Income Tax rates and Personal Allowances

Last updated: 24 April 2017

The rate of Income Tax you pay depends on how much of your taxable income is above your Personal Allowance in the tax year.

The current tax year is from 6 April 2017 to 5 April 2018 and most people's Personal Allowance is £11,500.

Your Personal Allowance is different if you were born before 6 April 1948 or your income is over £100,000.

Scottish Income Tax (2017/18)

From 2017/18, the Scottish Parliament has more powers over income tax in Scotland.

You will pay Scottish Income Tax if you live in Scotland. This means your income tax will be paid to the Scottish Government.

What this means for you

The Scottish income tax rates and bands for the tax year 2017 to 2018 are:

Scottish income tax bands Scottish income tax rates Taxable income
Scottish Basic Rate 20% Above £11,500 up to £43,000
Scottish Higher Rate 40% Above £43,000 up to £150,000
Scottish Additional Rate 45% Above £150,000

Assumes person is in receipt of the Standard UK Personal Allowance.
Personal Allowance is reduced by £1 for every £2 earned over £100,000

Your Personal Allowance – the amount of income you don't pay tax on – continues to be set by the UK Government. You'll also pay the same tax as the rest of the UK on dividends and savings interest.

Visit GOV.UK to let HMRC know of any changes to your address details.

Find out more about the policy for Scottish income tax in 2017/18 on gov.scot

Scottish rate of Income Tax (2016/17)

You pay the Scottish rate of Income Tax if you live in Scotland. This means some of your income tax will be paid to the Scottish Government.

What this means for you

The Scottish rate for the tax year 2016 to 2017 will be 10 per cent.

This means there is no overall change to the income tax rate you pay – whether you pay the basic, higher or additional rates. You'll pay the same overall rate of income tax as people in the rest of the UK.

Your Personal Allowance – the amount of income you don't pay tax on – stays the same. You'll also pay the same tax as the rest of the UK on dividends and savings interest.

Visit GOV.UK for more information on how the Scottish rate of Income Tax affects you, for example if you move to or from Scotland or live in more than one home.

Find out more about the policy on the Scottish rate of Income Tax on gov.scot

More information on income tax and allowances

Visit GOV.UK to find out more information on:

  • Income Tax rates
  • Income Tax on savings interest
  • Married Couple's Allowance
  • Blind Person's Allowance
  • Previous tax years
  • Your Personal Allowance if you were born before 6 April 1948
  • Your Personal Allowance if your income is over £100,000

Claim a tax refund

If you've paid too much tax, the way you get a refund depends on your circumstances.

Sometimes HM Revenue and Customs (HMRC) will send you a refund automatically.

Find out more about claiming a tax refund.

Tax codes

Your employer or pension provider uses your tax code to work out how much tax to take from your pay or pension.

Find out more about tax codes.