Domesday Live

Income tax in Scotland: how the rate has changed

Earnings and savings. Since April 2017 the Scottish Parliament has set the rates and bands of income tax on most pay and pensions in Scotland. The personal allowance, and tax on savings and dividends, are still set by the UK government. These changes are decided by the Scottish Government in its own Budget, so they are not credited to a UK government or Chancellor.

Worth knowing

• In 2017 to 18 the only difference from the rest of the UK was where the higher rate began. In April 2018 Scotland brought in a 19% starter band and a 21% intermediate band, and raised the higher and top rates by a point.
• The higher and top rates rose by a point in April 2023. In April 2024 a new 45% advanced band began on income from £75,000 to £125,140, and the top rate rose to 48%.
• The bands for 2026 to 27, on income above the personal allowance of £12,570, are: starter 19% up to £16,537, basic 20% to £29,526, intermediate 21% to £43,662, higher 42% to £75,000, advanced 45% to £125,140 and top 48% above that.
• The rates for England, Wales and Northern Ireland are under Income tax. Wales has the power to vary its rates but has so far kept them the same as England's.