Glossary · UK
What is Scottish Advanced Rate?
The Scottish Advanced Rate is a 45% income tax band applied to non-savings, non-dividend income between £62,430 and £125,140 for Scottish taxpayers in 2026/27.
Full Definition
The Scottish Advanced Rate is one of Scotland's six income tax bands, set by the Scottish Parliament rather than Westminster. For 2026/27 it charges 45% on non-savings, non-dividend income falling between £62,430 and £125,140. Below it sit the starter, basic (20%), intermediate (21%) and higher (42%) rates; above £125,140 the top rate of 48% applies. The Personal Allowance (£12,570) is reserved across the UK and tapers by £1 for every £2 of adjusted net income over £100,000, reaching zero at £125,140 — so income in the £100,000–£125,140 zone faces an effective marginal rate far above the headline 45%. Scottish rates apply only to earned and pension income; savings interest and dividends remain taxed at UK-wide rates, with dividends at 10.75%/35.75%/39.35%. National Insurance is also reserved, charged at UK thresholds (8% to £50,270, then 2%), which means Scottish higher earners can face combined marginal deductions exceeding their English counterparts. You pay Scottish rates if your sole or main residence is in Scotland, regardless of where you work.