What is the Scottish rate of Income Tax? How many bands are there? What are the current and past tax bands and rates?

This is a freeview 'At a glance' guide to Scottish Income Tax rates.           

Scottish Income Tax only applies to non-savings non-dividend income received by Scottish taxpayers. This includes:

  • Employment income.
  • Profits from self-employment.
  • Pension income.
  • Profits from rental property.

The personal savings allowances and dividend rates and allowance apply as normal. 

Tax bands & rates

  Tax rate %  Income band £ Tax rate %  Income band £ Tax rate % 


Income band
£

 

Rate

2024-25

2023-24

 

2022-23

2021-22

Personal allowance (tax-free band)         

0 £0-12,570

 0  

£0-12,570 0

£0-12,570

£0-12,570

Starter rate

19 £12,570-14,876

19

£12,570-14,732 19

£12,570-14,732

£12,570 - 14,667

Basic rate

20 £14,877-26,561

20

£14,733 - 25,688 20

£14,733 - 25,688

£14,668 - 25,296

Intermediate rate

21 £26,562-43,662

21

£25,689 - 43,662 21

£25,689 - 43,662

£25,297 - 43,662

Higher rate

42 £43,663-75,000

42

£43,663-125,140 41

£43,663 - 150,000

£43,663 - 150,000

Advanced rate 45 £75,001-125,140 N/A N/A N/A N/A N/A

Additional rate*

48 £125,141+

47

£125,141+ 46

£150,001+

£150,001+

 

*Finance Act 2023 reduces the additional rate threshold to £125,140 for savings and dividend income from April 2023. 

Despite the differences between Scottish Income Tax rates and the rest of the UK, the following reliefs will still operate in the same way, giving the same relief:

  • The personal allowance will be restricted by £1 for every £2 of an individual’s Adjusted net income above £100,000.
  • Transferable marriage allowance will still give relief at 20% of the personal allowance.
  • Gift Aid relief will still be 25p for every £1 donated.
  • Scottish taxpayers receiving relief on Pension contributions at source will receive 20% relief in their pension pots and there will still be scope for claiming additional relief where appropriate. HMRC have confirmed that 21% taxpayers will receive the additional 1% through their tax codes.
  • Mortgage interest relief for landlords will still be at 20%.

Scottish taxpayers who receive a social security lump sum will be taxed at the appropriate Scottish tax rate.

Tax bands & rates: earlier years

    Income band £    

Rate

Tax rate %

2020-21 

2019-20 

2018-19 

2017-18

Personal allowance (tax-free band)         

 0  

 £0-12,500

£0-12,500

 £0-11,850

£0-11,500

Starter rate

19

£12,500-14,585

£12,500-14,549

£11,850-13,850

£11,500-43,000

Basic rate

20

£14,586-25,158

£14,549-24,944

£13,850-24,000

Intermediate rate

21

£25,159-43,430

£24,944-43,430

£24,000-43,430

Higher rate

41

£43,430-150,000

£43,430-150,000

£43,430-150,000

£43,000- 150,000

Additional rate*

46

£150,000+

£150,000+

£150,000+

 £150,000+

 

Useful guides on this topic

Scottish Income Tax
From 6 April 2016, Scotland set its own Income Tax rates. What is the rate of Scottish Income Tax? What implications does it have?

Scottish Income Tax: Am I a Scottish taxpayer?
To whom does the Scottish Income Tax apply? Am I resident in Scotland? What constitutes a residence and the 'main' residence?


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