What is the Scottish rate of Income Tax?

Definition of the Scottish rate of Income Tax

The Scottish government can now set Income Tax rates and bands for taxpayers who live in Scotland. This is known as the Scottish rate of Income Tax.

How the Scottish rate of Income Tax is calculated

The rates of Income Tax in Scotland are calculated differently to the rest of the UK. Whereas in England Wales and Northern Ireland taxpayers pay tax on income at the basic, higher and additional rates, taxpayers in Scotland pay tax on income at the starter, basic, intermediate, higher rate and additional rates. Find out more about the different rates of income tax for UK taxpayers.

Who qualifies as a “Scottish taxpayer”?

A Scottish taxpayer is a taxpayer who lives in Scotland. If you live in England you’ll be an English taxpayer, even if you work for a Scottish employer.

Scottish taxpayers have an ‘S’ at the start of their tax code, for example, S1150L for the 2017/18 tax year, whereas in the rest of the UK the corresponding code is 1150L.

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