An investigation into royal finances has revealed that Prince William pays an estimated £7 million in income tax on his earnings from the Duchy of Cornwall – putting him among the very highest UK taxpayers.
An exclusive from The Sunday Times has estimated that The Prince of Wales, earning £20 million per year from the Duchy, voluntarily pays anywhere between £5-7 million on this income.
During his first year overseeing the Duchy, according to this investigation, William received £23.6 million from its earnings, of which £13.5 million was taxable. By estimating expenses for deduction has brought the calculation that has been reported.
William pays 45% tax on his income – the highest rate – as well as capital gains tax.
Such a bill would put him in the top 0.002% of contributors, but since taking over the running of the estate in 2022 as he became heir apparent, William has kept the numbers under wraps as private financial information.
Legal status and tradition
The Duchy of Cornwall is a private 135,000-acre estate, with around 3000 properties across 23 counties, valued at more than £1 billion today. It was established by Edward III for his son, and has provided the heir to the throne with income since 1337.
Each Prince of Wales is not obliged to pay income tax on money received from the Duchy, but Prince Charles – as the previous steward – began voluntarily paying income tax under a 1993 agreement. This is a tradition his son has continued.
The Duchy is also considered a Crown body, so it is not subject to corporation tax.
Under an agreement with the Treasury in 2013, the Monarch is not legally liable to pay income tax, capital gains tax or inheritance tax.
Public scrutiny of royal finances
In recent years, The Sunday Times and Channel 4 Dispatches have looked into royal properties and assets, showing that the Duchy of Cornwall and Duchy of Lancaster make millions for the Royal Family by ‘charging the army, the navy, the NHS and schools to use their land’.
Such reporting – as well as the revelations of the former Prince Andrew’s peppercorn rent for his home at Royal Lodge – has increased the scrutiny on royal finances.
Financial insights like this are rarely shared, making this investigation a notable moment in the ongoing push for greater financial transparency around the Monarchy.
Victoria Howard, editor of The Crown Chronicles
How the Royals are funded
The Sovereign Grant replaced an older funding system known as the Civil List, supporting official duties, while income from estates like the Duchy of Cornwall and Duchy of Lancaster provides private funding for the Monarch and the heir. Royals are not paid a salary for their work.
Due to increased Crown Estate profits – particularly from offshore wind developments – the grant is expected to increase to £131.1 million for the 2025-2026 financial year, compared to £45.8 million for the 2024-2025 financial year.
The Sovereign Grant Report, which summarises the financial year, is published annually during the summer, but it excludes the Duchies as they are considered private income.
Both the Duchy of Cornwall and the Duchy of Lancaster are privately audited. Finances from the Duchy of Lancaster are presented to Parliament before being made available for public access in July.
But in comparison to other areas of royal finance, the Duchies have historically remained less visible to the public.
A Kensington Palace spokesperson 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’.
