When King Charles voluntarily handed over a tax bill of £12.9 million for the 2024-25 financial year, he became the first British monarch in modern times to publish such a figure – a move that placed him among the UK's top 100 taxpayers. The disclosure, released alongside the annual royal accounts, also showed that Prince William paid £7.76 million in tax during the same period. The combined tax bill of father and son since Charles became King in 2022 now exceeds £50 million.
So what is actually happening? The King is not legally obliged to pay income tax, capital gains tax or inheritance tax on assets inherited from a previous monarch. However, since 1993, successive monarchs have voluntarily paid tax on their private income. King Charles has continued this tradition and, crucially, has chosen to publicise the amount – a step his father never took. Buckingham Palace described the decision as increasing transparency and aimed to "encourage wider understanding of our accountability."
“How King Charles voluntarily pays tax and why it matters for UK transparency.”
The King's income comes from several sources. The Duchy of Lancaster, a portfolio of land, investments and properties set up centuries ago to provide the monarch with an independent income, generated £25.2 million in 2025-26. He also earns money from personal investments and the private estates of Balmoral and Sandringham. Prince William's income, meanwhile, comes from the Duchy of Cornwall, a £1 billion, 130,000-acre hereditary estate that includes the Oval cricket ground in London. William pays income tax at the highest rate on the net surplus after the costs of his official duties – which are independently audited – have been met.
The history of royal tax transparency is a relatively recent one. Before the 1990s, the monarch's private finances were largely opaque. Following a fire at Windsor Castle in 1992, Queen Elizabeth II agreed to start paying tax on her private income, and the annual Sovereign Grant – the taxpayer-funded sum that covers official royal duties – was introduced. That grant is now set to rise to just under £100 million for the year 2027-28. Charles's decision to publish his actual tax bill goes further than his mother ever did, and alongside Prince William's similar move, it represents the most open picture of royal finances ever offered.
For UK readers, this matters for several reasons. The royal family is partly funded by the taxpayer through the Sovereign Grant, which comes from the profits of the Crown Estate – a portfolio of land and property that belongs to the monarch, but whose revenue is handed over to the Treasury in exchange for the grant. The public therefore has a direct interest in how that money is used. By voluntarily paying tax and publishing the figures, the King signals that he is subject to the same contribution system as everyone else – although critics point out that the lack of a detailed breakdown makes it hard to verify whether the correct amount has been paid.
Q: Does the King have to pay tax? No. As sovereign, Charles is exempt by law from income tax, capital gains tax and inheritance tax on assets inherited from previous monarchs. However, he has voluntarily agreed to pay income and capital gains tax on his private income since 1993.
Q: How much is the King actually worth? Estimates vary widely. The Sunday Times Rich List, published in May, valued the King's personal wealth at £680 million – excluding the Duchy of Lancaster and the Crown Estate, which it argues come with the job and cannot be treated as personal assets. The Guardian, using a different methodology that included assets like the royal car collection, put the figure at around £1.815 billion at the time of the coronation.
Q: Why doesn't the King live in Buckingham Palace? The King and Queen Camilla have decided to remain at Clarence House, their London residence, even after renovations to Buckingham Palace. The state rooms at the palace are used for official events, but the family will not move into the private apartments.
What happens next? The tax payable for 2025-26 is still being audited and will be made public next year. The Duchy of Lancaster and Duchy of Cornwall will continue to generate income, and the Sovereign Grant will rise to almost £100 million by 2027-28. Whether Prince George will follow his father and grandfather’s lead in voluntarily disclosing his tax payments remains an open question – but for now, the monarchy’s experiment in transparency looks set to continue.