Income tax

The Scotland Act 2016 provided the Scottish Parliament with the power to set the rates and bands applying to all non-savings non-dividend (NSND) income tax paid by Scottish taxpayers from April 2017. 

NSND income accounts for about 90% of all income. NSND income is primarily from employment and pensions, and excludes income from savings and dividends.

The Scottish Parliament can:

  • Vary tax rates
  • Change the thresholds between tax bands
  • Change the total number of bands

The personal allowance, the amount of income after which you start paying income tax, remains reserved to the UK Government. Income tax continues to be administered by HMRC.

Latest forecasts

On 30 May 2019, we produced updated forecasts for Income Tax.

NSND income tax forecast – May 2019

£ million 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
  10,719 11,005 11,486 11,703 12,332 12,831 13,374 13,985 14,613

Source: Scottish Fiscal Commission (2019) Scotland’s Economic and Fiscal Forecasts - May 2019.

Our report Scotland’s Economic and Fiscal Forecasts for May 2019 contains further information on the methodology used in our forecast.

Supporting information

Scottish Fiscal Commission (2018) Scotland's Economic and Fiscal Forecasts December 2018

Scottish Fiscal Commission (2018) Scotland's Economic and Fiscal Forecasts May 2018

Scottish Fiscal Commission (2018) How we forecast behavioural responses to income tax policy March 2018

Scottish Fiscal Commission (2018) Updated Income Tax Forecasts February 2018

Scottish Fiscal Commission (2017) Scotland’s Economic and Fiscal Forecasts December 2017

Scottish Fiscal Commission (2016) Current Approach to Forecasting

Scottish Government income tax page

UK Government income tax page

HMRC income tax statistics

OBR Scottish tax forecasts