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How tax rates vary depending on where you live

3 minute read

Some tax rates are different for different parts of the UK. We explain what you need to know.

Who's it for? All investors 

The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek independent advice. Tax rules can change in future. Their effects on you will depend on your individual circumstances.

What you’ll learn:

  • What Scottish income tax rates are
  • When income tax rates in Wales will start to differ from rates paid in England.
  • How much tax you’ll pay on property transactions in Wales and Scotland.

Certain tax rates can vary across the different countries of the UK, so it’s important you know which rates apply to you.

This can help you work out how much tax you may have to pay and make the most of any allowances which may be available to you.

Here, we explain the different rates which apply depending on where you live. 

Scotland

Income tax

If you live in Scotland, you’ll pay Scottish income tax on your wages, pension and most other taxable income, such as profits you make if you’re self-employed and rental income.

Band

Taxable income (2024-25)

Scottish tax rate

Personal Allowance

Up to £12,5701

0%

Starter Rate

Over £12,570 to £14,732

19%

Scottish Basic Rate

Over £14,733 to £25,688

20%

Intermediate Rate

Over £25,689 to £43,662

21%

Higher Rate

Over £43,663 to £125,140

42%

Top Rate

Above £125,140

47%

^The Personal Allowance is reduced by £1 for over £2 earned over £100,000.

Savings income and dividend tax rates

Scotland pays the same rate as the rest of the UK on dividend income and savings interest. The tax-free dividend allowance is currently £500 (2024-25). Dividends received that are more than this are taxed in accordance with the following taxable income rates.

Tax rate for dividends above £500

Income rates

Tax rate

Ordinary rate

£0 - £37,500

8.75%

Upper rate

£37,501 - £150,000

33.75%

Additional rate

£150,001+

39.35%

Personal Savings Allowance

Basic rate taxpayers don't have to pay tax on the first £1,000 of their savings income.

Higher rate taxpayers don't have to pay tax on the first £500 of their savings income.

There's no personal savings allowance for additional rate taxpayers.

Stamp duty

If you’re buying a property in Scotland, you'll pay Land and Buildings Transaction Tax (LBTT) rather than stamp duty. LBTT rates for 2024-25 are shown below.

Property value

LBTT rate

Up to £145,000

Zero

The next £105,000 (the portion from £145,001 to £250,000)

2%

The next £75,000 (the portion from £250,001 to £325,000)

5%

The next £425,000 (the portion from £325,001 to £750,000)

10%

The remaining amount (the portion above £750,000)

12%

Source: Revenue Scotland, LBTT Calculating Tax – rates and bands

Wales

Income tax

If you live in Wales you pay income tax rates set by the Welsh Government.

Currently, the rates of income tax paid by Welsh taxpayers are the same as those paid by English and Northern Irish taxpayers.

The table shows the tax rates you’ll pay in each band if you have a standard Personal Allowance of £12,570.
 

 

Band

Taxable income

Tax rate

Personal Allowance

Up to £12,570

0%

Basic rate

£12,571 to £50,270

20%

Higher rate

£50,271 to £125,140

40%

Additional rate

Over £125,140

45%

Learn more about the key tax rates, limits and allowances in England and Northern Ireland

Stamp duty 

If you’re buying a property in Wales, you’ll pay the Welsh government’s Land Transaction Tax (LTT), rather than stamp duty. There’s no LTT to pay for buyers purchasing homes costing up to £225,000.

The following table shows the main residential LTT rates and bands in Wales

Property value

LTT rate

Up to £225,000

Zero

The next £175,000 (the portion from £225,001 to £400,000)

6%

The next £350,000 (the portion from £400,001 to £750,000)

7.5%

The next £750,000 (the portion from £750,001 to £1.5M)

10%

Above 1.5M

12%

Northern Ireland

Tax rates in Northern Ireland are currently the same as in England.

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