Who’s a Scottish taxpayer?
You’re a Scottish taxpayer if you’re UK resident and your main home is in Scotland. Where your employer is based doesn’t matter. Someone living in Edinburgh and working for a London company pays Scottish rates.
You’ll see it in your tax code, which starts with an S.
What’s taxed at Scottish rates
| Income | Rates |
|---|---|
| Salary and self-employment | Scottish |
| Pensions | Scottish |
| Rental income | Scottish |
| Savings interest | UK-wide |
| Dividends | UK-wide |
| Capital gains | UK-wide |
| National Insurance | UK-wide |
The six bands
Scotland has six income tax bands: starter, basic, intermediate, higher, advanced and top. The rest of the UK has three: basic, higher and additional. The personal allowance (the tax-free amount) is the same across the UK.
The rates and thresholds are set each year by the Scottish Parliament. In broad terms:
- people on lower incomes pay slightly less than in England
- people on middle and higher incomes pay more, and the gap grows as income rises
Check the current year’s rates on GOV.UK.
The US angle
Paying more UK tax usually means larger foreign tax credits on your US return. For most Americans in Scotland, the US bill on salary comes to nothing, and excess credits can carry forward. See how to avoid paying tax twice.
Pensions
If you pay into a personal pension, relief is added at the basic rate automatically. Scottish taxpayers in higher bands may need to claim extra relief through their tax return. Workplace schemes usually handle this for you.
Moving to or from Scotland mid-year
Your Scottish status is decided for the whole tax year, based on where your main home was for most of it. Moving across the border part-way through a year can change which rates apply.
What to do next
See what else is different in Scotland, or build your move plan with Scotland as your destination.
General information, not personal advice. Spotted something out of date? Tell us.