Tax Year 2025/26

Scotland Income Tax Rates

Scottish taxpayers have different income tax rates and bands compared to the rest of the UK. Understand how much tax you'll pay and compare with English rates.

6 Tax Bands

Scotland has six income tax bands compared to three in England, with rates from 19% to 48%.

48% Top Rate

The Scottish top rate is 48% on income over £125,140, compared to 45% in England.

2.7m Taxpayers

Around 2.7 million people in Scotland are classified as Scottish taxpayers paying SRIT.

Scottish Income Tax Bands 2025/26

The Scottish Parliament sets income tax rates for Scottish taxpayers. These rates only apply to non-savings, non-dividend income such as employment income, self-employment profits, and pensions.

BandRateTaxable IncomeBand Width
Personal Allowance0%Up to £12,570£12,570
Starter Rate19%£12,571 - £14,876£2,305
Basic Rate20%£14,877 - £26,561£11,684
Intermediate Rate21%£26,562 - £43,662£17,100
Higher Rate42%£43,663 - £75,000£31,337
Advanced Rate45%£75,001 - £125,140£50,139
Top Rate48%Over £125,140Unlimited

Personal Allowance Reduction

The £12,570 Personal Allowance reduces by £1 for every £2 earned over £100,000, reaching zero at £125,140. This creates an effective 63% marginal rate for Scottish taxpayers in this range (45% + 18% lost allowance).

Scotland vs England Tax Comparison

Compare Scottish and English income tax rates side by side. Scotland has more bands with a wider range of rates.

Scotland
Starter Rate19%
Basic Rate20%
Intermediate Rate21%
Higher Rate42%
Advanced Rate45%
Top Rate48%
England, Wales & NI
Basic Rate20%
Higher Rate40%
Additional Rate45%
Annual Income Tax Comparison by Salary
Gross SalaryScotland TaxEngland TaxDifference
£25,000£2,486£2,486£0
£30,000£3,536£3,486+£50
£40,000£5,836£5,486+£350
£50,000£9,136£7,486+£1,650
£60,000£13,336£11,432+£1,904
£75,000£17,432+£2,204
£100,000£30,886£27,432+£3,454

* Calculations assume standard tax code with no adjustments. Actual tax may vary based on individual circumstances.

How Scottish Income Tax Works

Who is a Scottish Taxpayer?

You're a Scottish taxpayer if Scotland is your main place of residence. HMRC considers:

  • Where you spend most nights during the tax year
  • Where your close family (spouse/children) live
  • Where you're registered with a GP, bank, or electoral roll
  • The location of your main home if you own multiple properties

What Income is Taxed at Scottish Rates?

Scottish rates only apply to:

  • Employment income (salary, wages, bonuses)
  • Self-employment profits
  • Pension income
  • Rental income from property

Not taxed at Scottish rates: Savings interest, dividends, and capital gains - these are taxed at UK-wide rates.

Scottish Tax Code

If you're a Scottish taxpayer, your tax code will start with the letter "S". For example:

S1257LS1185LSBR

If your tax code doesn't start with "S" but you believe you're a Scottish taxpayer, contact HMRC to update your records.

Calculate Your Scottish Take-Home Pay

Use our salary calculator to see exactly how much you'll take home after Scottish income tax, National Insurance, and other deductions.

Try the Calculator

Frequently Asked Questions

Related Resources

Last updated: December 2025 | Tax year 2025/26 rates | Source: HMRC