Scottish Income Tax Rates and Thresholds in 2023/24

If you live or work in Scotland then you may need to pay tax on your earnings using the Scottish Income Tax rates.

Do I need to pay Scottish Income Tax?

What are the 2023/24 Scottish tax rate thresholds?

Does Scotland use a different rate of National Insurance?

Will I pay a different rate of Dividend Tax?

What happens if I move?

What if I travel for work?

How do I pay it?

Do I need to pay Scottish Income Tax?

You’ll normally only pay the Scottish rate of Income Tax if your main home is in Scotland. This is normally the place where you spend most of your time, but it could also be where most of your possessions are, or where your family live.

What happens if I move?

You might need to pay Scottish Income Tax if you move to or from Scotland during the tax year, but this is where you spend the majority of the year.

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What are the 2023/24 Scottish tax rate thresholds?

Taxpayers in Scotland pay Income Tax at a different rate, and on the basis of different thresholds, to taxpayers in England, Wales, and Northern Ireland. Some rates and thresholds of Scottish Income Tax have changed for the 2023/24 tax year.

Tax Rate	2023/24 Tax Band Thresholds	2022/23 Tax Band Thresholds
Personal allowance: How much income you can earn before you start to pay income tax. No tax on this income.	£0 – £12,570	£0 – £12,570
Starter rate	£12,571 – £14,732 19% tax	£12,571 – £14,732 19% tax
Basic rate	£14,733 – £25,688 20% tax	£14,733 – £25,688 20% tax
Intermediate rate	£25,689 – £43,662 21% tax	£25,689 – £43,662 21% tax
Higher rate	£43,663 – £125,140 42% tax	£43,663 – £150,000 41% tax
Top rate	Over £125,140 47% tax	Over £150,000 46% tax

How much tax will I pay as a Scottish taxpayer?

If your earnings go above a particular tax threshold, it doesn’t mean that you’ll pay that rate of tax on all of your earnings. You only pay that rate of tax on the part of your income that falls into that particular tax band.

For example

Let’s use the example of someone who lives in Scotland, and earns an income of £60,000 in the 2023/24 tax year. This could be from a salary, self-employment, or a combination of the two.

0% tax on the first £12,570.
19% on the proportion of your income subject to the starter rate, which covers £12,571 – £14,732. You’ll pay 19% tax on £2,161.
20% basic rate tax on the part of your income which falls into the next tax bracket (£14,733 – £25,688). This means you’ll pay 20% tax on £10,955.
21% tax on the part of your salary which falls into the intermediate tax band, which is £25,689 – £43,662. You’ll pay 21% tax on £17,973.
42% higher rate income tax on the next chunk (from £43,663 up to the £60,000 salary we’re using in this example). So, you’ll pay 42% tax on £16,337.

Does Scotland use a different rate of National Insurance?

No, any National Insurance contributions you make will be at the same rate as in the rest of the UK – only the Income Tax rates are different.

Will I pay a different rate of Dividend Tax?

No, the Dividend Tax rate is the same in Scotland as in other parts of the UK. Just be aware that you’ll need to work out the tax you owe on dividends using the UK tax rates and thresholds.

What if I travel for work?

If you have a home elsewhere in the UK but regularly travel for work or have another home in Scotland, you’ll need to work out which one is classed as your main home.

How do I pay it?

If you work for an employer, they’ll use your tax code to make sure they deduct tax at the correct rate. Your tax code will start with an ‘S’, which tells them to use the Scottish rate. For instance, the tax code S1257L tells your employer to deduct tax using Scottish Income Tax rates, and that you have a Personal Allowance of £12,570.

If you submit a Self Assessment tax return, there’s space for you to tell HMRC that you need to pay Income Tax using the Scottish rates. You’ll still be entitled to the same tax allowances as any other taxpayer elsewhere in the UK.

Tax is an incredibly complex subject, so it’s easy to get confused. Learn more about our online accountancy services and call 020 3355 4047, or get an instant online quote.

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About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.