What is the Scottish Income Tax Starter Rate for 2026/27?

Full answer

Scottish Income Tax is set separately from the rest of the UK and has more bands than the standard UK system. For 2026/27, Scotland uses six income tax bands. The Starter Rate of 19% applies to taxable income between GBP 12,571 and GBP 15,397 -- that is, income just above the Personal Allowance of GBP 12,570. This band covers the first GBP 2,827 of taxable income. Above the Starter Rate, the bands are as follows: - Basic Rate: 20% on income from GBP 15,398 to GBP 27,491 - Intermediate Rate: 21% on income from GBP 27,492 to GBP 43,662 - Higher Rate: 42% on income from GBP 43,663 to GBP 75,000 - Advanced Rate: 45% on income from GBP 75,001 to GBP 125,140 - Top Rate: 48% on income above GBP 125,140 The Personal Allowance of GBP 12,570 remains the same for Scottish taxpayers as for the rest of the UK. It tapers away for incomes above GBP 100,000 and disappears entirely at GBP 125,140, creating an effective 60% marginal tax rate in the taper zone (Scottish taxpayers face an even higher effective rate due to the 42% and 45% higher bands interacting with the lost Personal Allowance). Scottish taxpayers are defined as those whose main residence is in Scotland. Scottish income tax applies to non-savings, non-dividend income only -- savings income and dividend income are still taxed at UK-wide rates. For someone earning GBP 20,000 in Scotland, the tax calculation would use the Starter Rate for the first GBP 2,827 of taxable income, then the Basic Rate for the remainder up to GBP 27,491. This makes the effective rate of tax slightly higher in Scotland than in England, Wales, or Northern Ireland for comparable incomes above the Starter Rate threshold.

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