Glossary · UK
What is Scottish Intermediate Rate?
The Scottish Intermediate Rate is a 21% income tax band applied to non-savings, non-dividend income by Scottish taxpayers between the basic and higher rate bands.
Full Definition
The Scottish Intermediate Rate is one of the income tax bands set by the Scottish Parliament for the 2026/27 tax year, charging 21% on non-savings, non-dividend income (such as salary, pensions and rental profit) that falls within its threshold. It sits between the starter and basic rates below it and the higher rate (42%) above, which applies from £31,092 to £62,430 of taxable income. These bands apply only to people whose main home is in Scotland and who are designated Scottish taxpayers by HMRC; income is still assessed UK-wide, with the standard Personal Allowance of £12,570 (tapered away once income exceeds £100,000). The intermediate rate is a distinctive feature of Scotland's more graduated system, which also includes the advanced rate (45%, £62,430–£125,140) and top rate (48%). Savings and dividend income are not devolved, so a Scottish taxpayer still pays UK dividend rates (10.75%/35.75%/39.35%) and the UK savings rate bands. National Insurance is also UK-wide and unaffected. Wales sets its own rates (WRIT) but currently mirrors England's, and Northern Ireland follows the UK rates entirely.