Britain's king reveals his tax bill for first time in modern era

King Charles and Prince William disclosed their personal tax obligations for the first time in their current roles in an attempt to increase the transparency of the British monarchy's finances. 

The country's head of state voluntarily paid £12.9 million ($17 million) and his son paid £7.76 million in personal income and capital gains taxes for the 2024-2025 tax year, according to statements released Thursday by Buckingham Palace and Kensington Palace. 

Buckingham Palace did not disclose the rate of tax the king pays. However, the most recent accounts for the Duchy of Lancaster — a main source of personal income for the king — show the sovereign received £26.5 million in dividends in 2024-25. A report for the prince said he "pays the top rate of income and capital gains tax on all his personal income."

King Charles's tax bill increased from £11.7 million in 2023-24 and Prince William's total decreased from £8.34 million that year.

"While royal finances can sometimes appear complex, the underlying system is clear in principle, structured in law and refined over time to ensure the monarch can serve with independence, accountability and in the long-term interests of the nation," said James Chalmers, the keeper of the privy purse. 

The king's assets range from castles to riverbeds, placing him among the world's wealthiest people. Yet the monarch's fortune is also byzantine, bound by ancient agreements wholly different to those applicable to most other wealthy families. 

For their official duties, the royal family are funded through the Sovereign Grant, an annual lump sum derived from a 1760 agreement between the monarch and the U.K. government. It's typically as much as a quarter of the profits from the Crown Estate, whose holdings include Regent Street, a popular retail destination featuring high-end fashion stores as well as toy shop Hamleys.

That grant, which is exempt from tax, will be reduced to £99.9 million next year, down from £137.9 million this year, according to a statement from the Treasury. The reduction will come after the completion of a decade-long upgrade of Buckingham Palace and also reflects the revenue outlook for the Crown Estate. 

Profits from the Duchy of Lancaster, which owns over 40,000 acres of land across England and Wales, also provide income for the U.K.'s sovereign and help to fund the activities of other British royals. The Duchy has been the personal estate of the reigning monarch since 1399. 

Meanwhile, The Duchy of Cornwall — about 130,000 acres of land mostly in the south west of England — provides a similar funding arrangement for the Prince of Wales and his family. 

Palace move

This year's statement on the royal finances also included an update on Britain's most famous palace after its restoration program.

"The King and Queen will not make Buckingham Palace a personal residence," the statement announced. "Reflecting their Majesties' wishes that the palace remains the ceremonial centre of royal life, the primary workplace of the Royal Household and a national heritage asset with increased opportunities for public access."

The pair have used nearby Clarence House as their London residence for more than two decades.

The disclosures come at a time of increasing scrutiny of royal finances. Earlier in June, a report by the National Audit Office showed that the disgraced former prince, Andrew Mountbatten-Windsor, received private income by subletting three cottages on the royal estate where he lived while paying a minimal "peppercorn" rent. 

King Charles, who became monarch in 2022, previously disclosed his tax payments when he was Prince of Wales. His late mother, Queen Elizabeth, volunteered to start paying income and capital gains tax in 1992 after a fire severely damaged Windsor Castle. But no monarch in the modern era has revealed their personal tax bill until now.