King Charles Pays £12.9M in Tax as Palace Lifts Lid on Royal Finances for First Time in History

King Charles's personal tax bill has been disclosed for the first time, marking a historic moment as Buckingham Palace opened up about the monarch's finances.

The figures show that the King paid £12.9 million in tax during the 2024-25 financial year, an increase from £11.7 million the previous year. Although there is no legal obligation for a reigning monarch to pay tax, Charles has continued the voluntary arrangement introduced by Queen Elizabeth II in 1993.

The newly released details also included information about Prince William's tax payments and financial decisions linked to the Duchy of Cornwall. Alongside the disclosures, the Royal Household confirmed that funding through the Sovereign Grant is set to rise sharply over the coming years. The announcements provide one of the clearest pictures yet of how the monarchy's finances are managed and how tax and public funding are being handled.

The King and Prince William Disclosed New Tax Details

King Charles reportedly paid £12.9 million in tax during the 2024-25 financial year, up from £11.7 million in the previous 12 months. The disclosure marks the first time the King's personal tax bill has been made public.

The monarch has now voluntarily paid more than £30 million in tax since becoming King and is listed among the country's top 100 taxpayers. Despite the sizeable payments, there is no legal requirement for the monarch to pay income tax or capital gains tax. The voluntary practice began under Queen Elizabeth II, who chose to start paying tax on her private income in 1993.

The Palace also disclosed Prince William's tax payments for the first time. As Duke of Cornwall, he pays income tax on any net surplus remaining after the costs of funding his household's official activities have been met.

For the 2024-25 financial year, Prince William paid £7.76 million in income tax and capital gains tax. That figure was down from £8.34 million in 2023-24. Since becoming Prince of Wales, he has paid more than £20 million to HMRC.

Another financial decision involving the Duchy of Cornwall was also revealed. Prince William has decided that he will not personally benefit from the £1.5 million annual rental income linked to Dartmoor Prison while the Ministry of Justice considers the site's future.

Instead, that money will be removed from the duchy surplus he receives and invested in projects supporting Princetown and the wider Dartmoor community. The prison has stood empty since the middle of 2024 after toxic radon levels exceeded the legal limit.

The Sovereign Grant Set to Rise to Almost £100 Million A Year

The financial update also confirmed that the core funding provided to the monarchy will increase substantially over the next few years.

Under a new formula for calculating the Sovereign Grant, the Royal Household is expected to receive £99.9 million in 2027-28. That represents an increase of £48.1 million compared with the £51.8 million provided in 2024-25.

The Sovereign Grant covers the Royal Family's official duties as well as the maintenance of occupied royal palaces. According to the announcement, the additional funding will help address a backlog of maintenance work across the royal estate and strengthen cybersecurity.

The revised funding arrangement was agreed by the Royal Trustees. Those involved were outgoing Prime Minister Sir Keir Starmer, Chancellor Rachel Reeves, and the King's Keeper of the Privy Purse and Treasurer, James Chalmers.

The latest financial disclosures, combined with the planned increase in the Sovereign Grant, offer an unprecedented look at the finances surrounding the monarchy. For the first time, the public has been given details of the King's personal tax bill alongside Prince William's tax payments, while the plans for future royal funding and investment in palace maintenance have also been laid out.