The Scottish Government is creating a new 45 per cent tax band for higher earners in the country.
It will be brought in for people earning between £75,000 and £125,140, meaning they will pay more tax than they currently do.
Finance secretary Shona Robison revealed the tax hike as she unveiled the government's budget for next year.
She said there would be no changes to tax rates for starter (19 per cent), basic (20 per cent), intermediate (21 per cent) and higher (42 per cent).
She also increased the top rate - for those earning over £125,140 - by 1p, to 48p in the pound.
It has been estimated these changes will raise £82m next year.
The new band has been brought in by the SNP Government to help plug a £1.5 billion funding shortfall - alongside a series of spending cuts.
Ms Robison told Holyrood on Tuesday that the budget for 2024-25 was the toughest since the Scottish Parliament was re-established in 1999.
She told MSPs: "We're fighting Westminster austerity with one hand tied behind our back.
"Last month's Autumn Statement was a worst case scenario for Scotland."
The announcement means Scotland will have six income tax bands, while the rest of the UK has only three.
Ms Robison also confirmed the Scottish Government will fully fund the council tax freeze which was promised by First Minister Humza Yousaf at the SNP's annual conference earlier this year.
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