King Charles becomes first British monarch to disclose tax bill in modern era, paid $17 million in 2024-2025

In an attempt to increase the transparency regarding the British monarchy's finances, King Charles and Prince William on Thursday (local time) disclosed their personal tax obligations for the first time in their current roles.

King Charles voluntarily paid £12.9 million ($17 million), while his son paid £7.76 million (roughly $10 million) in personal income and capital gain taxes for the tax year 2024-2025, Bloomberg reported, citing statements from Buckingham Palace and Kensington Palace.

King Charles' tax bill details

While Buckingham Palace did not disclose the tax rate paid by the monarch, the latest accounts for the Duchy of Lancaster, one of King Charles' primary sources of personal income, showed that in 2024-2025, he received £26.5 million in dividends. A separate report on the Prince of Wales revealed that he "pays the top rate of income and capital gains tax on all his personal income."

While the monarch's tax bill increased from £11.7 million in 2023-24 to £12.9 million in 2024-2025, his son, Prince William’s, total decreased from £8.34 million that year.

According to reports, the British monarch holds a wide range of assets, including castles and riverbeds, and places him among the world's wealthiest individuals. However, his fortune is also complex, shaped by centuries-old arrangements that differ significantly from those governing most other wealthy families.

James Chalmers, the keeper of the privy purse, in a statement, said, "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."

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

How is the royal family funded?

To carry out their official duties, the royal family is funded through the Sovereign Grant, an annual lump sum derived from an agreement dating back to 1760 between the monarch and the UK government. The grant is typically equivalent to up to a quarter of the profits generated by the Crown Estate, whose holdings include Regent Street, a major shopping destination home to luxury fashion brands and the iconic toy store Hamleys.

In 2027, the Sovereign Grant, which is exempt from tax, will be cut down to £99.9 million from £137.9 million this year, according to a statement from the Treasury. The slashing of the grant will follow the decade-long upgrade of Buckingham Palace. It also reflects the revenue outlook for the Crown Estate.

The profits that the monarch makes from the Duchy of Lancaster, which owns more than 40,000 acres of land across England and Wales, also serve as an income for the UK's sovereign and help to fund the activities of other British royals. The Duchy has been the reigning monarch's personal estate since 1399.

A similar funding arrangement is made for the Prince of Wales and his family from the Duchy of Cornwall, which has roughly 130,000 acres of land, mostly in the south west of England.

Reports suggest that disclosures by the British monarch come at a crucial time, as royal finances face increasing scrutiny. Earlier in June, the National Audit Office reported that Andrew Mountbatten-Windsor, the disgraced former prince, received private income by subletting three cottages on the royal estate where he lives while paying only a nominal "peppercorn" rent.

Buckingham Palace not to become king's personal residence

The statement on the royal finances also included an update on the country's most famous landmark, Buckingham Palace, following its restoration.

The statement announced, "The King and Queen will not make Buckingham Palace a personal residence," and added, "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.”

(with Bloomberg inputs)