Answers · UK 2025/26

Is National Insurance different in Scotland?

No -- National Insurance is a reserved, UK-wide matter set entirely by the UK Government, so the rates and thresholds are identical in Scotland, England, Wales and Northern Ireland: 8% on earnings between £12,570 and £50,270, and 2% above that, for 2026/27.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

While Scotland has significant devolved power over Income Tax -- setting its own starter, basic, intermediate, higher, advanced and top rate bands, which differ substantially from the rest of the UK -- National Insurance has not been devolved at all. It remains a reserved matter controlled entirely by the UK Government and HMRC, funding the National Insurance Fund that pays for the State Pension and certain contributory benefits UK-wide. For 2026/27, Class 1 employee National Insurance is charged at 8% on earnings between the £12,570 Primary Threshold and the £50,270 Upper Earnings Limit, and 2% on earnings above that, for every employee in Scotland exactly as in England, Wales and Northern Ireland. Self-employed Class 4 National Insurance (6% and 2% on the same thresholds) and Class 2 rules are also identical across all four nations. This creates an interesting quirk: a Scottish taxpayer earning £45,000 pays noticeably more Income Tax than an equivalent earner in England (because of Scotland's intermediate and higher rate bands starting at lower thresholds) but exactly the same National Insurance. This is why take-home pay comparisons between Scotland and the rest of the UK focus entirely on the Income Tax portion of the calculation -- the National Insurance deduction is a constant that does not vary by where in the UK you live or work.