The Welsh Government is ending business rates relief for some fee-charging schools to use the funding to support local public services.
The Scottish Government has already removed charitable relief from independent schools and the UK Government is planning similar changes in England.
The Welsh Government consulted on the change last year.
The change will come into effect on 1 April 2025, if it is approved by the Senedd.
Mark Drakeford, Cabinet Secretary for Finance and Welsh Language said: “We believe independent schools with charitable status in Wales should be treated in the same way as those which are not charities.
“By removing this tax break, we can free up as much as £1.3m every year to support local public services.”