# How does Scottish Income Tax work?

> Quick answer · Last updated 4 July 2026

Canonical HTML: https://moneyguide.org.uk/answers/what-is-scottish-income-tax/
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## In short

Scottish taxpayers pay Income Tax on non-savings non-dividend income using six bands set by the Scottish Parliament — starter, basic, intermediate, higher, advanced and top. Savings and dividend tax use UK-wide rules.

You are usually a Scottish taxpayer if Scotland is your main home. PAYE codes often start with S.

Thresholds and rates change each April in the Scottish Budget — compare with rUK if you are considering relocation.

Use our Scottish Income Tax guide and take-home pay calculator with an S tax code.

## Related

- [Scottish Income Tax bands](https://moneyguide.org.uk/work-earnings/scottish-income-tax-bands/)
- [Take-home pay calculator](https://moneyguide.org.uk/tools/take-home-pay-calculator/)

## Primary source

gov.uk/scottish-income-tax

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.