What is Scottish income tax?

Updated on 17 April 2023

Tax basics

This section tells you about Scottish income tax. Scottish taxpayers pay Scottish income tax and have done so since 6 April 2017.

Image of Scotland covered in the Scottish flag

⚠️ While Scottish income tax applies to the income of armed forces personnel who are Scottish taxpayers in the first instance, they receive a retrospective payment after the end of the tax year to ensure they pay no more income tax than other UK personnel. You can read the commitment in respect of 2018/19 on GOV.UK. Payments were made in June 2019. In addition, a commitment was made to make similar payments in respect of 2019/20. You can read about this on GOV.UK. In July 2020, the UK Government announced a similar payment in respect of 2020/21. They also committed to applying this measure indefinitely, rather than reviewing it on an annual basis. You can read about this on GOV.UK.

Scottish income tax is not a separate tax, nor is it a devolved tax as such.

The Scottish parliament has the power to affect the amount of income tax that Scottish taxpayers pay. To do this, the Scottish parliament can set Scottish rates and bands (of income tax), which determine the rates of income tax payable by Scottish taxpayers on certain types of income.

HMRC administer and collect Scottish income tax, using the Pay As You Earn (PAYE) and Self Assessment systems. This means that if you disagree with a decision concerning Scottish income tax, you must follow the HMRC appeal process. In addition, if you are unhappy with the service provided, you must follow HMRC’s complaints process.

Scottish income tax has applied since 6 April 2017. For 2023/24, the rates and bands of Scottish income tax are as set out in the table below:

Name of Band	Band	Rate of Scottish income tax
Starter	£12,571* to £14,732	19%
Basic	£14,733* to £25,688	20%
Intermediate	£25,689* to £43,662	21%
Higher	£43,663* to £125,140	42%
Top	Over £125,140	47%

* This assumes that you are entitled to the standard UK personal allowance. The starter, basic and intermediate rate bands together for Scottish income tax are £31,092 (£12,570 + £31,092 = £43,662).

The rates and bands of Scottish income tax for 2022/23 were as set out in this table:

Name of Band	Band	Rate of Scottish income tax
Starter	£12,571* to £14,732	19%
Basic	£14,733* to £25,688	20%
Intermediate	£25,689* to £43,662	21%
Higher	£43,663* to £150,000	41%
Top	Over £150,000	46%

* This assumes that you were entitled to the standard UK personal allowance for 2022/23. The starter, basic and intermediate rate bands together for Scottish income tax in 2022/23 were £31,092 (£12,570 + £31,092 = £43,662).

Broadly, Scottish income tax is payable by 'Scottish taxpayers' on their non-savings and non-dividend income. The following pages explore these points in more detail:

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?

Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

Am I employed, self-employed, both, or neither? How do I register for tax and National Insurance? What business records should I keep? Working out profits, losses and capital allowances When do I make Self Assessment payments and file my tax return? How do I pay tax on self-employed income? What tax allowances am I entitled to? What is the trading allowance? What National Insurance do I pay if I am self-employed? What is the Construction Industry Scheme (CIS)? Tax checks for taxi, private hire and scrap metal licences How do I work out my profits for universal credit? Do I have to pay VAT if I am self-employed? What is Making Tax Digital for VAT? Pensions and self-employment How do I repay my student loan if I am self-employed? Introduction to enquiries

Tax status Setting things up How the Pay As You Earn system works Taking on a new employee Reporting PAYE in real time Pay and deductions Ongoing payroll tasks End of year processes Employee leaving Employment law Keeping records Getting things wrong Getting more help

Can I live and work in the UK? Residence and Domicile Employment and self-employment National Insurance for migrants Coming to the UK to study Other migrant issues EU and EEA countries

Going abroad Other income Student loans Types of student Volunteering and training Working Do students have to pay council tax? Glossary of Forms Jargon buster Where can I get further help and information?

Help for employees and the self-employed Help for employers Independent living Caring for someone VAT reliefs for disabled and older people Trusts for disabled people Apprenticeships and disability

Savings and tax Property income Council tax and rates Giving to charity Income from a trust or from the estate of a deceased person Capital gains tax Cryptoassets and tax Do I need to register my trust?

Tax credits and benefits Tax credits State benefits Child benefit Universal credit

Employer-supported childcare Free childcare places Tax credits childcare support Universal credit Other childcare support Tax-free childcare

Taxes on death: overview Dealing with the deceased's own tax affairs Tax on income and gains after death Death of a spouse or civil partner Joint property on death Pension and life assurance policies on death Income from a deceased's person's estate Inheritance tax reliefs and exemptions State benefits on death Getting help with bereavement and inheritance tax Bereavement jargon buster

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