Prince William's tax bill places him in top 0.002% earners

Prince William pays up to £7 million annually in income tax, placing him among the highest taxpayers in Britain.

This substantial amount ranks him in the top 0.002 percent of taxpayers in the UK.

The future sovereign's wealth is mainly derived from the Duchy of Cornwall, an ancient property valued at about £1.1 billion.

This vast estate generates over £20 million annually for the Prince of Wales.

The Duchy has been passed down to successive heirs to ensure financial independence from public funds since the 14th century.

It is believed that William pays the highest marginal rate of 45 percent on his income, although he is not legally required to do so due to an arrangement made by his grandmother, Queen Elizabeth II, with the Treasury in 2013.

The Duchy of Cornwall was established in 1337 by King Edward III to fund his son and heir.

Currently, it includes between 2,000 and 3,000 properties spread across 23 counties in England and Wales, covering about 130,000 to 140,000 acres.

The portfolio ranges from countryside cottages and farmland to commercial spaces, shops, and industrial properties, along with coastal and river frontage rights.

During the 2023-24 financial year, William’s first year overseeing the estate after his father ascended the throne, the Duchy reported a record surplus of £23.6 million.

Out of this amount, around £13.5 million is expected to be taxable, leading to a tax obligation estimated between £5 million and £7 million.

The prince can deduct official expenses before determining his tax payment.

Questions about the openness of royal finances have become more pressing following revelations about the Duchy's interactions with public bodies. William had previously declined to reveal his tax returns.

Investigations have shown that both the Cornwall and Lancaster estates have earned millions by charging the army, navy, NHS, and schools for access to their land, rivers, and maritime zones.

Though these practices are legal, they have fostered debate about whether publicly-funded entities should be directing money to a private royal estate.

A number of these agreements have since been renegotiated.

After facing scrutiny in 2024, William ceased collecting rents from lifeboat stations, fire departments, community centers, and school playgrounds.

However, the Duchy continues to earn income from Dartmoor Prison, which has been vacant for almost two years due to hazardous radon contamination, costing taxpayers £1.5 million each year.

A Kensington Palace representative stated: "The Prince of Wales pays the highest rate of income and capital gains tax on all his personal earnings, including income from the Duchy."

While King Charles was heir, he voluntarily reported paying £5.9 million in income tax on his £23 million income from the Duchy for the 2021-22 fiscal year.

Neither father nor son has made their tax details public publicly since then.

Norman Baker, a former Home Office minister and author of Royal Mint, National Debt, has suggested that the duchies should be integrated into the Crown Estate for the benefit of the Treasury.

"These are not private properties. They are public assets, and we should be benefiting from them rather than treating them as personal funds for William and Charles," he asserted.