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The King receives an annual income from the Duchy of Lancaster, an estate established specifically to provide the monarch with an independent financial source for both official duties and private expenses. This estate comprises a diverse portfolio of land, investments, and properties, which, for the fiscal year 2025-26, generated an income of £25.2 million. In addition to this, the King has other taxable income derived from personal investments and savings, alongside revenues from his private estates at Balmoral and Sandringham.
Prince William, who benefits from the Duchy of Cornwall—a hereditary estate valued at around £1 billion and spanning 130,000 acres, including the Oval cricket ground in London—uses this income to support his official responsibilities, office expenses, and family life. Although William did not initially disclose his tax payments upon becoming heir to the throne, he has since aligned with his father’s practice by publicly sharing his income and capital gains tax information. Ian Patrick, the Prince’s private secretary, explained that Prince William pays income tax at the highest rate on any net surplus after official costs, which are independently audited to confirm their validity. He added, “The prince recognises the interest in these arrangements and the importance of appropriate transparency.” The tax figures for 2025-26 remain under audit and will be revealed in the upcoming year. Details concerning the private investments or income specifics for both the King and Prince William have not been made public.
From 2027-28, a revised calculation formula will result in the Royal Household receiving £99.9 million annually through the Sovereign Grant, an increase from £51.8 million three years ago. The Sovereign Grant funds the operational costs of the monarchy, including staff salaries, official household maintenance, receptions, upkeep of English palaces, and travel for royal engagements. This new amount was determined by Royal Trustees comprising the Prime Minister, Chancellor, and the King’s Keeper of the Privy Purse, James Chalmers. The additional funds are intended for maintaining historic buildings, enhancing cybersecurity at royal residences, and facilitating a transition to green energy, with £11 million allocated specifically to replace boilers at Windsor Castle. Chalmers emphasized that this funding is not unlimited and is subject to strict oversight to ensure good value for money, saying, “Expenditure is governed by the same standards and disciplines as any publicly funded body… with strict value-for-money requirements, detailed planning, multi-year strategies, independent audit, and Treasury oversight.”
The current refurbishment of Buckingham Palace, costing just under £370 million and due for completion in March next year, has seen the Sovereign Grant rise above its core level for the past decade. Once renovations conclude, the annual funding will reduce from £137.9 million to the core level of £99.9 million, which will remain fixed for the next five years until the next review. Importantly, Chalmers pointed out, “the Sovereign Grant does not provide personal income to members of the Royal Family. It funds the work of the institution – not private lives or private wealth.” The King and Queen have opted to remain at Clarence House, their residence since 2005, in order to better facilitate public access to Buckingham Palace. This decision marks the first time since Queen Victoria’s era that a reigning monarch has chosen not to live in Buckingham Palace, a move also expected to boost the palace’s revenue potential.
Historian Anna Whitelock commented to BBC News that the King’s disclosure of his tax payments “puts him front and centre as a very rich man” and represents a deliberate effort to respond proactively to recent calls for greater financial transparency within the monarchy. She stated, “I do think this is very much a sign of the times, and it’s an attempt by the monarchy to try and get on front foot and before they were absolutely pushed to try and show they are responsive and not reactive.” Former Liberal Democrat Home Office minister Norman Baker, a critic of royal funding, argued that visitor ticket sales from Buckingham Palace should be paid to the Treasury rather than the Royal Family, noting that since the family will not be residing there, opening it fully to the public year-round could provide additional refurbishment revenue. Baker also remarked that the large incomes of both the King and Prince William need justification given the monarchy’s costs, stating, “If Charles is talking about slimming down the monarchy and William as well, we want slimmed down costs, not just fewer people on the Buckingham Palace balcony.”
It has also come to light that the Crown Estate, which manages some of the Royal Family’s property interests as an independent commercial entity with its profits paid into the Treasury, saw its operating profits decline in the past year. The profits dropped to £1.2 billion in the year to March, down from £1.4 billion the previous year. This decrease was mainly attributed to waning income from offshore wind projects as the earlier surge from option fees—payments made by companies to secure seabed rights for wind turbine development—diminished, with many projects now moving into the construction phase. The Sovereign Grant is calculated as a percentage of the Crown Estate’s profits but is disbursed from the Treasury, not directly from the Crown Estate itself
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