England vs Scotland: Income Tax compared, 2026/27
2026/27 Income Tax in England and Scotland side by side - six Scottish bands against three, and the salary where Scotland starts costing more.
Scotland has set its own rates and bands on earned income since April 2017, under section 80C(2A) to (2C) of the Scotland Act 1998 - substituted by section 13(3) of the Scotland Act 2016, in force from 30 November 2016. The Scotland Act 2012 came earlier and did something narrower: it gave Holyrood one rate, not a set of rates and bands. For 2026/27 that means six bands against the rest of the UK's three, and a higher rate that starts considerably earlier. What it does not mean is a separate tax system: the Personal Allowance, National Insurance, dividend and savings rates, Capital Gains Tax and Inheritance Tax are all reserved and identical.
The bands side by side
Both tables below are the same £12,570 Personal Allowance plus the bands each government sets, expressed as gross salary rather than as taxable income, because that is the figure on a payslip.
England, Wales and Northern Ireland
| Band | Salary | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland
| Band | Salary | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Scottish basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
The band names are Scotland's own and the ranges are as gov.scot publishes them. Note that the top of the Scottish advanced rate and the start of the UK additional rate coincide at £125,140 - the point the tapered Personal Allowance reaches zero, which is a UK-wide rule.
Where the crossover is
On 2026/27 rates a Scottish taxpayer pays less Income Tax than someone on the same salary in England up to £33,493, and more from £33,494 upward. The advantage below the crossover is real but small - it reaches £39.67 a year at £16,537 and sits flat at that figure across the Scottish basic-rate band, because it comes from one 19% band a single percentage point below the basic rate. From £29,527 the 21% intermediate rate takes a point back on every pound, until the advantage is gone at the crossover.
Above the crossover the gap grows, and it grows fastest where the two higher rates are out of step. The Scottish 42% rate starts at £43,663 while the UK 40% rate waits until £50,271. Across that £6,608 of salary a Scottish taxpayer is paying 42% on income the rest of the UK is taxing at 20%.
Take-home compared
Income Tax and take-home at thirteen salaries. Take-home is after Income Tax and employee National Insurance, with no pension contribution and no student loan - the same baseline on both sides, so the column that matters is the difference.
| Salary | Tax (England) | Tax (Scotland) | Difference | Take-home (England) | Take-home (Scotland) |
|---|---|---|---|---|---|
| £15,000 | £486 | £462 | Scotland -£24 | £14,320 | £14,344 |
| £20,000 | £1,486 | £1,446 | Scotland -£40 | £17,920 | £17,959 |
| £25,000 | £2,486 | £2,446 | Scotland -£40 | £21,520 | £21,559 |
| £30,000 | £3,486 | £3,451 | Scotland -£35 | £25,120 | £25,155 |
| £35,000 | £4,486 | £4,501 | Scotland +£15 | £28,720 | £28,705 |
| £40,000 | £5,486 | £5,551 | Scotland +£65 | £32,320 | £32,255 |
| £45,000 | £6,486 | £6,882 | Scotland +£396 | £35,920 | £35,524 |
| £50,000 | £7,486 | £8,982 | Scotland +£1,496 | £39,520 | £38,024 |
| £60,000 | £11,432 | £13,182 | Scotland +£1,750 | £45,357 | £43,607 |
| £75,000 | £17,432 | £19,482 | Scotland +£2,050 | £54,057 | £52,007 |
| £100,000 | £27,432 | £30,732 | Scotland +£3,300 | £68,557 | £65,257 |
| £125,000 | £42,432 | £47,607 | Scotland +£5,175 | £78,057 | £72,882 |
| £150,000 | £53,703 | £59,634 | Scotland +£5,931 | £91,286 | £85,355 |
Run your own figure on the salary calculator with the region toggle, or read the Scottish bands in detail.
What Scotland does not set
The devolved power is narrow: rates and thresholds on non-savings, non-dividend income. Everything below is UK-wide and identical on both sides of the border.
- The Personal Allowance - £12,570, tapering above £100,000. gov.scot publishes the Scottish bands as "based on the UK Personal Allowance".
- National Insurance - 8% between £12,570 and £50,270, then 2%. Worth holding onto when comparing take-home: a large part of the deduction on a mid salary does not change at the border at all.
- Dividends and savings interest - GOV.UK: "You'll pay the same tax as the rest of the UK on dividends and savings interest." A company director in Glasgow pays Scottish rates on salary and UK rates on dividends, in the same year. The salary vs dividend calculator models that split.
- Capital Gains Tax and Inheritance Tax - reserved, and the same everywhere.
Property transaction tax is the opposite case: it is fully devolved and it is a different tax, not a different rate. Land and Buildings Transaction Tax applies in Scotland where Stamp Duty Land Tax applies in England and Northern Ireland, and Land Transaction Tax in Wales. Council Tax is set by each local authority under a separate devolved framework again.
Three things that catch people out
Your tax code gains an S
HMRC prefixes a Scottish taxpayer's code with S - 1257L becomes S1257L - and payroll applies the Scottish bands off the back of it. You do not apply; it follows the address HMRC holds. Which is exactly why telling them about a move matters: a stale address means a year of deductions on the wrong bands. The tax code explainer covers what each code means.
Pension relief has more rates to claim
Nobody loses the 1% at the bottom. GOV.UK: "If your rate of Income Tax in Scotland is 19% your pension provider will claim tax relief for you at a rate of 20%. You do not need to pay the difference." Above the basic rate, though, a relief-at-source scheme still only claims 20% at source, so the rest is claimed on a Self Assessment return - and with six bands there are four such claims rather than two: 1% against income taxed at 21%, 22% against 42%, 25% against 45%, 28% against 48%. The pension contribution calculator works the relief through.
It is where you live, not where you work
Commuting across the border does not change which rates apply; your main place of residence does. Someone living in Berwick and working in Edinburgh is not a Scottish taxpayer, and someone living in Dumfries and working in Carlisle is. STTG2000 sets out the tests in full, and day-counting only comes into it when the residence tests do not settle the question.
Frequently asked questions
At what salary do you start paying more tax in Scotland?
On 2026/27 rates, £33,494. Below that a Scottish taxpayer pays slightly less Income Tax than someone on the same salary in England, because Scotland's 19% starter rate applies to the first slice of taxable income. Above it the 21% intermediate rate has more than cancelled that out. The gap then widens sharply once the Scottish higher rate starts, well before the UK one does.
Does Scotland set National Insurance as well as Income Tax?
No. National Insurance is reserved to the UK government and is identical across all four nations - the same 8% employee rate between £12,570 and £50,270, then 2% above. That matters for take-home: NI is a large share of the deduction on a mid salary, and none of it changes at the border.
Which income does the Scottish rate apply to?
Non-savings, non-dividend income - wages, pension income, rental profits, self-employed profits. GOV.UK puts it as "wages, pension and most other taxable income", and adds that "You'll pay the same tax as the rest of the UK on dividends and savings interest". Capital Gains Tax and Inheritance Tax are also UK-wide.
Who counts as a Scottish taxpayer?
It is about where you live, not where you work. HMRC's Scottish Taxpayer Technical Guidance (STTG2000) sets out the tests: you are a Scottish taxpayer for a tax year if you are UK resident and either you are a Scottish Parliamentarian, or you have a close connection to Scotland - a single place of residence which is in Scotland, or, with more than one, your main place of residence in Scotland for at least as much of the year as anywhere else in the UK. Failing those, it comes down to counting days. The powers sit in sections 80D to 80F of the Scotland Act 1998, inserted by the Scotland Act 2012.
Is the Personal Allowance different in Scotland?
No. The Personal Allowance is reserved to the UK government and is £12,570 in both, and it tapers away above £100,000 on the same £1-for-£2 rule in both. gov.scot publishes the Scottish bands explicitly "based on the UK Personal Allowance".
Do Scottish taxpayers get less pension tax relief at the 19% starter rate?
No. GOV.UK is explicit: "If your rate of Income Tax in Scotland is 19% your pension provider will claim tax relief for you at a rate of 20%. You do not need to pay the difference." Above the basic rate it works the other way - a Scottish taxpayer claims the extra through Self Assessment, and because there are more bands there are more rates to claim: 1% against income taxed at 21%, 22% against 42%, 25% against 45% and 28% against 48%.
Does my tax code change if I move to Scotland?
Yes - HMRC adds an S prefix, so 1257L becomes S1257L, and your employer's payroll then applies the Scottish bands. You do not apply for it. Tell HMRC when you move, because the code follows your address on their record, and a wrong one means a year of deductions at the wrong band and a reconciliation afterwards.