The Scottish Parliament has the power to set income tax rates on non-savings and non-dividend income for Scottish taxpayers.
In the Scottish Budget of 15 December 2022, it has been confirmed that the 5-band structure will remain for 2023/24 and most of the thresholds are unchanged. Like the rest of the UK the top rate threshold has been reduced to £125,140. However, unlike the rest of the UK, the Scottish higher rate and top rates have been increased by 1%.
The 19% Scottish starter rate will continue to apply to income between £12,571 and £14,732 (as in 2022/23).
The Scottish basic rate of 20% will continue to apply to income between £14,733 and £25,688 (as in 2022/23).
The Scottish intermediate rate of 21% will continue to apply to income between £25,689 and £43,662 (again, as in 2022/23).
The increased 42% Scottish higher rate will apply to income between £43,663 and £125,140 (in 2022/23 it is 41%).
The increased 47% Scottish top rate will apply to income in excess of £125,140 (in 2022/23 it is 46% and applies to income over £150,000).
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