1. What is Scottish Income Tax?

Scotland has different income tax rates and bands compared to the rest of the UK. The Scottish Parliament sets these rates, which apply to non-savings and non-dividend income for Scottish taxpayers.

2. How Scottish Tax is Calculated

Scottish Income Tax is calculated using these bands (2023-24):

• Starter Rate: 19% on £12,571-£14,732
• Basic Rate: 20% on £14,733-£25,688
• Intermediate Rate: 21% on £25,689-£43,662
• Higher Rate: 42% on £43,663-£125,140
• Top Rate: 47% above £125,140

Note: The personal allowance (£12,570) is the same as in the rest of the UK.

3. National Insurance Contributions

National Insurance is calculated the same way across the UK:

• 12% on earnings between £242-£967 per week
• 2% on earnings above £967 per week

4. Using the Calculator

Instructions: Enter your gross annual salary in GBP. The calculator will show your estimated Income Tax (Scottish rates), National Insurance, and total tax.

5. Frequently Asked Questions (FAQ)

Q1: Who pays Scottish Income Tax?
A: Scottish taxpayers - usually those who live in Scotland. Your tax code will start with an 'S' if you're a Scottish taxpayer.

Q2: Are there different tax bands in Scotland?
A: Yes, Scotland has five income tax bands compared to three in the rest of the UK.

Q3: Is National Insurance different in Scotland?
A: No, National Insurance rates are the same across the UK.

Q4: What about pension contributions?
A: This calculator shows gross tax. Pension contributions may reduce your taxable income.

Q5: How often are tax rates updated?
A: Scottish tax rates are typically set annually in the Scottish Budget.