The Scottish Parliament has confirmed the income tax bands that will apply to Scottish taxpayers for 2024/25. The bands confirm the announcement made in the Draft Scottish Budget last December.
Scottish taxpayers are identified by an S- tax code and assessed as Scottish residents on the basis of their main place of residency rather than where they work.
The 2024/25 income tax rates and bands for Scottish taxpayers on income (other than savings and dividend income) are as follows:
|
Tax band
|
Scottish rate
|
Scottish band
|
rUK rate
|
rUK band
|
|---|---|---|---|---|
|
Personal Allowance*
|
0%
|
Up to £12,570
|
0%
|
Up to £12,570
|
|
Starter
|
19%
|
£12,571 to £14,876
|
—
|
—
|
|
Basic
|
20%
|
£14,877 to £26,561
|
20%
|
£12,571 to £50,270
|
|
Intermediate
|
21%
|
£26,562 to £43,662
|
—
|
—
|
|
Higher
|
42%
|
£43,663 to £75,000
|
40%
|
£50,271 to £125,140
|
|
Advanced
|
45%
|
£75,001 to £125,140
|
—
|
—
|
|
Top/additional**
|
48%
|
Over £125,140
|
45%
|
Over £125,140
|
Scottish taxpayers are entitled to the same personal allowance as individuals in the rest of the UK which for 2024/25 is £12,570. The allowance is reduced by £1 for every £2 of adjusted net income in excess of £100,000.
The UK higher rate tax point for 2024/25 is set at £37,700 and the tax rates for non-savings and non-dividend income are 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £125,140.
Dividend income is subject to tax as a taxpayer's top slice of income with the appropriate rates as follows:
- 8.75% for basic rate taxpayers.
- 33.75% for higher rate taxpayers.
- 39.35% for additional rate taxpayers.
