Scottish Income Tax 2024/25: Rates, Bands and How It Differs from the Rest of the UK

If you live in Scotland, you pay Scottish income tax — which has different rates and bands to the rest of the UK. Since 2017, the Scottish Parliament has had the power to set its own income tax rates and thresholds.

In 2024/25, Scottish taxpayers face up to 6 bands, with rates ranging from 19% to 48%.

Scottish income tax bands 2024/25

How Scottish tax compares to the rest of the UK

For most incomes, Scottish taxpayers pay slightly more income tax than those in England, Wales, and Northern Ireland.

At £30,000:

• Rest of UK: 20% on earnings above £12,570 = £3,486
• Scotland: 19% starter + 20% basic + 21% intermediate = £3,544
• Difference: £58 more per year in Scotland

At £50,000:

• Rest of UK: 20% basic + 40% higher = £7,486
• Scotland: 19% + 20% + 21% + 42% higher = £9,038
• Difference: £1,552 more per year in Scotland

At £80,000:

• Rest of UK: £19,432
• Scotland: £22,384
• Difference: £2,952 more per year in Scotland

The Scottish higher rate: 42%

The most significant difference is the Scottish higher rate of 42% (vs 40% in the rest of the UK), which kicks in at £43,663 rather than £50,270.

This means Scottish taxpayers earning between £43,663 and £50,270 pay 42% on that band, while their English counterparts pay 20%.

Impact on salary sacrifice:

For a Scottish taxpayer earning £50,000 sacrificing £3,000:

• Tax saving: £3,000 × 42% = £1,260
• NI saving: £3,000 × 8% = £240
• Total saving: £1,500

Compared to an English taxpayer at the same salary:

• Tax saving: £3,000 × 20% = £600
• NI saving: £3,000 × 8% = £240
• Total saving: £840

Scottish taxpayers in the higher rate band benefit significantly more from salary sacrifice.

How does HMRC know you're a Scottish taxpayer?

Your tax code will start with S — for example, S1257L.

HMRC determines your Scottish taxpayer status based on your main place of residence. If you live in Scotland for most of the tax year, you're a Scottish taxpayer — regardless of where you work.

Scottish tax and salary sacrifice

Salary sacrifice works the same way in Scotland as in the rest of the UK — it reduces your gross pay before tax and NI are calculated.

However, because Scottish higher rate tax kicks in at a lower threshold (£43,663 vs £50,270), more Scottish taxpayers benefit from the 42% tax relief on salary sacrifice.

Example: Scottish taxpayer earning £48,000 sacrificing £5,000

Without sacrifice:

• £43,663 − £12,570 = £31,093 taxed at starter/basic/intermediate rates
• £48,000 − £43,663 = £4,337 taxed at 42%

With £5,000 sacrifice:

• Adjusted salary: £43,000
• All income below the higher rate threshold
• Tax saving on the £4,337 that was in the higher band: £4,337 × (42% − 21%) = £911 extra saving

National Insurance in Scotland

NI rates are the same across the UK — they are not devolved. Scottish taxpayers pay the same NI as everyone else.

The Advanced rate: 45% between £75,001 and £125,140

Scotland introduced a new 45% "Advanced rate" band in 2024/25 for incomes between £75,001 and £125,140. In the rest of the UK, this band is taxed at 40%.

This makes salary sacrifice even more valuable for Scottish taxpayers in this range.

Summary

• Scotland has 6 income tax bands from 19% to 48%
• The higher rate of 42% kicks in at £43,663 (vs £50,270 in England)
• Scottish taxpayers earning over £43,663 pay significantly more income tax
• Salary sacrifice is more valuable for Scottish higher rate taxpayers
• NI rates are the same across the UK
• Your Scottish tax code starts with S (e.g. S1257L)