Glossary · UK
What is Scottish Top Rate?
The Scottish Top Rate is a 48% income tax band applied to non-savings, non-dividend income above £125,140 for Scottish taxpayers in 2026/27.
Full Definition
The Scottish Top Rate is the highest band of Scottish Income Tax, charged at 48% on non-savings, non-dividend income above £125,140 in 2026/27. It applies to people whose main residence is in Scotland, as Income Tax on earned income is devolved to the Scottish Parliament. It sits above the advanced rate of 45% (£62,430 to £125,140) and the higher rate of 42% (£31,092 to £62,430), with an intermediate rate of 21% and a starter rate of 19% below the basic 20% band. As with the rest of the UK, the Personal Allowance of £12,570 tapers away by £1 for every £2 of income over £100,000, disappearing entirely at £125,140 — so the full Top Rate band begins where the allowance ends. The Top Rate is 3 percentage points higher than England, Wales and Northern Ireland's additional rate of 45%, meaning high earners in Scotland pay more on their salary. Note that the Top Rate covers only earnings; savings interest and dividends are taxed at UK-wide rates regardless of where you live. The savings allowance is also £0 for those whose taxable income reaches additional/top-rate levels.