Scots will have to pay more money in taxes after new plans were announced in Thursday's Scottish Budget.
Deputy First Minister John Swinney updated the country on the Scottish government's financial plans..
Those earning over £43,000-a-year or more will see their taxes increased. These changes will come into effect from April 2023 onwards and will widen the gap between payments in Scotland and the rest of the UK.
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Plans to drop the threshold for the highest earners across the country was also announced. The top rate threshold, which is currently set at £150,000, will be reduced to £125,140.
In his Budget statement to MSPs, Swinney said the extra cash raised would be spent on the NHS.
So, what does this mean for each person in Scotland? Read on below to find out more.
Tax increases in Scotland from April 2023 onwards
Higher tax rate bands
Today, the Deputy First Minister said that he is planning to put up the Higher Rate of tax earners - those who earn between £43,663 and £150,000 - from 41 pence to 42 pence in the pound.
The Top Rate - those who earn over £150,000 - will go up from 46 pence to 47 pence. However, the Top Rate threshold of £150,000 will be lowered to approximately £125,000, which is in line with Chancellor Jeremy Hunt's statement in November.
Approximately 500,000 earners in Scotland are in the Higher and Top tax brackets, and will be hit hardest by the increases.
What are the current income tax rates for lower and higher earners?
Personal Allowance (up to £12,570) - zero percent
Starter Rate (£12,571 to £14,732) - 19 percent
Basic Rate (£14,733 to £25,688) - 20 percent
Intermediate Rate (£25,689 to £43,662) - 21 percent
Higher Rate (£43,663 to £150,000) - 41 percent
Top Rate (over £150,000) - 46 percent
What are the new income tax rates for lower and higher earners?
Personal Allowance (up to £12,570) - zero percent
Starter Rate (£12,571 to £14,732) - 19 percent
Basic Rate (£14,733 to £25,688) - 20 percent
Intermediate Rate (£25,689 to £43,662) - 21 percent
Higher Rate (£43,663 to £125,139) - 42 percent
Top Rate (over £125,140) - 47 percent
Swinney told the chamber: "In this Budget, we are asking those on higher incomes to contribute more in taxation than those on lower incomes - but with the majority of people in Scotland still paying less in taxation than if they lived elsewhere in the UK.
"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.
"I also intend to make no changes to the starter, basic and intermediate rates to protect those on lower incomes. I have decided to increase the higher and top rates of tax by 1p each to 42p and 47p respectively."
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