Scottish income tax rates and bands 2026/27
The 2026/27 Scottish income tax rates and bands, how they compare with the rest of the UK, who pays them, and what you pay at common incomes.
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Scottish income tax rates for 2026/27
For the 2026 to 2027 tax year, which runs from 6 April 2026 to 5 April 2027, Scotland has six income tax bands. The table assumes the standard Personal Allowance of £12,570.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| 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% |
Compared with 2025 to 2026, the starter band now ends at £16,537 instead of £15,397, and the basic band at £29,526 instead of £27,491. The higher, advanced and top rate thresholds are the same as last year.
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How Scotland compares with the rest of the UK
England, Wales and Northern Ireland have three bands: 20% from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above that. The table shows the income tax at common incomes.
| Income | Scotland | Rest of the UK | Difference in Scotland |
|---|---|---|---|
| £20,000 | £1,446.33 | £1,486.00 | £39.67 less |
| £30,000 | £3,451.07 | £3,486.00 | £34.93 less |
| £40,000 | £5,551.07 | £5,486.00 | £65.07 more |
| £50,000 | £8,982.05 | £7,486.00 | £1,496.05 more |
| £80,000 | £21,732.05 | £19,432.00 | £2,300.05 more |
| £150,000 | £59,634.35 | £53,703.00 | £5,931.35 more |
These figures are income tax only, for someone with the standard Personal Allowance and no savings or dividend income. Up to about £33,500, you pay slightly less in Scotland. Above that you pay more, and the gap grows once the 42% higher rate starts at £43,663.
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Where the rates bite hardest
National Insurance thresholds are the same across the UK, so they don’t line up with the Scottish bands. Between £43,663 and £50,270, an employee in Scotland pays 42% income tax and 8% National Insurance, which is 50p of every extra pound. A self-employed person on the same profit pays 42% plus 6% Class 4, which is 48p.
Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 you earn. In Scotland, that makes the income tax on each extra pound 67.5%, before National Insurance. Pension contributions can bring your income back below £100,000, so it’s worth planning before the tax year ends.
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Who pays Scottish income tax
You pay Scottish income tax if you live in Scotland. Where you work doesn’t matter, so someone who lives in Glasgow and works in Carlisle pays Scottish rates, and someone who lives in Carlisle and works in Glasgow doesn’t.
If you have a home in Scotland and another elsewhere in the UK, what counts is your main home, which is usually where you live and spend most of your time. If you move to or from Scotland, you pay Scottish income tax for that tax year if you lived in Scotland for longer than anywhere else in the UK.
If you’re employed or get a pension, your tax code starts with an S, for example S1257L. If you file a Self Assessment return, there’s a box to tell HMRC you pay Scottish income tax, and our Self Assessment service checks this for you. Employers can find out how S codes work in practice through our payroll service.
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Savings, dividends and other income
Scottish rates apply to wages, pensions, self-employed profits and rental income. Savings interest and dividends are taxed at UK rates, even if you live in Scotland. For 2026 to 2027, dividends above the £500 dividend allowance are taxed at 10.75%, 35.75% or 39.35%.
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What happens in 2027/28
The Scottish Government sets the 2027 to 2028 rates in its next Budget. The UK Budget on 28 October 2026 didn’t change Scottish income tax, but it did give the Scottish Government the power to set its own rates on property income from April 2027. We’ll update this page when the new rates are published.
Our Budget 2026 guide for small businesses in Scotland covers the UK-wide changes that start in April 2027.
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Work out your own figure
If you’re self-employed, the self-employed tax calculator estimates your income tax and Class 4 National Insurance with Scottish or rest-of-UK rates, and shows the tax in each band.
Sources: GOV.UK Income Tax in Scotland and HMRC rates and thresholds for employers 2026 to 2027, checked on 28 October 2026.