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Scotland Tax Tables - Tax Rates and Thresholds in Scotland

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Welcome to the iCalculator™ AB Scotland Tax Tables page. Understanding the tax system is essential for individuals and businesses residing or operating in Scotland. On this page, you will find links to current and historical tax tables for Scotland, which provide detailed information on different tax rates and how they may affect you. Review the latest income tax rates, thresholds and personal allowances in Scotland which are used to calculate salary after tax when factoring in social security contributions, pension contributions and other salary taxes in Scotland

Choose a specific income tax year to see the Scotland income tax rates and personal allowances used in the associated income tax calculator for the same tax year.

Scotland's Distinct Income Tax Journey

The evolution of Scotland's fiscal autonomy, particularly its power to set its own income tax rates, is a key aspect of the broader narrative of devolution within the United Kingdom.

The Beginnings of Fiscal Devolution

Devolution for Scotland commenced with the establishment of the Scottish Parliament in 1999. Post the 1997 devolution referendum, the Parliament was granted the power to vary income tax rates by up to 3% from those in the rest of the UK. However, initially, this power was not utilized, and tax rates remained aligned with the rest of the UK.

Expanding Fiscal Autonomy

The Scotland Act of 2012 marked a significant enhancement in Scotland's fiscal powers. It required the Scottish Parliament to set a Scottish Rate of Income Tax (SRIT), effectively allowing for a divergence from the UK tax rates.

Comprehensive Control and Divergence

The Scotland Act of 2016 further empowered the Scottish Parliament with comprehensive control over income tax rates and bands, barring the personal allowance. This led to the introduction of distinct tax rates and bands in Scotland from the 2017/18 tax year onwards (with the latest being the 2024/25 tax year), thereby marking a clear fiscal divergence from the rest of the UK.

Implications for the UK

Scotland's distinct income tax rates represent the nuanced balance between unified UK fiscal policies and regional autonomy. This allows Scotland to tailor its fiscal policies to regional socio-economic needs while maintaining its integral role within the UK's financial framework.