Last updated: May 2026 · 2026/27 Scottish Income Tax rates
What's different about a Scottish payslip?
The most visible difference is your tax code. If you're a Scottish taxpayer, your tax code will have an “S” prefix — for example, S1257Linstead of 1257L. This tells your employer's payroll system to use Scottish Income Tax rates.
Beyond the tax code, a Scottish payslip looks identical to a standard UK payslip. The PAYE income tax line will show a deduction that differs from what an English colleague on the same salary would see — but there's no separate “Scottish tax” label. Your payslip will typically just say “Income Tax” or “PAYE”.
Line by line: Scottish payslip vs English payslip
- Gross Pay: Identical — your gross salary before any deductions.
- Tax Code: S prefix (e.g., S1257L vs 1257L). This is the key indicator.
- Income Tax / PAYE: Different amount — calculated using Scottish bands (6 bands, up to 48%) vs English bands (3 bands, up to 45%).
- National Insurance: Identical — NI is UK-wide and unaffected by Scottish tax rates.
- Student Loan: Identical — student loan repayment thresholds are UK-wide.
- Pension: Identical calculation method — though the tax saving from pension contributions is slightly different due to different marginal rates.
- Net Pay: Lower for salaries above ~£27,500 compared to an equivalent English payslip.
How to check if you're being taxed at Scottish rates
Look at your payslip tax code. If it starts with S (e.g., S1257L, SBR, SD0), you are being taxed at Scottish rates. If it doesn't have an S prefix but you live in Scotland, contact HMRC to update your address — you may be paying the wrong rate.
You can check and update your tax code at gov.uk/personal-tax-account.
What if I recently moved to or from Scotland?
Your tax residency is determined by your main place of residence. If you move to Scotland mid-year, you will typically stay on your existing (English) rates until HMRC updates your address and issues a new S-prefix code to your employer. This can take 1–3 pay periods. There is generally no retrospective adjustment for the period you were on the wrong rate — any difference is corrected through the cumulative PAYE calculation.