Publication - Factsheet

Scottish Income Tax: 2022-2023

Published: 9 Dec 2021

Rates and bands for Scottish Income Tax in the financial year 2022 to 2023.

Published:
9 Dec 2021
Scottish Income Tax: 2022-2023

The Scotland Act 2016 provides the Scottish Parliament with the power to set the Income Tax rates and bands that apply to Scottish taxpayers' Non-Savings, Non-Dividend (NSND) income. This excludes setting the Personal Allowance, which remains reserved, and is set by the UK Government at the UK Budget. 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 Scottish 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 2022 to 2023

At the Scottish Budget on 9 December 2021, the Cabinet Secretary for Finance and the Economy set out the proposed Income Tax rates and bands for 2022 to 2023.  If agreed to by the Scottish Parliament, a Scottish Rate Resolution will give effect to the Income Tax policy set out below.

The rates and bands in the table below are based on the UK Personal Allowance in 2022 to 2023, which is £12,570, as confirmed by the UK Government at their 2021 Autumn Budget.

Bands

Band name

Rate

Over £12,570* - £14,732

Starter Rate

19%

Over £14,732 - £25,688

Scottish Basic Rate

20%

Over £25,688 - £43,662

Intermediate Rate

21%

Over £43,662 - £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