Scottish Taxes
Post Author:
Rona Burns
Date Posted:
February 17, 2023
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The Scottish Government has the power to vary the Income Tax rates for people who live in Scotland, but not in respect of income from savings or dividends, which are taxed at rates applicable to the rest of the UK (as are capital gains).
If you are resident in Scotland in 2022/2023, you may pay Income Tax at up to five different rates: 19%, 20%, 21%, 41%, and 46%. The latter two rates are due to increase on 6 April 2023 to 42% and 47% respectively.
These Scottish tax bands are not aligned with the NICs thresholds, which leads to some very high marginal rates for Scottish residents, as shown in the table.
The NICs rates are different for self employed individuals and don’t apply for those over state pension age. The high marginal rate between £100,001 and £125,140 arises because the Personal Allowance is withdrawn by £1 for every £2 of additional income in that band. The threshold for the highest rate is also reducing to £125,140 on 6 April 2023.
| Employee in Scotland in 2023/2024 | |||
| Income in band £ |
Scottish tax % |
NIC % |
Total rate on band % |
| 0 – 12,570 | 0 | 0 | 0 |
| 12,571 – 14,732 | 19 | 12 | 31 |
| 14,733 – 25,688 | 20 | 12 | 32 |
| 25,689 – 43,662 | 21 | 12 | 33 |
| 43,663 – 50,270 | 42 | 12 | 54 |
| 50,271 – 100,000 | 42 | 2 | 44 |
| 100,001 – 125,140 | 63 | 2 | 65 |
| Over 125,140 | 47 | 2 | 49 |
The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
