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.
