Scottish Income Tax Bands 2026/27
Scottish Income Tax bands 2026/27: the six rates and thresholds, what stays UK-wide, and Income Tax compared with the rest of the UK.
Scottish Income Tax bands 2026/27
| Band | Rate | Total income range | Notes |
|---|---|---|---|
| Personal Allowance | 0% | £0 - £12,570 | UK-wide, NOT Scottish-devolved. Reduced £1 per £2 of income over £100,000. |
| Starter rate | 19% | £12,571 - £16,537 | Next £3,967 of taxable income. Lower than the rest-of-UK 20% basic rate. |
| Scottish basic rate | 20% | £16,538 - £29,526 | Next £12,989 of taxable income. Same percentage as the rest-of-UK basic rate. |
| Intermediate rate | 21% | £29,527 - £43,662 | Next £14,136 of taxable income. Scottish-only band. Higher than the 20% rest-of-UK basic rate for this slice. |
| Higher rate | 42% | £43,663 - £75,000 | Next £31,338 of taxable income. Starts below the rest-of-UK £50,271, and the rate is higher (42% vs 40%). |
| Advanced rate | 45% | £75,001 - £125,140 | Next £62,710 of taxable income. Scottish-only band, introduced in 2024/25. Higher than the rest-of-UK 40% higher rate. |
| Top rate | 48% | £125,141+ | Higher than the rest-of-UK 45% additional rate. |
The £12,570 Personal Allowance is UK-wide and NOT Scottish-devolved. It tapers by £1 per £2 of income above £100,000 (UK-wide rule). The Scottish Parliament sets the rates and band limits on income above the Personal Allowance, not the allowance itself.
Scotland vs rest-of-UK at 9 income levels
Income Tax only, from our salary engine, standard Personal Allowance and no other income. NI, dividend tax and savings tax are UK-wide and the same in both systems. Computation uses the 2026/27 bands.
| Gross income | Scotland IT | Rest of UK IT | Scotland vs RUK | Scotland effective rate |
|---|---|---|---|---|
| £20,000 | £1,446 | £1,486 | -£40 | 7.2% |
| £30,000 | £3,451 | £3,486 | -£35 | 11.5% |
| £45,000 | £6,882 | £6,486 | +£396 | 15.3% |
| £60,000 | £13,182 | £11,432 | +£1,750 | 22.0% |
| £80,000 | £21,732 | £19,432 | +£2,300 | 27.2% |
| £100,000 | £30,732 | £27,432 | +£3,300 | 30.7% |
| £125,000 | £47,607 | £42,432 | +£5,175 | 38.1% |
| £150,000 | £59,634 | £53,703 | +£5,931 | 39.8% |
| £200,000 | £83,634 | £76,203 | +£7,431 | 41.8% |
At £20,000 and £30,000 the starter rate makes Scottish tax slightly lower (-£40 and -£35); higher up the gap widens with income: +£2,300 at £80,000 and +£7,431 at £200,000. The reasons are the lower Scottish higher-rate threshold (£43,663 against £50,271), the 42% Scottish higher rate against 40%, and the Advanced (45%) and Top (48%) rates.
What is NOT devolved to Scotland
The Scottish Parliament sets rates and band limits for Scottish taxpayers' non-savings, non-dividend income. These stay UK-wide:
- £12,570 Personal Allowance — including the £100,000-£125,140 taper
- National Insurance — rates and thresholds UK-wide. Scottish employees pay employee Class 1 at 8% / 2%, the same as the rest of the UK
- Savings interest tax — £1,000 / £500 / £0 Personal Savings Allowance, £5,000 starting rate for savings, and UK rates of 20% / 40% / 45%
- Dividend income — £500 allowance, 10.75% / 35.75% / 39.35% rates UK-wide
- Capital Gains Tax — 18% / 24% UK-wide
- Inheritance Tax — UK-wide
- VAT — UK-wide
- Stamp Duty Land Tax — not used in Scotland, which has its own Land and Buildings Transaction Tax (LBTT)
So a Scottish taxpayer with savings or dividend income pays Scottish rates on employment, pension and self-employed income but UK rates on the savings and dividends, on the same Self Assessment return.
Are you a Scottish taxpayer?
Scottish taxpayer status under section 80D Scotland Act 1998 applies for any UK tax year in which you are:
- UK-resident under the Statutory Residence Test for the tax year, AND
- One of:
- Close-connection test (section 80E): your only place of residence in the UK is in Scotland and you live there for at least part of the year; or, if you have two or more UK places of residence, your main one is in Scotland for more of the year than it is in any other part of the UK, and you live at a place of residence in Scotland for at least part of the year (s.80E(3)); OR
- Day-count test (condition B, section 80D(3); days counted under section 80F): you have no close connection with England, Wales or Northern Ireland, and you spend more days of the year in Scotland than in any other part of the UK; OR
- Parliamentarian test (condition C): you are an MP for a Scottish constituency or a Member of the Scottish Parliament for all or part of the year
HMRC uses the address it holds for you, and Scottish taxpayers get an S-prefixed tax code (S1257L is the Scottish equivalent of the standard 1257L code). If you move, update your address with HMRC. Where you have homes in more than one part of the UK, HMRC looks at which is your main home. The status applies to the whole tax year; there is no mid-year apportionment.
Related calculators and guides
- Salary calculator (Scotland) - PAYE take-home with Scottish bands applied.
- Personal Allowance guide - the UK-wide allowance that underpins Scottish tax.
- £100k PA taper trap - the taper zone, where Scottish taxpayers face a 67.5% marginal Income Tax rate.
- National Insurance rates - UK-wide NI (NOT devolved to Scotland).
- Dividend allowance - UK-wide dividend tax (NOT devolved).
- Personal Savings Allowance - UK-wide savings tax (NOT devolved).
- LBTT calculator - Scottish property tax (replaces SDLT in Scotland).
- Budget 2026 summary - latest Budget context.
Worked examples
Frequently asked questions
What are the Scottish Income Tax bands for 2026/27?
Scotland has six Income Tax rates for 2026/27, against three in the rest of the UK. The bands (after the £12,570 UK-wide Personal Allowance): - Starter rate 19% on the next £3,967 of taxable income (to £16,537) - Scottish basic rate 20% on the next £12,989 of taxable income (to £29,526) - Intermediate rate 21% on the next £14,136 of taxable income (to £43,662) - Higher rate 42% on the next £31,338 of taxable income (to £75,000) - Advanced rate 45% on the next £62,710 of taxable income (to £125,140) - Top rate 48% above £125,140 The Scottish Parliament sets them by a Scottish rate resolution under section 80C of the Scotland Act 1998; subsections (2A) to (2C) were substituted by section 13(3) of the Scotland Act 2016. The Personal Allowance, savings and dividend tax, and National Insurance stay UK-wide.
How does Scottish Income Tax differ from rest-of-UK?
Scotland has six rates against three, and its higher rate starts at £43,663 instead of £50,271, at 42% rather than 40%. A Scottish taxpayer earning £50,000 pays the higher rate on £6,338 that would be taxed at 20% elsewhere. On our engine's figures, compared with the rest of the UK a Scottish taxpayer pays £35 less a year at £30,000, £65 more at £40,000, £2,300 more at £80,000 and £5,931 more at £150,000.
Am I a Scottish taxpayer for Income Tax purposes?
For a tax year you must be UK resident and meet one of three conditions in section 80D of the Scotland Act 1998 (inserted by the Scotland Act 2012). A: a close connection with Scotland under section 80E, meaning your only UK place of residence is in Scotland, or, with two or more, your main place of residence is in Scotland for more of the year than in any other part of the UK. B: no close connection with any part of the UK, and more days in Scotland than in any other part (counted by where you are at midnight). C: you are an MP for a Scottish constituency or a Member of the Scottish Parliament for some or all of the year. HMRC sets this out in STTG2000.
How is Scottish Income Tax collected?
Through the normal UK PAYE and Self Assessment systems, run by HMRC. If you pay Scottish Income Tax your tax code starts with S (S1257L with the standard Personal Allowance), which tells your employer or pension provider to use the Scottish rates. If you move to or from Scotland, tell HMRC your new address; Scottish taxpayer status applies to the whole tax year, and the rate is backdated to 6 April of the year you moved.
What is NOT devolved to Scotland?
The Personal Allowance (£12,570, tapered above £100,000); National Insurance; tax on savings interest, with the Personal Savings Allowance (£1,000 / £500 / £0), the £5,000 starting rate for savings and UK rates of 20% / 40% / 45%; dividends, with the £500 allowance and rates of 10.75% / 35.75% / 39.35%; Capital Gains Tax (18% / 24%); Inheritance Tax; and VAT. Property purchases in Scotland pay Land and Buildings Transaction Tax rather than Stamp Duty Land Tax.
How much extra Scottish tax does a higher-rate earner pay?
A Scottish higher-rate earner pays more Income Tax than a rest-of-UK earner on the same gross salary. Worked comparisons from our salary engine (Income Tax only, standard allowance, no other income): - £40,000: Scotland £5,551 vs rest of UK £5,486 - Scotland +£65 - £60,000: Scotland £13,182 vs rest of UK £11,432 - Scotland +£1,750 - £80,000: Scotland £21,732 vs rest of UK £19,432 - Scotland +£2,300 - £100,000: Scotland £30,732 vs rest of UK £27,432 - Scotland +£3,300 - £125,000: Scotland £47,607 vs rest of UK £42,432 - Scotland +£5,175 - £150,000: Scotland £59,634 vs rest of UK £53,703 - Scotland +£5,931 - £200,000: Scotland £83,634 vs rest of UK £76,203 - Scotland +£7,431 At £200,000 a Scottish taxpayer pays £7,431 a year more. The figures above £100,000 include the Personal Allowance taper, which applies on both sides of the border.
What is the Scottish higher-rate threshold for 2026/27?
The Scottish higher rate (42%) starts at £43,663, against £50,271 for the rest-of-UK higher rate. That is £12,570 Personal Allowance + £3,967 starter band + £12,989 basic band + £14,136 intermediate band, plus £1. The 21% intermediate rate covers income from £29,527 to £43,662, which would be taxed at 20% elsewhere in the UK.
How do Scottish bands affect pension salary sacrifice savings?
Salary sacrifice saves Income Tax at your Scottish marginal rate plus employee NI (8% in the main band, 2% above the Upper Earnings Limit). On £60,000, sacrificing £10,000 saves a Scottish taxpayer £4,200 Income Tax and £216 NI, against £3,946 and £216 in the rest of the UK. From April 2029 only the first £2,000 a year of salary-sacrificed pension contributions will be free of NI.
How does Scottish tax interact with the £100,000 PA taper?
The taper is UK-wide: the Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000, reaching nil at £125,140. In 2026/27 the Scottish Advanced rate (45%) applies across that range, so the marginal Income Tax rate is 67.5%, against 60% in the rest of the UK, plus 2% NI. A Scottish taxpayer on £125,000 who sacrifices £25,000 into a pension saves £16,875 Income Tax and £500 NI on our engine.
Will Scottish tax bands change in future?
The Scottish Parliament sets the rates and bands each year in a Scottish rate resolution alongside the Scottish Budget. The six-rate structure with the Advanced rate has applied since 2024/25. Any change for later years will be published by the Scottish Government; the calculator is updated when it is.
How does Scottish tax compare with Welsh Rates of Income Tax (WRIT)?
The Senedd can set Welsh rates for the basic, higher and additional rates (Government of Wales Act 2006 s.116D). For 2026/27 the Welsh rates and bands match the rest of the UK (20% / 40% / 45%), so a Welsh taxpayer pays the same Income Tax as an English one; Welsh tax codes start with C. Scotland's power is wider: the Scottish Parliament sets its own rates and band limits and has added the starter, intermediate and advanced rates.
What about Scottish taxpayer relocation mid-year?
Status is decided for the whole tax year; there is no apportionment. GOV.UK says you pay Scottish Income Tax if you move to Scotland and live there for longer than anywhere else in the UK during the tax year. Someone who moves from London to Edinburgh on 1 October spends 178 days of the year (6 April to 30 September) with their main home in England and 187 days in Scotland, so they are a Scottish taxpayer for that whole year, backdated to 6 April. Tell HMRC your new address when you move.