http://en.wikipedia.org/wiki/British_Royal_Family
Monies to support the Queen in the exercise of her duties as head of state of the United Kingdom (the Head of State Expenditure) come from the Civil List. This is a return of a small portion of the revenue from the Crown Lands that are surrendered by the monarch to parliament at the beginning of each reign; all Crown Land being administered by The Crown Estates, an institution that is answerable to parliament. In the 2003-04 fiscal year, the amount surrendered was £176.9 million, where the Head of State Expenditure was £36 million. The Head of State Expenditure does not include the cost of security.
Only the Queen and Duke of Edinburgh receive funding from the Civil List. The Duke receives £359,000 per year.
Only some members of the Royal Family carry out public duties; these individuals receive an annual payment known as a Parliamentary Annuity, the funds being supplied to cover office costs.
The Duke of York: £249,000 per annum
The Earl and Countess of Wessex: £141,000 per annum
The Princess Royal: £228,000 per annum
The Duke and Duchess of Gloucester: £175,000 per annum
The Duke and Duchess of Kent: £236,000 per annum
Princess Alexandra £225,000 per annum
These amounts are repaid by The Queen from her private funds.
Though always voluntarily subject to the Value Added Tax and other indirect taxes, the Queen agreed to pay taxes on income and capital gains from 1992, although the details of this arrangement are both voluntary and secret.
At the same time it was announced that only the Queen and Prince Philip would receive civil list payments.
Since 1993 the Queen's personal income has been taxed as any other Briton. The Queen's private estate (eg shareholdings, personal jewellery, Sandringham House and Balmoral Castle) will be subject to Inheritance Tax, however bequests from Sovereign to Sovereign are exempt