King Charles III became the first British monarch to reveal his tax details this week — having paid a whopping £12.9 million to the government in FY25. It provides the first ever glimpse into royal finances as the Windsors make a concerted effort to become more transparent. The King has also indicated plans to end a nearly 200 year old royal tradition of living in Buckingham Palace after its 10-year refurbishment finishes next year.
According to the otherwise confidential data provided by the Royals, he paid £11.7 million in 2023-24 and £12.9 million in 2024-25. This makes King Charles III one of Britain’s top 100 taxpayers. His son and heir Prince William paid £7.76 million in income and capital gains taxes in the 2024-25 tax year. His office said the Prince of Wales had paid a slightly higher figure of £8.34 million the previous year.
The figures disclosed on Thursday give the public a concrete idea about the King’s personal wealth for the first time — as opposed to the castles, jewels and artwork that come with the job but remain only part of the Royal institution. The British monarch and heir to the throne are exempt from paying income, capital gains, and inheritance taxes. Both King Charles III and Prince William pay income tax on eligible private income (at the highest 45% rate) under a voluntary agreement with HM Treasury. They also pay capital gains tax on the sale of private assets.
The details also come at a time when the royal family is facing continued scrutiny over outdated practices and months of embarrassing headlines linking former Prince Andrew to convicted sex offender Jeffrey Epstein.
How does Britain finance its Royals?
Every year the king receives the ‘Sovereign Grant’, paid by the government to cover the official duties of the monarch and his family, to cover the cost of the upkeep of royal palaces, other residences and historic buildings, and for travel expenses.
It does not provide personal income for the royal family.
The grant is calculated based on a percentage of profits from the Crown Estate, which is made up of massive tracts of land and most of Britain’s sea bed.
Legally, the estate belongs to the Crown but since 1760 the monarch has sacrificed its revenues in return for an annual payment, and it is now an independently run, commercial business.
The Sovereign Grant is currently set at 12% of its profits, which have soared in recent years due to offshore windfarm licences. In 2025/26 it was £132.1 million ($174.5 million) and will be £137.9 in the current financial year.
From 2027 to 2032, the grant will be cut to £100 million a year, partly as money will no longer be required for the £369 million refurbishment of Buckingham Palace, and because Crown Estate profits are expected to fall as revenues from offshore wind leases drop.