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I am a Scottish taxpayer: what Scottish income tax will I pay in 2022/23?

Published on 21 December 2021

The Scottish Government has proposed the rates and thresholds for Scottish income tax that will apply to the non-savings and non-dividend income of Scottish taxpayers from 6 April 2022. We expect these to be approved by the Scottish Parliament in March 2022.

Illustration of Scotland covered by the Scottish flag
Credit: phoelixDE / Shutterstock.com

What are the proposed rates and bands for Scottish income tax for 2022/23?

The proposed rates and bands for Scottish income tax from 6 April 2022 are:

Scottish income tax rates 2022/23

Scottish income tax bands 2022/23 *

Scottish starter rate – 19%

£12,571 – £14,732 (£2,162)

Scottish basic rate – 20%

£14,733 – £25,688 (£10,956)

Scottish intermediate rate – 21%

£25,689 – £43,662 (£17,974)

Scottish higher rate – 41%

£43,663 – £150,000

Scottish top rate – 46%

£150,001 and above


* The bands assume you get the UK-wide personal allowance for 2022/23 of £12,570.

What income do I pay Scottish income tax on?

If you are a Scottish taxpayer, you pay Scottish income tax on your non-savings and non-dividend income.

Non-savings and non-dividend income includes profits from rental property, and earned income, such as employment income, pension income and profits from self-employment.

If you are a Scottish taxpayer, you pay income tax according to the UK rates and bands of income tax on your savings and dividend income.

Am I a Scottish taxpayer?

There is more information about who is a Scottish taxpayer in our ‘tax basics’ section, but in essence, if your home is in Scotland for more than half of a tax year, you are a Scottish taxpayer.

Who collects Scottish income tax?

Although the Scottish Parliament sets the rates and thresholds for income tax payable by Scottish taxpayers on certain types of income, HM Revenue & Customs (HMRC) collect and administer all income tax across the UK. This means that if you have any questions about your income tax, including your Scottish income tax, you should contact HMRC.

If you are a Scottish taxpayer and have PAYE income from an employer or a pension provider, you should have a Scottish PAYE tax code (an “S” code).

Why is it important to tell HMRC my correct address?

It is important to tell HMRC your correct and up-to-date address, because:

  • HMRC will use your address as the main way of working out if they think you are a Scottish taxpayer, and
  • HMRC send correspondence, including repayments of tax, to the address they have on file.

You can tell HMRC your up-to-date address using their online service.

Where can I find more information about Scottish income tax?

You can find more information about Scottish income tax in our tax basics section.

Contact: Joanne Walker (click here to Contact Us)
First published: 21/12/21

 

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