Thousands of Scots will hand over more cash to the taxman after Acting Finance Secretary John Swinney dropped the threshold for the highest earners across the country.
Announcing the Scottish Government's Budget at Holyrood the Deputy First Minister revealed that top rate threshold, which is currently set at £150,000, will be reduced to £125,140 from April next year.
The freezing or lowering of tax brackets is known as a stealth tax as more people are pulled into paying higher tax as wages and prices rise.
Swinney was under pressure to follow Chancellor Jeremy Hunt who announced similar changes during the UK Government's Budget last month.
The announcement by Swinney goes against the SNP's 2021 manifesto which stated: "Freeze income tax rates and bands and increase thresholds by a maximum of inflation."
Swinney told MSPs: "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."
What are the current income tax rates?
Personal Allowance (up to £12,570) - 0%
Starter Rate (£12,571 to £14,732) - 19%
Basic Rate (£14,733 to £25,688) - 20%
Intermediate Rate (£25,689 to £43,662) - 21%
Higher Rate (£43,663 to £150,000) - 41%
Top Rate (over £150,000) - 46%
What are the new rates?
Personal Allowance (up to £12,570) - 0%
Starter Rate (£12,571 to £14,732) - 19%
Basic Rate (£14,733 to £25,688) - 20%
Intermediate Rate (£25,689 to £43,662) - 21%
Higher Rate (£43,663 to £125,139) - 42%
Top Rate (over £125,140) - 47%
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