Abstract—We study the effect of systematic variations in stellar parallaxes over the celestial sphere on the results of a kinematic analysis of stellar proper motions. Our approach is based on the representation of stellar parallaxes by scalar spherical harmonics and on the decomposition of stellar proper motions into a system of vector spherical harmonics. We derive theoretical relations that relate the coefficients of the decomposition of stellar proper motions into toroidal and spheroidal harmonics to the coefficients of the decomposition of stellar parallaxes into scalar spherical harmonics. We have established that the systematic variations of parallaxes over the celestial sphere distort all parameters of the linear Ogorodnikov–Milne model and can be responsible for the appearance of beyond-the-model harmonics. We have performed a kinematic analysis of the proper motions of blue-white and red giants based on Hipparcos data. The parallaxes of blue-white giants show a strong dependence on Galactic latitude