prefix on their PAYE tax code (C stands for Cymru). Wales has Welsh Rates of Income Tax (WRIT) — but for 2025-26, these are identical to England. Take-home pay is the same in both nations.
Welsh income tax rates 2025-26 (WRIT)
Personal Allowance: £12,570 (same as rest of UK). Welsh rates apply to all earnings above that.
| Band | Rate | Income range |
|---|---|---|
| Basic Rate | 20% | £12,571 – £50,270 |
| Higher Rate | 40% | £50,271 – £125,140 |
| Additional Rate | 45% | £125,141 – no upper limit |
These rates are identical to England for 2025-26. National Insurance contributions are the same across all UK regions. England vs Wales comparison →
Welsh tax codes (C prefix)
4 Welsh codes — covering all standard situations for Welsh taxpayers.
How Welsh tax codes work
The C prefix is added by HMRC to indicate you are a Welsh resident. C stands for Cymru. Your employer uses this to apply Welsh Rates of Income Tax. You receive the C prefix if your main home is in Wales — even if your employer is based elsewhere in the UK.
C1257L is the standard Welsh code for most employees — it works just like 1257L in England, but the revenue is accounted for as Welsh Rate of Income Tax. For 2025-26, take-home pay is identical to England.
Second-job codes in Wales are CBR (20% flat basic rate), CD0 (40% flat higher rate), and CD1 (45% flat additional rate). These apply when your Personal Allowance is already used by your main job.
Why C prefix matters: Even though Welsh rates match England in 2025-26, HMRC tracks Welsh Tax separately so the Senedd receives the revenue attributable to Welsh taxpayers. If the Senedd changes rates in a future year, the C prefix ensures the correct rates are applied.
Frequently asked questions
What does the C prefix mean on my tax code?
The C prefix means you are a Welsh taxpayer — your main place of residence is in Wales. C stands for Cymru. HMRC adds the C prefix automatically. Welsh taxpayers pay Welsh Rates of Income Tax (WRIT) set by the Senedd. For 2025-26, WRIT rates are identical to England: 20% basic, 40% higher, 45% additional.
What are the Welsh income tax rates for 2025-26?
Wales has Welsh Rates of Income Tax (WRIT) set by the Senedd. For 2025-26: Basic Rate 20% (£12,571–£50,270), Higher Rate 40% (£50,271–£125,140), Additional Rate 45% (above £125,140). These match England exactly. Take-home pay on C1257L is identical to 1257L.
What is the most common Welsh tax code?
C1257L is the standard code for most Welsh employees with one job. It gives the standard £12,570 Personal Allowance with Welsh income tax rates applied. Since Welsh rates equal England rates in 2025-26, take-home pay is the same as on 1257L.
How do I check if my C-prefix code is correct?
Check your tax code via your Personal Tax Account at gov.uk, the HMRC app, or on your payslip. If you have recently moved to or from Wales, make sure HMRC have updated your residential address. Contact HMRC on 0300 200 3300 if you think your code is wrong.