King Charles III will disclose his personal tax bill for the first time as monarch in an effort to increase transparency around royal finances, Buckingham Palace announced on Sunday. While British sovereigns are legally exempt from paying certain taxes, the palace emphasized that Charles has voluntarily paid income and capital gains taxes for decades, a practice he began as heir to the throne.

The decision comes amid rising public scrutiny of the royal family's financial affairs, particularly following controversies linked to former prince Andrew Mountbatten-Windsor. A palace spokesperson stated that the move to release the tax information reflects the King’s wish to modernize and evolve royal financial reporting, positioning it within both historical and constitutional frameworks. Charles ascended to the throne in 2022, and the disclosure will accompany the annual release of the royal financial accounts on Thursday.

The King’s income derives from several sources, including the publicly funded Sovereign Grant and private earnings from the Duchy of Lancaster. The Sovereign Grant, which supports the official duties of working royals, rose substantially to £132.1 million ($175 million) for the 2025-2026 financial year, up from £86.3 million the previous year. Separately, Charles drew £26.8 million in private income from the Duchy of Lancaster in 2024-2025. This duchy portfolio, consisting of land, property, and investments, functions as a privately managed business and funds both personal and some official expenses. The Prince of Wales, Charles’s eldest son William, benefits similarly from the Duchy of Cornwall.

Despite an exemption from income, capital gains, and inheritance taxes under UK law, the monarch and other senior royals including William have voluntarily paid income and capital gains taxes since 1993. This policy was adopted partly in response to public concerns over royal finances, notably following the Windsor Castle fire and subsequent repair costs.

Beyond the duchy income, Charles’s private wealth includes ownership of Balmoral and Sandringham Estates, inherited from the late Queen Elizabeth II and exempted from inheritance tax under longstanding government arrangements. Additional personal income sources may include investment returns or trading profits, though details have not been publicly specified.

Separately, the UK Parliament’s Public Accounts Committee has initiated an inquiry into the residential property arrangements made available to members of the royal family following the recent revelations. Norman Baker, a former legislator and critic of royal financial opacity, stated that the fallout from Andrew’s controversies has prompted calls for greater financial transparency. He remarked that the public remains largely unaware of the true costs associated with maintaining the monarchy.