Last updated 06/02/24

Scottish Income Tax rates and brackets for 2023/24

Scottish Income Tax rates and brackets for 2023/24
Starter rate
19%
On earnings from £12,571 to £14,732.
Basic rate
20%
On earnings from £14,733 to £25,688.
Intermediate rate
21%
On earnings from £25,689 to £43,662.
Higher rate
42%
On earnings from £43,663 to £125,140.
Top rate
47%
On earnings above £125,140.

Taxpayers who earn more than £100,000 may see a reduction in their Personal Allowance. We’ll talk more about this below.

Income Tax in Scotland: what you need to know

If you’re a taxpayer in Scotland, you pay Income Tax on any income you receive in a tax year above your Personal Allowance. Income Tax in Scotland functions in a similar way to the rest of the UK, but has additional tax brackets. You can find out more about Income Tax in our accounting glossary.

As in the rest of the UK, if you earn more than £100,000 during the tax year, HMRC will reduce your Personal Allowance by £1 for every £2 earned over £100,000. This means that if you’re a Scottish taxpayer and earn £110,000 during the tax year, your Personal Allowance will be reduced to £7,570 (£12,570 - £5,000)* for the tax year.

*Presuming that you have a standard Personal Allowance of £12,570.

How are Income Tax brackets different in Scotland?

As of the 2023/24 tax year, there are five Income Tax brackets in Scotland compared to three in England, Wales and Northern Ireland. The table at the top of this page contains more details about each of the Scottish brackets.

What’s new for the 2024/25 tax year?

From the 2024/25 tax year, the Scottish government will add a new Advanced rate band of 45% for income from £75,000 to £125,140. The Top rate of Scottish Income Tax will also increase from 47% to 48%. We'll update this page with all the changes at the beginning of the 2024/25 tax year.

Note: Income from dividends is taxed at a different rate.

How to pay Income Tax

If you already pay tax through PAYE and owe less than £3,000 in total, HMRC can automatically take what you owe through your tax code. This will be taken from your salary or pension. To be eligible to pay your Income Tax bill this way you must have filed your paper tax return before 31st October or your online tax return by 30th December.

If you’re self-employed, Income Tax is calculated annually on your Self Assessment tax return. The total amount of Income Tax due following completion of your return can be paid in the following ways:

Online or telephone banking (Faster Payments) Same or next day
CHAPS Same day
Bacs Three working days
Debit card Same or next day
Business credit card (1.5% charge, personal credit cards are no longer accepted) Same or next day
Cheque through the post Three working days
Existing Direct Debit Three working days
New Direct Debit Five working days
PAYE tax code N/A
At your bank or building society Same or next day

Online or telephone banking: If you’re paying by online or telephone banking (Faster Payments, CHAPS or Bacs), details for the HMRC bank account you should pay your tax bill into on the government's website.

Debit card or business credit card: If you’re paying by debit or credit card you can do so by following the links from your HMRC online account.

Cheque: You can pay your Income Tax bill with a cheque made payable to ‘HM Revenue and Customs only’ followed by your Unique Taxpayer Reference (UTR) number. It should be posted along with your paying-in slip to HMRC, Direct, BX5 5BD – no street name, city name or PO Box is required.

Direct Debit: You can set up a Direct Debit from your HMRC online account. The first time you set up a Direct Debit for Self Assessment allow at least five working days before you submit your return to ensure the payment is taken from your account in time. Thereafter allow for at least three days. Note that you have to set up a new direct debit every time you wish to make a payment and that payment on account requires a separate Direct Debit.

At your bank or building society: You can only pay your income tax bill at your bank or building society if you still get paper statements from HMRC and have the paying-in slip they sent to you in the post. Payments can be made by cash or cheque made payable to ‘HM Revenue and Customs only’ followed by your Unique Taxpayer Reference (UTR), followed by the letter ‘K’.

Note: All taxable income is defined as gross income less any allowances (such as the Personal Allowance) and reliefs available to the taxpayer.

Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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