Income tax in Scotland

Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, both in terms of how it is spent and the setting of rates for its collection, and collected by HM Revenue & Customs. The Scottish Government receives the tax back from HM Revenue & Customs via HM Treasury. Since 2017, the Scottish Parliament has had the ability to set income tax rates and bands, apart from the personal allowance. Since this point, differences have developed between income tax rates in Scotland and those elsewhere in the UK.

In 2024, the Scottish Fiscal Commission (SFC) estimated that Income Tax revenue in Scotland will generate an estimate value of £20.5 billion in 2025–2026. The tax system in Scotland operates on a basis of high income households to low income households, meaning that higher earning households will pay more tax than those in lower earning incomes.

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