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King Charles has set a landmark precedent by releasing his personal tax bill for the first time, revealing that he paid £12.9 million ($24.9 million) in tax last year, and issuing new details about royal finances after years of debate about the cost of the royal family.
The disclosure was matched by a similar move by his son William, Prince of Wales, who released a detailed financial report showing that he paid £7.76 million in personal tax last year, as part of a public report outlining sweeping changes to his estate as heir to the throne.
Taken together, the reports show a £132 million annual outlay ($252.1 million) on the royal family as well as a plan to reduce this sovereign grant over time to about £100 million a year.
In a personal alteration to the work of the monarchy, the King also announced a historic change to Buckingham Palace after it undergoes a decade-long renovation, saying that he and his wife, Queen Camilla, will no longer use the building as their main residence once the modernisation is complete.
The decision means that Buckingham Palace will primarily be a royal workplace rather than a home, with more scope for public visits.
“It will be a buzzing hive of royal activity in every other way,” a Buckingham Palace spokesperson said. “It will remain a working home, but we are seeking to widen public access precisely to maximise the national benefit of a publicly funded building.”
The tax revelations mark the first time that the monarch has disclosed his or her personal payments to the British tax office – known as His Majesty’s Revenue and Customs – and reflect many years of calls for cuts to public funding of the royal household.
Buckingham Palace officials said in a statement that the King had paid more than £30 million since his accession in September 2022, following the death of Queen Elizabeth II.
“In the two full tax years since becoming King, His Majesty’s tax bill was £11.7 million in 2023-24 and £12.9 million in 2024-25, respectively,” they said.
“This is the first time the Sovereign’s personal tax payment has been published, alongside a new document summarising the various sources of Royal Finances, as part of the Royal Household’s commitment to transparency.”
The tax bills are based on income that the King receives from assets and investments, including estates across Britain that have been held for generations.
The Keeper of the Privy Purse, James Chalmers, who is responsible for managing the royal finances, said the disclosures reflected the role of the modern monarchy.
“Just as previous reigns helped steady the nation through moments of profound change, so too does the role of the modern monarchy continue to adapt to meet the demands of our evolving world, one in which the soft power of the royal family plays an increasingly vital diplomatic role,” Chalmers said.
For the Prince of Wales, the financial disclosures reflect his dual role as Duke of Cornwall and the assets that come with the title, including farming and other land that belongs to the Duchy of Cornwall and generates steady income.
While the Sovereign Grant is funded by taxpayers and supports the official duties of the monarch, the Duchy of Cornwall is an independent source of funding for William and his wife, Catherine, the Princess of Wales.
The Prince paid £7.76 million in income tax and capital gains tax in the 2024-25 tax year, after paying £8.34 million the previous year.
The overall tax bill has surpassed £20 million since the Prince of Wales rose to the position in 2022.
While the unprecedented disclosures are certain to heighten attention on the wealth of the royal family, the information is being made public with commitments to invest in certain sectors.
The Duchy of Cornwall is planning to unlock £500 million over the next decade for investment in housing, nature recovery, renewable energy and other projects.
As well, the Duchy will put about £160 million towards housing over the next decade in the hope of adding 12,000 new homes to the national housing supply by 2040. The estate has also spent £15 million this year on community developments and £5.5 million on environmental projects, including some that aim to achieve net zero carbon emissions.
Funds allocated for palace preservation
The Sovereign Grant Report, the annual document that has more detail this year than in any previous year, shows that the funding rose to £132.1 million this year after being unchanged since the King took the throne.
“Over half of the total Sovereign Grant in 2025-26 (£67.5 million) was allocated to the preservation and protection of the Occupied Royal Palaces, some of the nation’s most iconic heritage buildings,” the Buckingham Palace officials said.
The government confirmed in March that the grant would rise to £137.9 million in the 2026-27 year, reflecting the cost of the final year of the Buckingham Palace renovations.
The new reports disclose the major decision to reduce the grant to £99.9 million each year over the period 2027-32, reflecting the lower spending on Buckingham Palace.
While the statement does not address the running costs of the historic building in the heart of London – a major tourist attraction as well as a working home – the financial overhaul may lead to a future when greater revenue from public visits is used to help maintain the building.
The Sovereign Grant Report also showed that the King and Queen undertook 708 engagements over the year, an increase of more than 100 on the previous year.
When these engagements are added to those of the Prince and Princess of Wales and other working members of the royal family, the total number comes to 2273 engagements in the UK and other countries.
Almost 97,000 guests attended 827 Palace events, according to the documents.
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