Scottish Income Tax Rates and how to check if it applies to you

Scottish Income Tax Rates, image of Scottish money | Crunch

Table of contents

    The Scottish Government operates an income tax regime  which means anyone resident in Scotland pays different income tax rates, using different bands and thresholds compared to the rest of the UK.

    The Scottish income tax rates, bands and thresholds for the 2022/23 tax year, and the previous tax year, are shown below.

    Scottish Income Tax Rates, Bands and Thresholds

    2021/22 Tax Year 2022/23  Tax Year
    Tax Band name Tax Rate Tax Bands and Thresholds
    Starter rate 19% £12,571* - £14,667 £12,571* - £14,732
    Basic rate 20% £14,668 - £25,296 £14,733 - £25,688
    Intermediate 21% £25,297 - £43,662 £25,689 - £43,662
    Higher rate 41% £43,663 - £150,000 £43,663 - £150,000
    Additional rate 46% Over £150,000 Over £150,000

    * Personal Tax free allowance is £12,570 for both tax years

    The above table assumes the individual is receiving the Personal Allowance for tax-free income of £12,570. The Personal Allowance is reduced by £1 for every £2 earned over £100,000. This is the same as the rest of the UK.

    Who is a Scottish taxpayer?

    HMRC will determine whether or not you’re a Scottish taxpayer based on your main place of residence. The Scottish rate of Income Tax is payable for the full year. Anyone identified as a Scottish taxpayer will have an “S” prefix attached to their PAYE tax code.

    What to do if you’re a Crunch client

    Crunch clients who are resident in Scotland need to be aware of these changes so they can estimate their tax liabilities going forward. If you are resident in Scotland, even for part of the year, please ensure Crunch and HMRC have been notified. This will ensure you are paying tax correctly.

    If you have any questions, please contact your client managers.

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