Tax Rise for Higher Rate Payers in Scottish Budget for 23/24

15th December 2022

Income tax increased for higher rate payers.
Deputy First Minister John Swinney has confirmed those earning more than £43,662 will pay more.

He said the standard and basic rates of tax would not change. Both the higher and top rates of tax will be increased by 1p each, to 42p and 47p respectively.

He said: "We're asking all those earning more than £43,662 to pay an extra penny in income tax." This will allow additional spending on health, he said.

Tax threshold
The higher rate threshold will be maintained and the top rate will be lowered to £125,140 from £150,000. It means more people will be taken into the higher tax band.

Swinney told MSPs: "On income tax, I intend to maintain the thresholds for the starter and the basic rate bands at their current levels. I will also maintain the higher rate threshold at the current level, and I will lower the top rate threshold from £150,000 to £125,140.