Scottish Income Tax 2024 to 2025: rates and bands
- Published
- 19 December 2023
- Topic
- Economy, Money and tax, Scottish Budget
Rates and bands for Scottish Income Tax in the financial year 2024 to 2025.
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 2024 to 2025
|
Bands |
Band name |
Rate (%) |
|
£12,571*- £14,876 |
Starter Rate |
19 |
|
£14,877 - £26,561 |
Scottish Basic Rate |
20 |
|
£26,562 - £43,662 |
Intermediate Rate |
21 |
|
£43,663 - £75,000 |
Higher Rate |
42 |
|
£75,001 - £125,140** |
Advanced Rate |
45 |
|
Above £125,140** |
Top Rate |
48 |
* 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.
Other information
- Scottish tax ready reckoners: direct effects of illustrative tax changes for 2024 to 2025
- Scottish Budget 2024 to 2025: distributional analysis
- Scottish Income Tax 2024 to 2025: factsheet
- Scottish Rate Resolution 2024 to 2025: draft motion and explanatory note
- Scottish Budget 2024 to 2025: attitudes to tax - public engagement
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