Last updated: 14 October 2026
What are the Scottish income tax rates for 2026/27?
If you live in Scotland, you pay Scottish income tax on earnings, pensions, rental profits and trading income. There are six bands: a 19% starter rate, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top rate. The Personal Allowance of £12,570 is the same as in the rest of the UK. Scottish rates don’t apply to savings interest or dividends, which are taxed at UK rates, and National Insurance is the same across the UK.
Scottish bands 2026/27
| Band | Taxable income | Rate |
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
The Personal Allowance is reduced by £1 for every £2 of income over £100,000.
Who is a Scottish taxpayer?
You’re a Scottish taxpayer if your main home is in Scotland. If you have homes in Scotland and elsewhere, it’s where you spend most of the year. Your tax code starts with “S”. Where you work doesn’t matter.
Comparison with England
| Salary | Scottish income tax | England, Wales and NI income tax |
| £25,000 | £2,446 | £2,486 |
| £40,000 | £5,551 | £5,486 |
| £60,000 | £13,182 | £11,432 |
Scottish taxpayers on lower incomes pay slightly less, while those on middle and higher incomes pay more.
Savings and dividends
Savings interest and dividends are taxed at UK rates, but the Scottish band your other income falls in decides which UK rate applies, using UK band limits. Rental profits and pensions are taxed at Scottish rates.
Example
Fiona lives in Glasgow and earns £50,000. Her tax is: starter rate £753.73 (19% of £3,967), basic rate £2,597.80 (20% of £12,989), intermediate rate £2,968.56 (21% of £14,136) and higher rate £2,661.96 (42% of £6,338). Her total Scottish income tax is £8,982.05. An English taxpayer on £50,000 pays £7,486.
Pension tax relief
Pension providers claim 20% relief at source. Scottish intermediate rate taxpayers can claim an extra 1%, and higher, advanced and top rate taxpayers more, through Self Assessment or by contacting HMRC.
Common mistakes
- Not checking your tax code starts with S after moving
- Missing extra pension relief at 21% and above
- Applying Scottish rates to dividends
- Not telling HMRC when you move to or from Scotland
Records to keep
Keep evidence of your main residence, such as council tax bills, especially if you move or have homes in both countries.
Moving to or from Scotland
Your Scottish taxpayer status is decided for the whole tax year, based on where your main home was for most of it. If you move to Edinburgh in August, you’re likely to be a Scottish taxpayer for that entire year. Update your address with HMRC promptly so your employer gets the right tax code. If the code isn’t changed in time, any difference is corrected after the year ends through a P800 or your tax return.
The 2026/27 changes
For 2026/27, the Scottish Government raised the starter and basic rate thresholds and kept the higher, advanced and top rate thresholds frozen, so more people pay the 42% higher rate as their wages rise.
Frequently asked questions
Does Scottish tax apply to my company?
No, corporation tax is UK-wide.
What about capital gains tax?
UK rates and bands apply.
Do students in Scotland pay Scottish rates?
Yes, if their main home is there.
Are Welsh rates different?
Wales currently matches England.
Related: how much tax you owe, higher rate pension relief and bonus on a £95,000 income.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with Scottish taxpayer returns. See our tax refund accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
