What is the Scottish rate of Income Tax?

Definition of the Scottish rate of Income Tax

The Scottish government can now set Income Tax rates and bands for taxpayers who live in Scotland. This is known as the Scottish rate of Income Tax.

How the Scottish rate of Income Tax is calculated

The rates of Income Tax in Scotland are calculated differently to the rest of the UK. Whereas in England Wales and Northern Ireland taxpayers pay tax on income at the basic, higher and additional rates, taxpayers in Scotland pay tax on income at the starter, basic, intermediate, higher rate and additional rates. Find out more about the different rates of income tax for UK taxpayers.

Who qualifies as a “Scottish taxpayer”?

A Scottish taxpayer is a taxpayer who lives in Scotland. If you live in England you’ll be an English taxpayer, even if you work for a Scottish employer. Scottish taxpayers have an ‘S’ at the start of their tax code.

Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

Bookkeeping and tax tips

If you check this box, we’ll send you business tips tailored for landlords. If you’d like more general small business tips, leave it unchecked.

We are committed to keeping your information safe. Read our Privacy Policy to find out more.

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.