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Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

2020/21 2021/22 2022/23 2023/24
Savings rate: 10%, 0% from 2015/16 Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000
Dividend Allowance: 0% Up to £2,000 Up to £2,000 Up to £2,000 Up to £2,000
Basic rate: 20% Up to £37,500 Up to £37,700 Up to £37,700 Up to £37,700
Higher rate: 40% £37,501 - £150,000 £37,701 - £150,000 £37,701 - £150,000 £37,701 - £150,000
Additional rate: 45% Over £150,000 Over £150,000 Over £150,000 Over £150,000

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270 in 2021/22. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

For 2021/22 the intermediate rate band on non-savings income for Scottish Taxpayers is set at £43,662. For all other income types it remains in line with the main UK band of 50,000.

Scottish Income Tax Rates and Bands for non-savings income

2020/21 2021/22 2022/23 2023/24
Starter rate: 19% Up to £2,085 Up to £2,097 Up to £2,162 Up to £2,162
Basic rate: 20% £2,086 to £12,658 £2,098 to £12,726 £2,163 to £13,118 £2,163 to £13,118
Intermediate rate: 21% £12,659 to £30,930 £12,727 to £31,092 £13,118 to £31,092 £13,118 to £31,092
Higher rate: 41% £30,931 to £150,000 £31,093 to £150,000 £31,093 to £150,000 £31,093 to £150,000
Additional rate: 46% Over £150,000 Over £150,000 Over £150,000 Over £150,000

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