Do you scale up tolerances when scaling dimensions?

That's correct the tolerance really has no direct relationship to the size of the piece, it's all about fit and function
The tolerances do not scale, they have a direct relationship to the type fit you are looking for and the size of the parts you are making, consult "Machinery' Handbook" "limits and fits" section which has a set of charts which will define the required tolerance for the parts based upon the new scaled sizes, you will need an understanding on the type fit you require.
 
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