King Charles has become the first British monarch to reveal how much tax he pays, disclosing that he handed £12.9 million to HM Revenue & Customs during the 2024-25 financial year in an unprecedented move designed to increase transparency around the monarchy’s finances.
The figures, published in the Royal Household’s annual accounts, place the King among Britain’s highest taxpayers and mark the first time a reigning sovereign has voluntarily disclosed the size of their tax bill.
The Prince of Wales also revealed that he paid £7.76 million in income and capital gains tax over the same period, with Kensington Palace saying the decision reflected Prince William’s commitment to greater openness over his financial affairs.
According to Buckingham Palace, the publication of both men’s tax payments was a personal decision intended to “encourage wider understanding of our accountability”. Since Charles became King and William inherited the Duchy of Cornwall, the pair have collectively paid more than £50 million in tax.
Neither the King nor the Prince of Wales is legally required to pay tax. However, the practice has continued voluntarily since 1993, when Queen Elizabeth II and the then Prince of Wales agreed to begin paying income tax following criticism over royal finances.
The latest accounts do not provide a detailed breakdown of how either man’s tax liability was calculated.
Charles receives his private income primarily from the Duchy of Lancaster, a historic portfolio of land, commercial property and investments that provides the reigning monarch with an independent source of funding. The estate generated an income of £25.2 million during 2025-26. The King also pays tax on income derived from his private estates at Balmoral and Sandringham, together with personal investments and savings.
Prince William’s income is derived from the Duchy of Cornwall, the billion-pound estate traditionally held by the heir to the throne. Kensington Palace said he pays income tax at the highest rate on any net surplus after official costs have been deducted, with those deductions independently audited.
William has also decided to forgo the £1.5 million annual rental income previously generated by Dartmoor Prison. The money will instead be directed towards regeneration projects in the nearby community of Princetown after the prison closed in 2024 following the discovery of high levels of radon gas.
The annual accounts also revealed wider changes to royal finances. From 2027-28, the Sovereign Grant will be set at £99.9 million a year under a new funding formula agreed by the Royal Trustees, down from the current £137.9 million as the decade-long refurbishment of Buckingham Palace comes to an end.
Although lower than the current level, the grant remains substantially above the £51.8 million received three years ago. Palace officials said the funding would support the maintenance of historic royal residences, strengthen cyber security and finance environmental improvements, including an £11 million programme to replace ageing boilers at Windsor Castle.
James Chalmers, the Keeper of the Privy Purse, rejected suggestions that the funding represented excessive public spending, insisting the Sovereign Grant was “not a blank cheque”. He said expenditure was subject to Treasury oversight, independent audit and strict value-for-money requirements, adding that the grant funded “the work of the institution – not private lives or private wealth”.
The accounts also confirmed that King Charles and Queen Camilla will continue living at Clarence House after the £369 million refurbishment of Buckingham Palace is completed next year. Palace officials said the decision would allow greater public access to the historic building while Buckingham Palace continued to serve as the ceremonial and administrative headquarters of the monarchy.
