Scottish Income Tax 2026/27: All Six Bands and Rates Explained
Scotland has its own Income Tax rates and bands, set by the Scottish Parliament. In 2026/27 there are six bands ranging from 19% to 48%. This guide explains each band, who pays Scottish Income Tax, and how it compares to the rest of the UK.
What Makes Scottish Income Tax Different?
Since 2017, the Scottish Parliament has had full control over Income Tax rates and bands for Scottish taxpayers. This means residents of Scotland follow a separate set of thresholds and rates from those applied in England, Wales, and Northern Ireland.
The Scottish system uses six bands rather than three, allowing for more gradual progression. The Personal Allowance of GBP 12,570 still applies as a UK-wide figure, so no Scottish Income Tax is due on the first GBP 12,570 of income.
The Six Scottish Income Tax Bands for 2026/27
| Band | Rate | Income Range |
|---|---|---|
| Starter | 19% | GBP 12,571 to GBP 15,397 |
| Basic | 20% | GBP 15,398 to GBP 27,491 |
| Intermediate | 21% | GBP 27,492 to GBP 43,662 |
| Higher | 42% | GBP 43,663 to GBP 75,000 |
| Advanced | 45% | GBP 75,001 to GBP 125,140 |
| Top | 48% | Above GBP 125,140 |
The Starter band provides a very small saving over rUK rates for low earners -- a Scottish taxpayer earning GBP 15,397 pays 19% on the band between GBP 12,571 and GBP 15,397 rather than 20%. However, from the Intermediate band upwards, Scottish taxpayers pay more than equivalent earners in England or Wales.
How Scottish Rates Compare to rUK Rates
A taxpayer earning GBP 50,000 in England pays 20% Basic rate on income up to GBP 50,270, then 40% Higher rate above that. In Scotland, the same earner pays 19% Starter, 20% Basic, 21% Intermediate, and 42% Higher on the band above GBP 43,662.
This results in a meaningfully higher tax bill for Scottish higher earners. At GBP 60,000, a Scottish taxpayer pays roughly GBP 1,500 to GBP 2,000 more in Income Tax annually than an equivalent earner in England, depending on the precise income breakdown.
The Personal Allowance Taper
Scottish taxpayers are subject to the same Personal Allowance taper as the rest of the UK. For every GBP 2 of income above GBP 100,000, GBP 1 of the GBP 12,570 Personal Allowance is removed. The allowance is fully withdrawn at GBP 125,140.
Combined with the Intermediate rate of 21%, this creates an effective marginal rate of approximately 63% on income between GBP 100,000 and GBP 125,140 for Scottish taxpayers -- higher than the 60% effective rate seen in England during the same income range.
What Scottish Income Tax Does Not Cover
Scottish Income Tax applies only to non-savings, non-dividend income. Savings interest and dividend income continue to use UK-wide rates:
- Savings Starter Rate Band: 0% up to GBP 5,000 (if total income is low enough)
- Savings Basic, Higher, and Additional rates: 20%, 40%, 45% at the usual UK thresholds
- Dividend Allowance: GBP 500, then 8.75% / 33.75% / 39.35% at the respective bands
National Insurance is also set and collected at a UK-wide level. Scottish Income Tax rates have no bearing on NI contributions.
Frequently asked questions
Related reading
Scottish Taxpayers: Reclaiming the Extra Pension Tax Relief in 2026/27
Scottish income tax has six bands, so pension relief above 20% often has to be reclaimed from HMRC. Here is how Scottish taxpayers in the 21%, 42%, 45% and 48% bands can claim the difference for 2026/27.
Moving from England to Scotland in 2026/27: The Tax Impact on Your Salary
Moving to Scotland in 2026/27? See exactly how Scottish income tax bands change your take-home pay versus England, plus what stays UK-wide.
Scotland's Income Tax Bands 2026/27: The Six-Band System Explained
Scotland's six income tax bands for 2026/27 explained, from the 19% starter rate to the 48% top rate, with thresholds, examples and how Scottish tax differs.