Income tax is paid on most types of income, including:
The amount of income tax you must pay depends on how much taxable income you receive (ie your total income across all the types of income set out above). Different rates of income tax have to be paid on different levels of earning, called ‘tax bands’.
There is a UK-wide personal allowance which, as of 6 April 2022, is £12,570. This means that you do not have to pay any income tax on the portion of your income below this threshold. Above this threshold, you must pay gradually increasing rates of income tax which, under the Scotland Act 2016, are set specifically for Scotland.
In Scotland, income tax is paid either by your employer on your behalf using the Pay As You Earn (PAYE) system, or by you via the Self Assessment process. HM Revenue & Customs collect the tax and pay it to the devolved Scottish Government.
To learn more about income tax, including the rates it is paid at, when it must be paid, and how the PAYE and Self Assessment processes work, read Income tax in Scotland.
You can estimate your income tax using the Government's income tax calculator.