Welsh C tax codes

A C at the start of your tax code, as in C1257L, means you are a Welsh taxpayer and part of your income tax goes to the Welsh Government. For 2026/27 it makes no difference to how much you pay. The Welsh Government kept the Welsh rates at 10p in each band, so a Welsh taxpayer pays 20%, 40% and 45% exactly as in England and Northern Ireland. The prefix is there so HMRC can track how much Welsh income tax is collected.

How the Welsh rates work

Income tax in Wales is split in two. The UK Government reduces each of the main rates on earnings and pensions by 10p in the pound, and the Welsh Government then sets its own rate on top. For 2026/27 that Welsh rate is 10p in each band, which puts the totals back where they started.

Band	Gross income	UK part	Welsh part	Total
Personal Allowance	Up to £12,570	0%	0%	0%
Basic	£12,571 to £50,270	10%	10%	20%
Higher	£50,271 to £125,140	30%	10%	40%
Additional	Over £125,140	35%	10%	45%

The bands, the £12,570 allowance and its taper above £100,000 are all set by the UK Parliament and are the same in Wales. Savings interest and dividends are taxed at UK rates and do not include a Welsh element.

Because the Welsh Government can change its rate each year, the C prefix could matter in a future year. For now, if you compare your payslip with a friend’s in Bristol on the same salary, the tax line should match.

Who counts as a Welsh taxpayer

You are a Welsh taxpayer if your main home is in Wales. Where your employer is based is irrelevant. A nurse living in Chepstow and working at a hospital in Bristol should have a C code. A council officer living in Chester and working in Wrexham should not.

If you have homes in more than one place, the question is which is your main home in practice. HMRC uses the address on your record to decide, so updating it in your personal tax account is what changes your status. If you move into or out of Wales during the tax year, the rules look at where you lived for the longer part of the year.

The C codes you might see

Each code means the same as its English version, with Welsh rates applied:

• C1257L: the standard £12,570 allowance.
• C0T: no tax-free allowance from this job.
• CBR: all pay from this job taxed at the basic rate (20% in total).
• CD0: all pay taxed at the higher rate (40% in total).
• CD1: all pay taxed at the additional rate (45% in total).

Emergency codes carry the prefix too: C1257L W1 or C1257L M1. Codes with M or N for Marriage Allowance, or with K, work the same way with a C in front. Tax codes explained covers the letters in full.

If your code is missing the C, or has one it should not

This year the amount of tax is the same either way, so payroll errors on the prefix do not cost you money. They still matter for public finances, and they could cost you in a year when the Welsh rate differs. If your address is right but the prefix is wrong, contact HMRC. If your address is out of date, update it and HMRC will send a new code to your employer.

People who start work for NHS Wales, a Welsh council or a school in Wales while still registered at an address in England often notice this. The same happens in reverse when someone moves out of Wales. How to check your tax code walks through the HMRC screens where you can see the prefix and your address.

Public sector pay in Wales

Pay in Wales is set separately for some groups. NHS Wales staff are on Agenda for Change, with a 3.3% award for 2026/27 announced by the Welsh Government (as reported by the RCN), and teachers in Wales have their own pay document. Councils and schools use the NJC pay spine for support staff. None of this affects the tax rates, but it does affect the figures you put into a take-home pay calculator. Public sector jobs in Wales covers the employers and pay arrangements.