Publication - Factsheet

Scottish Income Tax 2020-2021: rates and bands

Published: 5 March 2020
Directorate: Financial Management Directorate
Topic: Economy, Money and tax, Public sector, +2 more … Scottish Budget, Work and skills

Rates and bands for Scottish Income Tax in financial year 2020 to 2021.

The Scotland Act 2016 provides the Scottish Parliament with the power to set all income tax rates and bands that will apply to Scottish taxpayers' Non-Savings, Non-Dividend (NSND) income for the tax year 2020 to 2021. This excludes setting the Personal Allowance, which remains reserved and is set by the UK Government in the UK Budget.

While the Scottish Parliament has the power to set the Scottish Income Tax rates and bands, HMRC will continue to be responsible for its collection and management. 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 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 2020 to 2021

On 4 March 2020 the Scottish Parliament set the following income tax rates and bands for 2020 to 2021.

Bands	Band name	Rate
Over £12,500* - £14,585	Starter Rate	19%
Over £14,585 - £25,158	Scottish Basic Rate	20%
Over £25,158 - £43,430	Intermediate Rate	21%
Over £43,430 - £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

The documents below include details of the Service Level Agreement between HMRC and the Scottish Government on the administration of Scottish Income tax, as well as a factsheet on the changes made to Scottish Income Tax for 2020 to 2021 and an explanatory note on the Scottish Rate Resolution (SRR).

Analysis is provided on the impacts of our policy decisions on income levels and equality, as well as analytical paper looking at behavioural effects, informed by input from the Council of Economic Advisors.