Prince William has annually paid around £7 million in income tax, positioning him among the top taxpayers in the UK, according to a recent report. The Prince of Wales’ substantial tax contribution places him in the top 0.002% of taxpayers in the country.
The bulk of William’s income is derived from the £20 million profit he receives each year from the Duchy of Cornwall, a private land estate valued at approximately £1.1 billion, traditionally passed down to every heir to the throne since the 14th century.
As per a report from the Sunday Times, William is known to voluntarily pay the highest marginal tax rate of 45% on his personal earnings, despite not being legally obligated to do so after an agreement with the Treasury was reached by Queen Elizabeth II in 2013. Following in the footsteps of his father King Charles, William declared an income tax payment of £5.9 million on the £23 million received from the duchy during the 2021-22 financial year.
It was highlighted in the publication that William can offset official expenses from his duchy income before calculating his tax liability, although the specific deductions have not been publicly disclosed. The Duchy of Cornwall, established in 1337 by King Edward III to support his son and heir, currently comprises between 2,000 and 3,000 properties spread across 23 counties in England and Wales, covering an estimated 130,000 to 140,000 acres.
In William’s first year overseeing the estate during the 2023-24 financial period, following King Charles’ ascension to the throne, the Duchy recorded a surplus of £23.6 million, with an estimated tax liability of £5-7 million on approximately £13.5 million of the surplus. Concerns regarding the transparency of royal finances have been amplified due to revelations of the Duchy’s financial dealings with public entities, including charging fees to the military, NHS, and schools for access to their land and resources.
While these transactions are lawful, they have sparked a debate about the appropriateness of taxpayer-funded organizations directing funds towards a private royal estate. A spokesperson from Kensington Palace emphasized that the Prince of Wales pays the highest rates of income and capital gains tax on all his personal income, including proceeds from the Duchy.