Scottish Income Tax Bands and Rates 2026/27
Updated 17 April 2026. Source: Scottish Government Budget 2026/27.
2026/27 Scottish income tax bands at a glance
| Band name | Taxable income | Approximate gross salary | Rate | Change from 2025/26 |
|---|---|---|---|---|
| Personal allowance | £0 | Up to £12,570 | 0% | Unchanged |
| Starter rate | £0 to £3,967 | £12,571 to £16,537 | 19% | Unchanged |
| Basic rate | £3,967 to £16,956 | £16,538 to £29,526 | 20% | Unchanged |
| Intermediate rate | £16,956 to £31,092 | £29,527 to £43,662 | 21% | Unchanged |
| Higher rate | £31,092 to £62,430 | £43,663 to £75,000 | 42% | Unchanged |
| Advanced rate | £62,430 to £112,570 | £75,001 to £125,140 | 45% | Unchanged |
| Top rate | Over £112,570 | Over £125,140 | 48% | Up from 47% |
Source: mygov.scot/scottish-income-tax and Scottish Budget 2026/27. Verified 17 April 2026.
Each band explained
Starter rate (19%)
Taxable income £0 to £3,967 (gross £12,571 to £16,537)
The Scottish starter rate of 19% applies to the first £3,967 of taxable income (i.e., income above the personal allowance of £12,570). This band was introduced by the Scottish Parliament to give those on lower incomes a slightly lower rate than the rest-of-UK basic rate of 20%. A person earning £15,000 gross pays 19% on £2,430 of taxable income (£15,000 minus £12,570), resulting in £462 of income tax from this band. At £16,537 gross, the full starter band is used and income tax within this band is £753.
Basic rate (20%)
Taxable income £3,967 to £16,956 (gross £16,538 to £29,526)
The Scottish basic rate of 20% matches the rest-of-UK basic rate and applies to taxable income between £3,967 and £16,956. A person earning exactly £29,526 gross pays 19% on £3,967 (£753) and 20% on £12,989 (£2,598), for a total income tax of £3,351 at the top of this band. At incomes in this range, Scottish taxpayers pay broadly the same income tax as their English counterparts, because the slight saving in the starter band is offset by the crossover to 20%.
Intermediate rate (21%)
Taxable income £16,956 to £31,092 (gross £29,527 to £43,662)
The 21% intermediate rate applies to taxable income between £16,956 and £31,092. This is where Scottish taxpayers begin to pay more income tax than equivalent earners in England: the rest-of-UK basic rate stops at 20% up to £37,700 of taxable income (£50,270 gross). A Scottish taxpayer earning £40,000 gross pays 21% on earnings in this band, while an English taxpayer on the same income pays 20%. The difference at £40,000 gross is around £100 more income tax for the Scottish taxpayer.
Higher rate (42%)
Taxable income £31,092 to £62,430 (gross £43,663 to £75,000)
The Scottish higher rate is 42%, compared to 40% in the rest of the UK. This applies from £43,663 gross to £75,000 gross. The gap between Scottish and rest-of-UK tax is most visible here: a Scottish taxpayer earning £60,000 pays 42% on income in this band, while an English taxpayer on £60,000 pays 40% on the same pounds. At £60,000 gross, the difference is approximately £1,400 more in income tax for the Scottish taxpayer.
Advanced rate (45%)
Taxable income £62,430 to £112,570 (gross £75,001 to £125,140)
The advanced rate of 45% was introduced in the 2024/25 Scottish Budget. It applies to taxable income between £62,430 and £112,570. In the rest of the UK, the higher rate of 40% continues to apply throughout this range (up to where personal allowance tapering begins). A Scottish taxpayer earning £100,000 pays 45% on income in this band; an English taxpayer pays 40%. The total income tax gap at £100,000 gross is approximately £5,400 in favour of the English taxpayer.
Top rate (48%)
Taxable income over £112,570 (gross over £125,140)
The Scottish top rate was increased from 47% to 48% in the 2026/27 Scottish Budget. It applies to taxable income above £112,570 (gross income above £125,140). Note that at £125,140 gross, the personal allowance is fully withdrawn, which is why the band starts at £112,570 of taxable income (the gross minus what remains of the personal allowance at that income level, which by then is £0). In the rest of the UK, the additional rate is 45% on income above £125,140 gross.
How Scottish income tax rates are set
Under the Scotland Act 2016, the Scottish Parliament has the power to set its own income tax rates and thresholds for Scottish taxpayers. This does not extend to the personal allowance, which is set by Westminster and applies equally across the UK, or to National Insurance, which is a reserved matter.
Each year, the Scottish Government publishes a Scottish Budget (usually in December or January for the following April tax year) setting out any changes to Scottish income tax rates and thresholds. These changes require approval from the Scottish Parliament and, once passed, take effect from 6 April of that tax year.
The revenue from Scottish income tax goes directly to the Scottish Government, which uses it to fund devolved public services including the NHS in Scotland, education, housing, and social care. In exchange, Scotland's block grant from Westminster is reduced by an equivalent amount.