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Tax

How does Scottish Income Tax work?

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In short: Scottish taxpayers pay Income Tax on non-savings non-dividend income using six bands set by the Scottish Parliament — starter, basic, intermediate, higher, advanced and top. Savings and dividend tax use UK-wide rules.

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You are usually a Scottish taxpayer if Scotland is your main home. PAYE codes often start with S.

Thresholds and rates change each April in the Scottish Budget — compare with rUK if you are considering relocation.

Use our Scottish Income Tax guide and take-home pay calculator with an S tax code.

Part of our Benefits & tax

This quick answer sits inside our wider benefits & tax hub — with sub-guides, calculators and step-by-step explainers on the same topic.

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