What are the Scottish income tax bands for 2026/27?
The Scottish Parliament sets the income tax rates and bands on earnings for people who live in Scotland. The Personal Allowance is still set for the whole UK. This is how the bands look with the standard allowance:
| Band | 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% |
Like everywhere in the UK, each rate only applies to the slice of income inside its band. Reaching the 42% band does not mean all of your pay is taxed at 42%.
Do you pay more tax in Scotland?
Low and middle earners pay a little less in Scotland, because of the 19% starter band and wider lower bands. Above about £33,500 the 21% intermediate rate and then the 42% higher rate, which starts much lower than in the rest of the UK, make Scotland more expensive. These are the 2026/27 figures from our engine:
| Salary | Scotland | Rest of UK | Difference |
|---|---|---|---|
| £20,000 | £1,446 | £1,486 | −£40 |
| £30,000 | £3,451 | £3,486 | −£35 |
| £40,000 | £5,551 | £5,486 | +£65 |
| £50,000 | £8,982 | £7,486 | +£1,496 |
| £75,000 | £19,482 | £17,432 | +£2,050 |
| £100,000 | £30,732 | £27,432 | +£3,300 |
A plus sign means Scotland charges more. At £30,000 the gap is small, a few pounds a month in Scotland’s favour. At £75,000 it is about £171 a month the other way.
What changed from 2025/26?
The rates stayed the same. The starter band now runs to £16,537 (it was £15,397), and the basic band to £29,526 (it was £27,491). The higher, advanced and top rate thresholds did not move.
So most people pay slightly less. On £25,000, Scottish income tax went from £2,457.73 to £2,446.33, a saving of £11.40 a year.
How are higher earners taxed in Scotland?
The 42% rate starts at £43,663 in Scotland, against £50,271 in the rest of the UK. Between those two points, a Scottish taxpayer pays 42% income tax plus 8% National Insurance on each extra pound: 50p in total, where someone in England pays 28p. On £60,000 the yearly difference is £1,750. Above £75,000 the 45% advanced rate applies, and above £125,140 the 48% top rate.
How do student loans work in Scotland?
If you borrowed from the Student Awards Agency Scotland, you are on Plan 4. Its threshold is the highest of the undergraduate plans, £33,795 a year in 2026/27, so repayments start later than for graduates from England or Wales. The 9% rate is the same.
Who counts as a Scottish taxpayer?
It depends on where you live, not where your employer is. Someone living in Glasgow and working for a London firm pays Scottish rates; someone living in Carlisle and working in Scotland does not. HMRC puts an S at the start of your tax code, such as S1257L, and your employer’s payroll uses Scottish rates from then on. If you move to or from Scotland during a year, GOV.UK explains which rates apply.
If you live in Scotland and your code has no S, tell HMRC. Paying the wrong rates for a year can leave a bill or a refund to sort out later.
How does pension relief work at Scottish rates?
With a relief at source pension, the provider adds 20% to what you pay in. Scottish taxpayers above the basic rate can claim the difference. On £38,000, where the top slice is taxed at 21%, a £1,000 gross contribution earns an extra £10.00. Higher-rate payers claim 22% more, which is real money. See pension tax relief.
How much will I take home in Scotland?
Choose Scotland in the calculator, or type a tax code starting with S. Each salary page, such as £45,000 after tax, also shows the Scottish figures side by side.