If you're a Scottish taxpayer (you live in Scotland and it's your main home), your income tax is set by the Scottish Government under devolved powers. In 2026/27, Scotland has six income tax bands — more than any other part of the UK — ranging from the Starter Rate to the Top Rate.
Scottish Income Tax Rates 2026/27
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571–£14,876 | 19% |
| Basic Rate | £14,877–£26,561 | 20% |
| Intermediate Rate | £26,562–£43,662 | 21% |
| Higher Rate | £43,663–£75,000 | 42% |
| Advanced Rate | £75,001–£125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Key Differences from England
- The Higher Rate threshold in Scotland is £43,662 — lower than England's £50,270. Scottish workers earning £45,000–£50,270 pay 42% on that band, versus 20% in England.
- Scotland has an Additional/Advanced Rate of 45% starting at £75,000, versus England's 45% starting at £125,140.
- The Top Rate of 48% is substantially higher than England's 45% Additional Rate.
Are Scottish Workers Better or Worse Off?
It depends on income level. Below £27,000/year, Scottish workers pay marginally more due to the 19% Starter Rate (England has 20% on the same band — counterintuitively, a lower Starter Rate in Scotland means slightly less to pay for those below the Intermediate threshold vs England). Above £43,662, Scottish workers pay significantly more than their English equivalents.
Frequently Asked Questions
How does my employer know I'm a Scottish taxpayer?
HMRC notifies your employer by adding an "S" prefix to your tax code (e.g., S1257L). If you move to or from Scotland, you should inform HMRC so they can update your code.
Are National Insurance contributions different in Scotland?
No. NI is not devolved — it's set and collected by HMRC at UK-wide rates, regardless of where you live.