Scotland has its own income tax rates and bands, set by the Scottish Parliament. If your main residence is in Scotland, you pay Scottish income tax rather than the UK rates that apply in England, Wales, and Northern Ireland. This guide explains the Scottish rates for 2026/27 and how they compare to the rest of the UK.
Scottish income tax bands 2026/27
Scotland has seven income tax bands for 2026/27, compared to four in the rest of the UK. The Scottish rates are generally higher for middle and higher earners, but lower at the very bottom of the taxable income range.
| Band | Taxable Income | Scottish Rate | rUK Rate |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | 0% |
| Starter Rate | £12,571–£16,537 | 19% | 20% |
| Basic Rate | £16,538–£29,526 | 20% | 20% |
| Intermediate Rate | £29,527–£43,662 | 21% | 20% |
| Higher Rate | £43,663–£75,000 | 42% | 40% |
| Advanced Rate | £75,001–£125,140 | 45% | 40% |
| Top Rate | Over £125,140 | 48% | 45% |
Who pays Scottish income tax?
You pay Scottish income tax if your main place of residence is in Scotland for most of the tax year. This applies to PAYE employees and self-employed people alike. If you live in Scotland but work in England, you still pay Scottish rates on your income. Your tax code will begin with an “S” to indicate Scottish status (e.g. S1257L).
What is not devolved?
National Insurance contributions are a UK-wide tax and are not affected by Scottish income tax rates. Scottish residents pay exactly the same NI as English, Welsh, or Northern Irish residents. Savings interest and dividend tax are also UK-wide and are not devolved.
The Scottish £100K trap
The Personal Allowance taper above £100,000 applies across the whole UK, including Scotland. However, because the Scottish Higher Rate is 42% (not 40%), the effective marginal rate in the £100,000–£125,140 range is approximately 63% in Scotland, compared to 60% in the rest of the UK. Adding NI brings it even higher. Salary sacrifice is the most effective mitigation strategy — see the £100K tax trap guide.
Calculating your Scottish take-home pay
Our income tax calculator supports Scottish tax rates. Simply toggle the “Scottish taxpayer” switch on the calculator to apply the correct bands to your salary. You can also read the UK income tax bands guide for a comparison of how the rUK and Scottish systems work.