Glossary · UK
What is Scottish Basic Rate?
The 20% Scottish income tax band applying to non-savings, non-dividend income between £3,967 and £16,956 above the Personal Allowance for 2026/27.
Full Definition
The Scottish Basic Rate charges 20% on non-savings, non-dividend income falling between £3,967 and £16,956 above the £12,570 Personal Allowance for Scottish taxpayers in 2026/27 -- broadly gross earnings from about £16,537 to £29,526. It sits directly above the Scottish Starter Rate (19%) and below the Scottish Intermediate Rate (21%), and is numerically identical to the single Basic Rate that applies to the equivalent slice of income UK-wide, even though the Scottish band itself covers a narrower range of income before the Intermediate Rate takes over. Because Scotland has more, narrower bands than the rest of the UK, a Scottish taxpayer reaches a rate above 20% at a lower level of income than someone in England, Wales or Northern Ireland, who continues to pay the single UK Basic Rate of 20% all the way up to the £50,270 higher-rate threshold. The Personal Allowance, its taper above £100,000 of adjusted net income, National Insurance, and the taxation of savings interest and dividends are all set at UK level and apply identically regardless of which country you live in. Scottish taxpayers are identified by an "S" prefix on their tax code.