Guide · tax year 2026/27
Scottish income tax explained
Scotland's income tax bands, who pays them, and how they compare with the rest of the UK.
Scotland sets its own income tax rates and bands for wages, pensions and most other income. If your main home is in Scotland, you pay Scottish income tax. This guide explains who pays it, the bands for 2026/27, and how it compares with the rest of the UK.
Who pays Scottish income tax
You pay Scottish income tax if you live in Scotland (GOV.UK: Scottish Income Tax). If you have a home in Scotland and another elsewhere in the UK, it depends on which is your main home, which is usually where you live and spend most of your time (GOV.UK: if you live in more than one home). Your tax code starts with an S if you pay Scottish income tax.
Scottish bands for 2026/27
Scotland has 6 bands. The limits below are amounts of taxable income, after your Personal Allowance (GOV.UK: rates and thresholds for employers):
| Band | Taxable income | Rate |
|---|---|---|
| Starter | Up to £3,967 | 19% |
| Basic | Up to £16,956 | 20% |
| Intermediate | Up to £31,092 | 21% |
| Higher | Up to £62,430 | 42% |
| Advanced | Up to £125,140 | 45% |
| Top | Over £125,140 | 48% |
GOV.UK's main page shows the same bands as ranges of total income. Those ranges assume you get the full Personal Allowance of £12,570, so they do not hold once your allowance starts to shrink above £100,000.
What stays the same
- The Personal Allowance and its taper above £100,000 work the same way: GOV.UK's Scottish Income Tax page says you do not get a Personal Allowance once your income is high enough, linking to the same taper rules (GOV.UK: income over the limit).
- National Insurance is the same across the UK. See how National Insurance works.
- Dividends and savings interest: Scottish taxpayers pay the same tax as the rest of the UK on these (GOV.UK). See how dividend tax works.
How it compares
Whether you pay more or less than in the rest of the UK depends on your income. The lower starter rate helps on low incomes, while the intermediate and higher Scottish rates mean more tax further up.
| Salary | Scotland | Rest of the UK | Difference |
|---|---|---|---|
| £25,000 | £2,446.33 | £2,486.00 | −£39.67 |
| £50,000 | £8,982.05 | £7,486.00 | £1,496.05 |
| £80,000 | £21,732.05 | £19,432.00 | £2,300.05 |
A minus figure means less tax in Scotland.
A worked example
On £50,000, a Scottish taxpayer has £37,430 of taxable income after the Personal Allowance. It is taxed band by band:
- £3,967 at the starter rate of 19%
- £12,989 at the basic rate of 20%
- £14,136 at the intermediate rate of 21%
- £6,338 at the higher rate of 42%
The total is £8,982.05.
When the rates are set
Scottish rates and bands are set by the Scottish Parliament, which sets the basic rate limit and higher rate threshold for Scottish taxpayers' non-savings, non-dividend income (GOV.UK). So they can change separately from the rest of the UK.
Take-home pay compared
Income tax is only part of the picture. Here is take-home pay after income tax and National Insurance at more salaries:
| Salary | Scotland | Rest of the UK | Difference a month |
|---|---|---|---|
| £20,000 | £17,959.27 | £17,919.60 | £3.31 |
| £35,000 | £28,704.53 | £28,719.60 | −£1.26 |
| £65,000 | £46,407.35 | £48,257.40 | −£154.17 |
| £120,000 | £71,357.35 | £76,157.40 | −£400.00 |
A minus figure means less take-home pay in Scotland. On lower incomes the difference is small, because the lower starter rate reduces the tax on the first slice of taxable income. The gap grows on higher incomes, where Scottish rates are higher across more of the income.
Student loans in Scotland
Loans from the Student Awards Agency Scotland are Plan 4, which has its own threshold of £33,795. See student loan plans explained.
A lower-income example
On £25,000, a Scottish taxpayer has £12,430 of taxable income. It is taxed like this:
- £3,967 at the starter rate of 19%
- £8,463 at the basic rate of 20%
The total is £2,446.33. The starter band at the bottom is taxed at less than the basic rate elsewhere in the UK, which is why Scottish taxpayers on lower incomes can pay slightly less income tax than people on the same pay in the rest of the UK.
Pensions and bonuses
Scottish rates apply to pension income too: a tax code starting with S means "your income or pension is taxed using the rates in Scotland" (GOV.UK). A bonus is earnings, so it is taxed at the same rates as your salary. See how bonuses are taxed.
Moving to or from Scotland
Whether you pay Scottish income tax depends on where your main home is, so a move can change it. If you move, check that your tax code changes to match: an S code if you now live in Scotland, or a code without the S if you have moved elsewhere in the UK. Our guide What is a tax code? explains the letters.
Common questions
I work in England but live in Scotland. Which do I pay?
It depends on where you live, not where you work: if your main home is in Scotland, you pay Scottish income tax.
Where can I work out my own figure?
Choose Scotland in the salary calculator.
General information for the 2026/27 tax year, not financial or tax advice. We are not HMRC. Found a mistake? See our corrections policy.