Downing Street has said that the holiday will fall on Monday, May 8 following the King’s Coronation at Westminster Abbey two days earlier on Saturday, May 6.
The bank holiday will take place across the UK.
Prime Minister Rishi Sunak said it will be an opportunity for families and communities to come together and celebrate, much like with the coronation of Queen Elizabeth in 1953.
The announcement follows calls from Tory MPs for the Government to either move the early May bank holiday from May 1 to coincide with the coronation weekend or to declare an extra day off.
Sunak said: “The coronation of a new monarch is a unique moment for our country.
“In recognition of this historic occasion, I am pleased to announce an additional bank holiday for the whole United Kingdom next year.
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“I look forward to seeing people come together to celebrate and pay tribute to King Charles III by taking part in local and national events across the country in his honour.”
The Chancellor of the Duchy of Lancaster, Oliver Dowden, said: “The coronation combines the sacred and the solemn but it is also celebratory.
“This bank holiday will once again give people across the United Kingdom the opportunity to come together as families and communities to welcome His Majesty to the throne as we mark this important day in our nation’s long history.”