What is Scottish income tax?

Updated on 6 February 2019

Tax basics

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

Scottish Rate of Income Tax

While Scottish income tax will apply to the income of armed forces personnel who are Scottish taxpayers in the first instance, they will receive a retrospective payment after the end of the tax year to ensure they pay no more income tax than other UK personnel. Details have not yet been provided, but you can read the commitment 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 2018/19, 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 £11,851* to £13,850 19%
Basic £13,851* to £24,000 20%
Intermediate £24,001* to £43,430 21%
Higher £43,431 to £150,000 41%
Top Over £150,000 46%

* This assumes that you are entitled to the UK personal allowance. The starter, basic and intermediate rate bands together for Scottish income tax are £31,580 (£11,850 + £31,580 = £43,430).

The rates and bands of Scottish income tax for 2017/18 were as set out in this table:

  Band Rate of Scottish income tax
Basic Rate £11,501* to £43,000 20%
Higher Rate £43,001* to £150,000 40%
Additional Rate Over £150,000 45%

* This assumes that you were entitled to the UK personal allowance for 2017/18. The basic rate band for Scottish income tax in 2017/18 was £31,500 (£11,500 + £31,500 = £43,000).

Broadly, Scottish income tax is payable by “Scottish taxpayers”, on their non-savings and non-dividend income. This section explores these points in more detail: