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Changes to Scottish Income Tax for 2022 to 2023: factsheet

A factsheet on the changes made to Scottish Income Tax for 2022 to 2023.

Changes to Scottish Income Tax for 2022 to 2023: factsheet
Income Tax Policy Proposal: Scottish Budget 2022-23

Income Tax Policy Proposal: Scottish Budget 2022-23

  • The Starter and Basic Rate bands will increase by inflation.
  • The Higher and Top Rate thresholds will remain frozen in cash terms at £43,662 and £150,000, respectively.
  • We propose no changes in rates.
  • The UK Government confirmed in the 2021 Autumn Budget that the UK-wide Personal Allowance will remain frozen at £12,570.
  • The Scottish Fiscal Commission have forecast that Income Tax will raise £13,671 million in 2022-23 in Scotland.
Proposed Income Tax Rates and Bands
2021-22 2022-23
Band Rate Band Rate
Starter Over £12,570* - £14,667 19% Over £12,570* - £14,732 19%
Basic Over £14,667 - £25,296 20% Over £14,732 - £25,688 20%
Intermediate Over £25,296 - £43,662 21% Over £25,688 - £43,662 21%
Higher Over £43,662 - £150,000** 41% Over £43,662 - £150,000** 41%
Top Above £150,000 46% Above £150,000 46%

*Assumes individuals are in receipt of the standard Personal Allowance.

**Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

Expected number and proportion of Scottish taxpayers by marginal rate, 2022-23
  • Non-taxpayers: 1,866,000 (41%);
  • Starter rate: 275,000 (6%);
  • Basic rate: 1,111,000 (24%);
  • Intermediate rate: 835,000 (18%);
  • Higher rate: 453,000 (10%); and
  • Top rate: 20,000 (less than 1%).

Impact on individual taxpayers of changes to Scottish Income Tax

  • Those earning less than £27,850 – which is 54% of Scottish taxpayers (1.5 million people) - will pay slightly less Income Tax in 2022-23 than if they lived elsewhere in the UK.
  • No taxpayer will pay more Scottish Income Tax in 2022-23 than they did in 2021-22 on their current income.

The table below compares the change in take home pay for individuals earning different levels of income. Two different comparisons are provided:

  • The second column sets out the impact of the proposed changes to Scottish Income Tax in 2022-23, compared to 2021-22;
  • The third column sets out the difference in Scottish Income Tax payments compared to the rest of the UK in 2022-23.
Example income Impact of Scottish income tax changes in 2022-23 compared to 2021-22 Scottish taxpayers relative to the rest of the UK, 2022-23
£15,000 £0.65 £21.62
£17,000 £0.65 £21.62
£19,000 £0.65 £21.62
£20,000 £0.65 £21.62
£30,000 £4.57 -£21.50
£40,000 £4.57 -£121.50
£45,000 £4.57 -£439.10
£50,000 £4.57 -£1,489.10
£60,000 £4.57 -£1,643.10
£100,000 £4.57 -£2,043.10
£120,000 £4.57 -£2,343.10
£150,000 £4.57 -£2,668.80

Contact

Email: ellis.reilly@gov.scot