Publication - Factsheet

Scottish Income Tax: 2020-2021

Rates and bands for Scottish Income Tax in financial year 2020 to 2021.

Published:
5 Mar 2020
Scottish Income Tax: 2020-2021

The Scotland Act 2016 provides the Scottish Parliament with the power to set all income tax rates and bands that will apply to Scottish taxpayers' Non-Savings, Non-Dividend (NSND) income for the tax year 2020 to 2021. This excludes setting the Personal Allowance, which remains reserved and is set by the UK Government in the UK Budget.

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. Therefore, Scottish Income Tax remains part of the existing UK income tax system and is not a fully devolved tax.

How 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 2020 to 2021

On 4 March 2020 the Scottish Parliament set the following income tax rates and bands for 2020 to 2021.

Bands

Band name

Rate

Over £12,500* - £14,585

Starter Rate

19%

Over £14,585 - £25,158

Scottish Basic Rate

20%

Over £25,158 - £43,430

Intermediate Rate

21%

Over £43,430 - £150,000**

Higher Rate

41%

Over £150,000**

Top Rate

46%

* assumes individuals are in receipt of the Standard UK Personal Allowance.

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

More information

The documents below include details of the Service Level Agreement between HMRC and the Scottish Government on the administration of Scottish Income tax, as well as a factsheet on the changes made to Scottish Income Tax for 2020 to 2021 and an explanatory note on the Scottish Rate Resolution (SRR).

Analysis is provided on the impacts of our policy decisions on income levels and equality, as well as analytical paper looking at behavioural effects, informed by input from the Council of Economic Advisors.

Documents

Contact

Email: Central Enquiries Unit at ceu@gov.scot