Scotland vs Rest of UK Income Tax 2026/27
Scotland sets its own Income Tax bands. For the 2026/27 tax year (6 April 2026 to 5 April 2027), Scottish taxpayers pay at six rates from 19% to 48% on wages, pensions and most other taxable income, while England, Wales and Northern Ireland use three rates: 20%, 40% and 45%. The Personal Allowance is the same £12,570 everywhere, and so is National Insurance.
The short answer
- Scotland: six bands, from the 19% starter rate to the 48% top rate.
- England, Wales and Northern Ireland: three bands, 20%, 40% and 45%.
- Lower up to about £33,500: Scottish tax is slightly lower at modest incomes, by up to about £40 a year.
- Higher above that: the 42% rate starts at £43,663, against £50,271 for the 40% rate elsewhere in the UK.
- Your main home decides it, not where your employer is. Scottish taxpayers have a tax code starting with S.
The bands side by side
| Scottish band | Income (standard allowance) | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
| England, Wales and Northern Ireland | Income (standard allowance) | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Scottish table follows mygov.scot and the Scottish Budget 2026 to 2027; the second follows GOV.UK. Both assume the standard Personal Allowance. Payroll rules list the same Scottish bands as taxable income above the allowance: 19% on the first £3,967, 20% up to £16,956, 21% up to £31,092, 42% up to £62,430, 45% up to £125,140 and 48% above that.
Who pays Scottish rates
GOV.UK says you pay Scottish Income Tax if you live in Scotland. HMRC decides this from where your main home is, so the location of your employer does not change it. If you are a Scottish taxpayer, your tax code starts with an S, for example S1257L, and your employer or pension provider applies the Scottish bands.
If you move to or from Scotland, what counts is where you lived for most of the tax year (6 April to 5 April), and that sets the rates for the whole year. Tell HMRC your new address when you move. See GOV.UK: Income Tax in Scotland and MoneyHelper for the exact test, including for people with two homes.
What changed in Scotland for 2026/27
No Scottish rates changed. The starter rate band now ends at £16,537, up from £15,397, and the basic rate band ends at £29,526, up from £27,491. Both limits rose by 7.4%, which is more than inflation, so more income is taxed at 19% and 20% instead of 20% and 21%. The higher, advanced and top rate thresholds stayed at £43,662, £75,000 and £125,140.
Income Tax on common incomes: Scotland and the rest of the UK
| Income | Scotland | Rest of UK | Scotland pays |
|---|---|---|---|
| £20,000 | £1,446 | £1,486 | £40 less |
| £30,000 | £3,451 | £3,486 | £35 less |
| £40,000 | £5,551 | £5,486 | £65 more |
| £50,270 | £9,095 | £7,540 | £1,555 more |
| £60,000 | £13,182 | £11,432 | £1,750 more |
| £80,000 | £21,732 | £19,432 | £2,300 more |
| £100,000 | £30,732 | £27,432 | £3,300 more |
| £150,000 | £59,634 | £53,703 | £5,931 more |
Income Tax only, per year. The figures assume all income is from employment, the standard tax code (1257L, or S1257L in Scotland), and no pension contributions, benefits in kind or other income. National Insurance and student loan repayments are not included. They are an estimate, not a payslip.
Who pays less and who pays more
The Scottish starter rate taxes the first £3,967 of taxable income at 19% instead of 20%, which saves £39.67 a year. The 20% basic rate then matches the rest of the UK, so that saving holds from £16,537 to £29,526. After that, the 21% intermediate rate is a point higher than the 20% charged elsewhere, and the saving shrinks until it disappears at about £33,500. Above that, Scottish taxpayers pay more.
Example, £40,000 a year in Scotland. Taxable income is £27,430. The first £3,967 at 19% is £753.73. The next £12,989 at 20% is £2,597.80. The remaining £10,474 at 21% is £2,199.54. Scottish Income Tax is £5,551.07. In the rest of the UK, the same income pays £5,486, so £65 less.
The gap widens at £43,663, where Scotland moves to 42% while the rest of the UK stays at 20% until £50,271. Someone on £50,270 pays £9,095 in Scotland and £7,540 elsewhere, which is £1,555 more. At £100,000 the difference is £3,300.
The £100,000 allowance trap is steeper in Scotland
Between £100,000 and £125,140, your Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000. The extra tax on the lost allowance comes on top of the normal rate, so the effective rate is higher than the band rate. In England, Wales and Northern Ireland that is about 60%. The Scottish Government puts the marginal rate in Scotland at 67.5% on earnings between £100,000 and £125,140, because the 45% advanced rate applies to both the extra income and the lost allowance.
Going from £100,000 to £110,000 raises Scottish Income Tax from £30,732 to £37,482, which is £6,750 of tax on £10,000 of extra income. In the rest of the UK, the rise is £6,000.
What is the same across the UK
- Personal Allowance: £12,570 for everyone, tapered above £100,000. The Scottish Government confirms the allowance is reserved to the UK Parliament.
- National Insurance: the same rates and thresholds in every part of the UK. See our UK National Insurance guide.
- Savings interest and dividends: taxed at the UK-wide rates, even for Scottish taxpayers.
For the three-band system in the rest of the UK, including worked examples, see our UK Income Tax bands guide.
Scottish Income Tax questions answered
What are the Scottish Income Tax rates for 2026/27?
There are six: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top. With the standard £12,570 Personal Allowance they apply to income of £12,571 to £16,537, £16,538 to £29,526, £29,527 to £43,662, £43,663 to £75,000, £75,001 to £125,140 and over £125,140.
Do I pay less tax in Scotland than in England?
It depends on your income. On the standard allowance and employment income only, Scottish Income Tax is lower below roughly £33,500 a year, by up to about £40. Above that it is higher, and the gap grows quickly once the 42% band starts at £43,663.
At what income do I pay the higher rate in Scotland?
The 42% Scottish higher rate starts at £43,663 with the standard allowance. In England, Wales and Northern Ireland the 40% higher rate starts at £50,271, so it begins £6,608 later.
Who pays Scottish Income Tax?
GOV.UK says you pay it if you live in Scotland. HMRC goes by where your main home is, not where your employer is based. If you are a Scottish taxpayer, your tax code starts with an S, for example S1257L. If you move to or from Scotland, tell HMRC your new address.
Is National Insurance different in Scotland?
No. National Insurance rates and thresholds are the same across the UK. Only the Income Tax bands differ, so your National Insurance does not change if you live in Scotland.
Do Scottish rates apply to savings and dividends?
No. GOV.UK says Scottish Income Tax applies to your wages, pension and most other taxable income, but you pay the same tax as the rest of the UK on dividends and savings interest.
Have the Scottish bands changed for 2026/27?
Yes, in part. The starter and basic rate limits rose by 7.4%, from £15,397 to £16,537 and from £27,491 to £29,526. No rates changed, and the higher, advanced and top rate thresholds stayed at £43,662, £75,000 and £125,140.
Sources
- mygov.scot: Current Scottish Income Tax ratesThe 2026/27 Scottish rates and bands, with the 2025/26 bands used for the comparison.
- Scottish Budget 2026 to 2027: Tax PolicyScottish Government policy table, the 7.4% rise to the starter and basic limits, and no new bands or rate increases.
- Scottish tax ready reckoners: Income TaxThe 67.5% marginal rate between £100,000 and £125,140, and which parts of Income Tax stay reserved to the UK Parliament.
- GOV.UK: Income Tax in ScotlandWho pays Scottish Income Tax, what it applies to, S tax codes and moving to or from Scotland.
- GOV.UK: Income Tax rates and Personal AllowancesThe rest-of-UK rates and bands, the £12,570 allowance and the £100,000 reduction.
- GOV.UK: Rates and thresholds for employers 2026 to 2027The Scottish bands expressed as taxable income above the Personal Allowance, as used for payroll.
- MoneyHelper: Scottish Income Tax and National InsuranceHow HMRC decides whether you are a Scottish taxpayer, based on your main home.
Good to know
This guide is general information, not tax or financial advice. What you actually pay depends on your tax code, other income, pension contributions and where your main home is. The comparison figures are our own calculations using the official bands above. Rates were last checked against GOV.UK and mygov.scot on 2 October 2026. To see your own position, use HMRC's Check your Income Tax service or ask a qualified adviser.