Income tax in Scotland
Taxpayers in Scotland pay a portion of their income tax to the government in Westminster, and a portion to the Scottish government.
In this article, Which? explains how much tax you pay, and how to pay it.
- Get a head start on your 2018-19 tax return with the Which? tax calculator. Tot up your tax bill, get tips on where to save and submit your return direct to HMRC with Which?.
What are the Scottish tax bands and rates in 2019-20?
The table below outlines the Scottish rates and bands for the 2019-20 tax year.
You can also see the rates and bands for 2018-19 - just select the tax year you'd like to view.
| Tax rate | Earnings | Rates |
|---|---|---|
| Starter rate
| Over £12,500 to £14,549 | 19% |
| Basic rate | Over £14,549 to £24,944 | 20% |
| Intermediate rate | Over £24,944 to £43,430 | 21% |
| Higher rate
| Over £43,430 to £150,000 | 41% |
| Top rate
| Above £150,000 | 46% |
Note: the personal allowance of £12,500 reduces by £1 for every £2 earned over £100,000.
You'll be able to earn the same amount before any tax as in the rest of the UK (where the personal allowance is £12,500), but those earning more than more than £24,944 will pay 1% more tax in Scotland.
Use our income tax calculator for 2019-20
Find out how much income tax you'll pay in Scotland using our calculator. Simply flip the tab to Scotland and select the tax year you'd like to calculate.
Who pays Scottish income tax rates?
If your main home is in Scotland, you will pay the Scottish Rate of Income Tax. If you move homes, either to or from Scotland, you will pay the Scottish Rate if you live in Scotland for more than half of the year.
Taxes for people with multiple properties are dependant on your main home, where you live and where spend most of your time.
Your main home might be one where you spend less time if:
- That’s where your family lives, if you are married or in a civil partnership
- That’s where most of your property is
- That’s where you’ve registered for things such as your GP, car insurance or your bank account
How do I pay income tax in Scotland?
If you complete your own self-assessment tax return, there will be a box on your tax return you need to select to indicate that you pay the Scottish rate.
If you pay taxes on earnings or a pension through a Pay As You Earn scheme (PAYE), your tax code will begin with an S.
Find out more: Understanding your tax code - understand how much you will earn before paying tax.
