The Prince of Wales has previously refused to disclose his tax contribution, but a new report has named the heir to the throne as one of Britain’s highest taxpayers

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Prince William is in the top 0.002 per cent of taxpayers in the UK(Image: AP)

Prince William has contributed up to £7million each year in income tax, putting the heir to the throne among Britain’s highest taxpayers. According to a new report, the Prince of Wales’ hefty tax bill puts him in the top 0.002 per cent of taxpayers in the UK.

The majority of William’s income comes from the £20 million profit a year he receives from the Duchy of Cornwall, a private land estate worth approximately £1.1 billion, inherited by every heir to the throne since the 14th century.

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Prince William’s enormous income tax bill has been revealed(Image: WPA Pool, Getty Images)

According to the report, published by the Sunday Times, William is understood to voluntarily pay the highest marginal rate of 45 per cent on his personal earnings, though he faces no legal obligation to do so after his grandmother, Queen Elizabeth II, struck an agreement with the Treasury in 2013.

William is following the lead of his father King Charles, who voluntarily declared an income tax payment of £5.9 million in relation to the £23 million that he received from the duchy in the 2021-22 financial year during his time as Prince of Wales.

The publication added that William is allowed to deduct official expenditure from his duchy income before calculating his tax bill. The kind of expenses William files as tax deductions from his duchy income has not been declared publicly.

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The Prince of Wales at a Duchy of Cornwall event(Image: PA)

The Duchy of Cornwall traces its origins to 1337, when King Edward III established the estate to provide funds for his son and heir.

Today, the portfolio encompasses between 2,000 and 3,000 properties spread across 23 counties in England and Wales, covering roughly 130,000 to 140,000 acres.

During the 2023-24 financial year, William’s first year of overseeing the estate following his King Charles ’ accession to the throne, the Duchy delivered a record surplus of £23.6million. As a result, approximately £13.5million is believed to be subject to taxation, producing an estimated tax liability between £5million and £7million.

Questions surrounding the transparency of royal finances have grown louder following revelations about the Duchy’s dealings with public institutions. Investigations uncovered that both the Cornwall and Lancaster estates have generated millions by levying charges on the army, navy, NHS and schools for access to their land, rivers and coastal waters.

These arrangements, while lawful, have sparked debate about whether taxpayer-funded bodies should be directing money towards a private royal estate. A Kensington Palace spokesman said: “The Prince of Wales pays the top rate of income and capital gains tax on all his personal income, including receipts from the Duchy.”