Change to Scottish Higher Rate tax threshold announced

01 February 2018

Stage 1 of the Scottish Budget debate sees a proposal of a 1% increase on the 2017-18 Higher Rate threshold to £43,430.

Finance Secretary Derek Mackay confirmed that, following publication of the Scottish Government’s tax proposals in December, he would take steps to remove an anomaly that meant some higher rate tax payers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance. 

As a result, while 70% of taxpayers will continue to pay less in the next tax year than they currently do, 55% will pay less than they would elsewhere in the UK. All those earning above the new Higher Rate Threshold of £43,430, a 1% increase on the 2017-18 threshold, will see a modest increase in income tax. This distinct income tax policy will raise around £55 million and support an additional £420 million of investment in the Scottish budget.

Proposed rates and bands for 2018-19


Income Bands


Starter Rate

£11,850* - £13,850


Basic Rate

£13,851 – £24,000


Intermediate Rate

£24,001 – £43,430


Higher Rate

£43,431 – £150,000**


Top Rate

Above £150,000**


* Assumes individuals are in receipt of the standard UK personal allowance.

** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.

For further information the Scottish Government has produced a Fact Sheet about the updated income tax proposals.