Scottish Income Tax 2018-2019: rates and bands

Rates and bands for Scottish income tax in financial year 2018 to 2019.

This document is part of a collection

For the financial year 2019 to 2020, see  Scottish income tax: 2019-2020

Scotland Act 2016 provides the Scottish Parliament with the power to set all income tax rates and bands (except the personal allowance, which remains reserved) that will apply to Scottish taxpayers' non-savings, non-dividend (NSND) income for tax year 2018 to 2019.

While the Scottish Parliament has the power to set the Scottish income tax rates and bands, HMRC will continue to be responsible for its collection and management. As such, Scottish income tax remains part of the existing UK income tax system and is not a devolved tax.

How the Scottish income tax works

The income tax rates and bands payable by Scottish taxpayers will be those set by the Scottish Parliament. Receipts from Scottish income tax will be collected by HMRC and paid to the Scottish Government (via HM-Treasury).

Scottish rates and bands for 2018 to 2019

On the 20 February 2018 the Scottish Parliament set the following income tax rates and bands for 2018 to 2019.

Band Band name Rate
Over £11,850 to £13,850 Starter Rate 19%
Over £13,850 to £24,000 Basic Rate 20%
Over £24,000 to £43,430 Intermediate Rate 21%
Over £43,430 to £150,000 Higher Rate 41%
Over £150,000 Top Rate 46%

Personal Allowance

These rates assume the person is receiving the Standard UK Personal Allowance for tax-free income of £11,850. Personal Allowance is reduced by £1 for every £2 earned over £100,000.

Scottish taxpayers

Scottish income tax is only payable by Scottish taxpayers. HMRC will determine whether or not you are a Scottish taxpayer based on where your main place of residence is. HMRC need to know if you have changed your address - you can tell HMRC about a change of address on the UK government website.

More information

The documents below provide details of the Service Level Agreement between HMRC and the Scottish Government on the administration of Scottish Income tax, as well as further information on Scottish Income Tax and the Scottish Rate Resolution (SRR).

Scottish income tax annual summary: 2017 to 2018
Analytical note on impacts on income levels and equality.pdf
Explanatory note for the draft Scottish Rate Resolution.pdf
Income tax policy proposals in Budget Bill - fact sheet.pdf


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