The Scottish Government revealed their draft budget which includes no changes to income tax rates and bands in the upcoming financial year.

Finance Secretary Kate Forbes has proposed that income tax thresholds will increase in line with inflation.

This means that tax thresholds for the basic, starter and higher rates would increase by 0.5%, while the highest threshold of £150,000 will stay the same.

Ms Forbes said: "We provide certainty and stability for Income Tax payers, with all Scottish taxpayers paying slightly less Income Tax in 2021-22 than in 2020-21, based on their current income."

She said this would see most Scottish taxpayers pay less than their counterparts elsewhere in the UK.

However, this may change as the UK Chancellor Rishi Sunak, will announce his Budget statement on March 3.

READ MORE: Council tax frozen amid Scottish economic growth warning

HeraldScotland:

Ms Forbes also announced a council tax freeze, with local authorities to be given a three per cent rise, the equivalent of an extra £90m.

Tax consultant Deloitte has put together examples spanning different salaries.

What are the proposed rates?

Expected number and proportion of Scottish taxpayers by marginal rate, 2021-22

HeraldScotland:

The lower earner

£15,000 salary

If you earn a salary of £15,000 in 2021-22, and have no other income, the personal allowance of £12,570 (assuming this is increased in line with the Consumer Prices Index, as planned) will be deducted and £2,430 will be taxable.

If you are resident in Scotland, your income tax calculation will be as follows;

Scottish starter rate - £2,097 at 19%= £398.43

Scottish basic rate - £333 at 20% = £66.60

Total tax = £ 465.03

This is a decrease of £14.12 compared to 2020-21 due to the expected increase in the personal allowance from £12,500 to £12,570 and the small increase in the starter band from £2,085 to £2,097.

If you earned the same sum of money but were not resident in Scotland the full £2,430 would be taxable at 20% (UK basic rate) producing an income tax bill of £486. Therefore, you would pay £20.97 less as a resident of Scotland.

READ MORE: Letters: Why should we have to doff our caps when given our own money?

HeraldScotland: Finance Secretary Kate Forbes preparing her speech in her office in Holyrood, Edinburgh, ahead of delivering the Scottish Budget to the Scottish Parliament.Finance Secretary Kate Forbes preparing her speech in her office in Holyrood, Edinburgh, ahead of delivering the Scottish Budget to the Scottish Parliament.

The medium to higher earners

£33,000 salary

If you earn a salary of £33,000 in 2021-22 and have no other income, the personal allowance of £12,570 will be deducted and £20,430 will be taxable. If you are resident in Scotland, your income tax will be as follows:

Scottish starter rate - £2,097 at 19% = £398.43

Scottish basic rate - £10,629 at 20% = £ 2,125.80

Scottish intermediate rate - £7,704at 21% = £1,617.84

Tax total = £ 4,142.07

This is a decrease of £15.50 compared to 2020-21 due to the increase in the personal allowance and the small inflationary increases in the starter, basic and intermediate rate bands.

If you were resident elsewhere in the UK, the full £20,430 would be taxable at 20%, giving an income tax liability of £4,086. A Scottish resident would pay an additional £56.07 in income tax compared with living elsewhere in the UK.

HeraldScotland: Chancellor of the Exchequer Rishi Sunak, who has delyaed the UK budget until March, something Finance Secretary Kate Forbes said would cause "significant difficulties" in the process north of the border.Chancellor of the Exchequer Rishi Sunak, who has delyaed the UK budget until March, something Finance Secretary Kate Forbes said would cause "significant difficulties" in the process north of the border.

£50,000 salary

If you earn a salary of £50,000 in 2021-22 and have no other income, £37,430 will be taxable after deduction of the £12,570 personal allowance.

If you are resident in Scotland, the tax calculation will be as follows;

Scottish starter rate - £2,097 at 19% = £398.43

Scottish basic rate - £10,629 at 20% = £ 2,125.80

Scottish intermediate rate - £18,366 at 21% =£3,856.86

Scottish higher rate - £6,338 at 41%= £2,598.58

Total tax = £ 8,979.67

This is a decrease of £61.90 compared to 2020-21 due to the increase in the personal allowance and the small inflationary increases in the starter, basic and intermediate rate bands.

If you were not resident in Scotland, the full £37,430 will be taxable at 20% (UK basic rate) producing an income tax bill of £7,486. You would therefore be paying £1,493.67 more in tax as a resident of Scotland.

READ MORE: Analysis: A shrewd political budget from Kate Forbes but the Chancellor has yet to speak

The higher earner

£200,000 salary

If you earn a salary of £200,000 in 2021-22 and have no other income, you are not entitled to a personal allowance because your income exceeds £125,140. The taxable income is therefore £200,000.

If you are a resident in Scotland, your income tax breaks down is as follows:

Scottish starter rate - £2,097 at 19% = £398.43

Scottish basic rate - £10,629 at 20% = £ 2,125.80

Scottish intermediate rate - £18,366 at 21% =£3,856.86

Scottish higher rate - £118,908 at 41% = £ 48,752.28

Scottish additional rate - £50,000 at 46% = £23,000

Total tax = £78,133.37

This is a decrease of £33.20 compared to 2020-21 due to small increases in the starter, basic rate and intermediate rate bands.

If you are a resident elsewhere in the UK, on this salary you would pay £74,960 in tax (assuming the UK basic rate band is increased in line with the Consumer Prices Index to £37,700 as planned) - £3,173.37 less than north of the border.