How much is the Scottish top rate of income tax above £125,140 in 2026/27?

Full answer

For Scottish taxpayers in 2026/27, the top rate of income tax is 48%, charged on taxable income above £125,140. Scotland sets its own income tax rates and bands on non-savings, non-dividend income (such as salary, pensions and rental profit), so this differs from the rest of the UK. Above £125,140, taxpayers elsewhere in the UK (England, Wales and Northern Ireland) pay the additional rate of 45%, meaning a high-earning Scot pays 3 percentage points more on income in this band. Scotland has six bands in 2026/27: a 19% starter rate, 20% basic rate, 21% intermediate rate, 42% higher rate (£31,092 to £62,430), 45% advanced rate (£62,430 to £125,140), and the 48% top rate above £125,140. The £12,570 Personal Allowance is set UK-wide, not by Holyrood, and it tapers by £1 for every £2 of adjusted net income over £100,000, reaching zero at £125,140. So once income exceeds £125,140, there is no allowance left and every additional pound falls into the 48% band. Worked example: a Scottish employee earning £160,000 pays 48% on the slice above £125,140, that is £34,860 taxed at 48% = £16,732.80 from this band alone, on top of the tax due on the lower bands. The effective marginal rate between £100,000 and £125,140 is even harsher because the withdrawal of the Personal Allowance combines with the 45% advanced rate to produce around a 67.5% marginal rate on that slice. Note that savings and dividend income are taxed using UK-wide rates and bands, not Scottish ones, even for Scottish taxpayers. National Insurance is also UK-wide.

Try the calculator