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Income Tax Rates - Scotland

  • Scottish resident taxpayers are liable on non-savings and non-dividend income as set out below.
  • Savings income and dividend income are taxed using UK tax rates and bands.
Band of taxable income Rate
£ %
0 - 2,000 Starter rate 19
2,001 - 12,150 Basic rate 20
12,151 - 31,580 Intermediate rate 21
31,581 - 150,000 Higher rate 41
Over 150,000 Top rate 46
  • Income tax applies to the amount of income after deduction of personal allowances.
  • For 2017/18 the Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents.
  • Income is taxed in a specific order with savings and dividend income taxed last.
  • Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
  • The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.

Income tax rates 2017/18

Band of taxable income Rate Rate if dividends
£ % %
0 - 5,000 Starting rate for savings 0 N/A
0 - 31,500 Basic rate 20 7.5
31,501 - 150,000 Higher rate 40 32.5
Over 150,000 Additional rate 45 38.1
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers 1,000 0
Higher rate taxpayers 500 0
Additional rate taxpayers Nil N/A
Dividend Allowance
for all taxpayers 5,000 0

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