Welsh Ministers have confirmed the next round of landfill tax rates for Wales, setting the price signal that will shape waste, construction and local authority budgets for 2026/27. From 1 April 2026 the standard rate will be £130.75 per tonne, the lower rate £8.65 per tonne, and the unauthorised disposals rate £196.15 per tonne.

The instrument-The Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) (No. 2) Regulations 2025-was made on 5 December 2025, laid before Senedd Cymru on 9 December 2025 and comes into force on 1 April 2026. It is laid under section 95 of the Landfill Disposals Tax (Wales) Act 2017 for approval within 28 sitting days. The text is published on legislation.gov.uk and notes that a Regulatory Impact Assessment has been prepared by the Welsh Government.

For finance teams, these rates apply to a “taxable disposal” as defined in Part 2 of the 2017 Act. The lower rate is reserved for qualifying materials as set out in legislation and guidance, while the unauthorised disposals rate is charged on disposals made outside the permitted system. In short: standard for general wastes to landfill, lower for specified qualifying materials, and a higher deterrent rate for illegal activity.

There is no mid-year switch. Disposals made on or after 1 April 2025 but before 1 April 2026 remain subject to the rates set by the 2025 amendment regulations. That means jobs completing by 31 March 2026 should still be priced against the 2025/26 schedule, with the new rates applying to loads received from 1 April 2026.

Budgeting examples help frame the scale. A 10,000‑tonne mixed waste project landing after 1 April 2026 would incur £1,307,500 in tax at the standard rate before gate fees, haulage and handling. A 2,000‑tonne qualifying-material stream at the lower rate would carry £17,300 in tax. Tip outside the system and a 500‑tonne unauthorised disposal would attract £98,075 in tax alone-illustrating the financial risk of poor compliance.

Procurement teams should use the window between December 2025 and March 2026 to tighten contracts. Price adjustment clauses should reference the April 2026 rates explicitly, classify expected waste streams against the lower or standard rate with evidence, and set out who owns the risk if a load is reclassified at the weighbridge. Monthly accruals should reflect the new per‑tonne rates from the April invoice run.

Local authorities preparing 2026/27 budgets will want to model collection and disposal costs on the new rates and test sensitivity to contamination. Even small shifts from lower‑rate to standard‑rate loads can move the dial on net service cost. Authorities that contract on a pass‑through basis should confirm how and when the new rates are applied across municipal waste, construction spoil from highways and estates, and any ad‑hoc projects completing after 1 April.

Waste operators should refresh acceptance criteria and training, so site staff and brokers are aligned on qualifying materials and evidence. Clear chain‑of‑custody, weighbridge ticketing and photographic records will reduce reclassification disputes. For SMEs, the practical step is to lock in disposal routes now and avoid last‑minute diversions that could push a job into the higher tax period.

The unauthorised disposals rate at £196.15 per tonne is designed to bite. Site managers should double‑check carrier licences and broker credentials and keep duty‑of‑care paperwork tight. A single mis‑routed load can erase thin project margins; the headline rate underlines why compliance and record‑keeping are as much a financial control as an environmental one.

Key dates are straightforward: made on 5 December 2025, laid on 9 December 2025, and commencing 1 April 2026, subject to Senedd approval within 28 sitting days. The Regulatory Impact Assessment is available via the Welsh Government. For operators, contractors and councils, the next quarter is about aligning pricing, tenders and internal controls to these rates so 1 April lands without surprises.