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Scottish Income Tax 2023-2024: rates and bands

Rates and bands for Scottish Income Tax in the financial year 2023 to 2024.

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Income Tax

Income Tax is a tax on money you earn. 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.

If you pay Scottish Income Tax, you will have an ‘S’ at the beginning of your tax code. This identifies you as a Scottish taxpayer.

Scottish rates and bands for 2023 to 2024

At the Scottish Budget on 15 December 2022, the Deputy First Minister set out the proposed Scottish Income Tax rates and bands for 2023 to 2024.

The rates and bands in the table below are based on the UK Personal Allowance in 2023 to 2024, which is £12,570, as confirmed by the UK Government at their 2021 Autumn Budget.

Bands

Band name

Rate

£12,571* - £14,732

Starter Rate

19%

£14,733 - £25,688

Scottish Basic Rate

20%

£25,689 - £43,662

Intermediate Rate

21%

£43,663 - £125,140**

Higher Rate

42%

Above £125,140**

Top Rate

47%

* 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.

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).

If you have any queries about the rate of tax you pay, please contact HMRC. You can call HMRC on 0300 200 3300. Lines are open Monday to Friday from 8am to 6pm.

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