Tax Rates & Allowances
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Income Tax Rates and Bands
Recent income tax rates and bands are as follows:
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
| Savings rate: 10%, 0% from 2015/16 | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
| Dividend Allowance: 0% | Up to £2,000 | Up to £2,000 | Up to £2,000 | Up to £2,000 |
| Basic rate: 20% | Up to £37,500 | Up to £37,700 | Up to £37,700 | Up to £37,700 |
| Higher rate: 40% | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 |
| Additional rate: 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270 in 2021/22 and onwards. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
For 2021/22 the intermediate rate band on non-savings income for Scottish Taxpayers is set at £43,662. For all other income types it remains in line with the main UK band of 50,000.
Scottish Income Tax Rates and Bands for non-savings income
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
| Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,097 | Up to £2,162 |
| Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 |
| Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,118 to £31,092 | £13,118 to £31,092 |
| Higher rate: 41% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 |
| Additional rate: 46% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
When the personal allowance is taken into account, an individual's total income will surpass £50,270 in 2021/22 and thereafter, and they will be taxed at 40%. If the taxpayer pays personal pension contributions or makes gift assistance gifts, this (and the 45 percent level) can be raised.
The intermediate rate band on non-savings income for Scottish taxpayers is set at £43,662 for the financial year 2021/22. For all other sorts of income, it is based on the main UK band of 50,000.
Scottish Income Tax Rates and Bands for non-savings income
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
| Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,097 | Up to £2,162 |
| Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 |
| Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,118 to £31,092 | £13,118 to £31,092 |
| Higher rate: 41% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 |
| Additional rate: 46% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
