Update to Scottish Income Tax Rates for 2024-25

The key income tax changes taking force from 6 April 2024 in Scotland were announced by the SNP’s Finance Secretary, Shona Robison, as she released a new plan for Scottish income tax rates which will impact payroll operations. The Scottish Government also announced a newly introduced 45 per cent income tax band for people earning between £75,000 and £125,140 per year.

In addition to this new income tax level, the top rate of tax paid by those earning above the £125,140 rate will also rise from 47 per cent to 48 per cent from April 2024. A 42 per cent rate will remain in place for those earning between £43,633 and £75,000 — and the £43,633 threshold will remain in place for the 2024-2025 tax year.

In the rest of the UK, a higher rate of 40 per cent is currently in place on income between £50,271 and £125,140, with all earnings above that taxed at a higher 45 per cent rate.

Scottish income tax bands for the 2024/25 tax year:

• Starter (19%): £12,571 – £14,876
• Basic (20%): £14,877 – £26,561
• Intermediate (21%): £26,562 – £43,662
• Higher (42%): £43,663 – £75,000
• Advanced (45%): £75,001 – £125,140
• Top (48%): Above £125,140

This latest update comes following the UK Government’s update to National Insurance Contribution rates outlined in the Autumn Statement – more here.

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