Income Tax in Scotland (2024)

FAQs

How much income tax will I pay in Scotland? ›

English tax bands

At the other end of the scale, England does not impose an Intermediate or Advanced rate, meaning higher earners in England generally pay less income tax than their Scottish counterparts.

The report estimated there would be 4.6 million adults living in Scotland in 2022-23, of which about 1.9 million, or 41 per cent will not pay income tax.

Progressive changes to Scottish income tax will raise valuable revenue for investing in public services, Deputy First Minister Shona Robison has said. From Saturday (6 April 2024) a new Advanced income tax band will apply a 45% rate on annual income between £75,000 and £125,140.

“We are proud that Scotland has the most progressive Income Tax system in the UK, protecting those who earn less and asking those who earn more to contribute more. This in turn allows us to provide a more comprehensive set of services than in the rest of the UK.

Scotland is richer, per capita, than the UK, a fact the independence campaigners love to champion. Its access to oil pushes its GDP per person to 115% of the UK's, according to the Scottish government, making it the world's 14th richest country. The UK ranks at number 18.

At £528, Scotland has the fourth highest median gross weekly pay of the nations and regions of the UK, which is the same as the UK figure. At £14.72, Scotland has the third highest median hourly pay excluding overtime of the nations and regions of the UK, which is higher than the UK figure.

Scotland leaders say several factors have contributed to the county's higher rate, including a lull in new construction, low property values, school funding and the thousands of acres of game land in the northern part of the county.

You pay Scottish Income Tax if you live in Scotland. It's paid to the Scottish Government. Scottish Income Tax applies to your wages, pension and most other taxable income. You'll pay the same tax as the rest of the UK on dividends and savings interest.

Where do Scottish taxes go? ›

The amount of income tax you pay on non-savings and non-dividend income according to the Scottish income tax rates and bands goes to the Scottish government; any income tax you pay on savings or dividend income according to the UK rates and bands goes to the UK government.

The highest 5% of Scotland's earners will be affected by these changes, and the top 1%, being those earning over £125,140, will be those most concerned.

What is the Marriage Allowance? The Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner if they earn more than you. This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year).

You can take up to three separate personal pension small pots or unlimited occupational pension small pots all in cash. When you do this, 25% of what you take is tax free, and the balance is taxable at your marginal rate of income tax.

In 2016/17 the Scottish budget set the SRIT at 10%, which left tax rates at the same level as in the rest of the UK. The Scotland Act 2016 gave the Scottish Parliament full control over income tax rates and bands, except the personal allowance.

On a £3,000 salary, your take home pay will be £3,000 after tax and National Insurance. This equates to £250 per month and £57.69 per week. If you work 5 days per week, this is £11.54 per day, or £1.44 per hour at 40 hours per week.

If your salary is £45,000 salary, your take home pay will be £33,861 per year, or £2,822 per month after tax and National Insurance. This equates £651 per week. If you work 5 days per week, this is £130 per day. If you work 40 hours per week, this is £16 per hour.

Responsibilities. We have responsibilities in relation to the following taxes: Income Tax - some aspects of which are the responsibility of the Scottish Parliament, others the UK Parliament, and which is administered by HMRC.

You don't need to pay UK tax on foreign income or capital gains if: you've made less than £2,000 in the relevant tax year, and. you don't bring that money into the UK.