Scottish Income Tax Calculator 2025/26
Scotland has its own income tax rates and bands, set by the Scottish Parliament, applying to non-savings, non-dividend income (salary, self-employment, rental income). Scottish taxpayers pay different
Scottish Income Tax Rates 2025/26
| Band | Income range | Scottish rate | rUK rate |
|---|---|---|---|
| Personal allowance | Up to £12,570 | 0% | 0% |
| Starter rate | £12,571–£15,397 | 19% | 20% |
| Basic rate | £15,398–£27,491 | 20% | 20% |
| Intermediate rate | £27,492–£43,662 | 21% | 20% |
| Higher rate | £43,663–£75,000 | 42% | 40% |
| Advanced rate | £75,001–£125,140 | 45% | 40% |
| Top rate | Over £125,140 | 48% | 45% |
Key Differences from rUK
- Scottish taxpayers pay 1% more on income between £27,492 and £43,662 (intermediate rate 21% vs 20%)
- Scottish taxpayers pay 2% more on higher-rate income £43,663–£75,000 (42% vs 40%)
- Scottish taxpayers pay 5% more on income £75,001–£125,140 (45% vs 40%)
- Scottish taxpayers pay 3% more on income above £125,140 (48% vs 45%)
- The 19% starter rate applies only in Scotland (beneficial for lowest earners)
What Scottish Rate Applies To
Scottish rate applies to: employment income, self-employment profits, pension income, rental income. It does NOT apply to: savings interest, dividends (taxed at UK rates regardless of where you live).
Frequently Asked Questions
What are the Scottish income tax rates in 2025/26?
19% starter (£12,571-£15,397), 20% basic (£15,398-£27,491), 21% intermediate (£27,492-£43,662), 42% higher (£43,663-£75,000), 45% advanced (£75,001-£125,140), 48% top rate (over £125,140). The personal allowance (£12,570) is the same as rUK.
Who pays Scottish Income Tax?
You pay Scottish Income Tax if you are a Scottish taxpayer — broadly, if Scotland is where you live for the majority of the tax year. Your tax code will include an 'S' prefix (e.g., S1257L) to indicate you pay Scottish rates. HMRC determines your residence based on where you spend most nights.
Is Scotland's income tax higher than England's?
For most income above £27,491: yes. The intermediate rate (21%) is 1% above the UK basic rate (20%). At higher incomes: Scottish taxpayers pay 42% vs 40% (higher rate), 45% vs 40% (advanced rate), 48% vs 45% (top rate). Lowest earners may pay slightly less (19% starter rate vs 20% basic).
Does the Scottish rate affect National Insurance?
No. NI is a UK-wide policy set by Westminster — Scottish Parliament has no power over NI rates. Scottish taxpayers pay the same NI as English, Welsh, and Northern Irish workers. Only income tax is devolved to Scotland.
Do Scottish rates apply to savings and dividends?
No. Savings interest and dividend income are taxed at UK rates, regardless of where you live in the UK. Scottish rates only apply to non-savings, non-dividend income (earned income, pensions, property income). This means a Scottish higher rate taxpayer still pays 40% on higher-rate dividend income, not 42%.
Is Scottish income tax collected differently?
Scottish income tax is still collected by HMRC via PAYE or Self Assessment — there's no separate Scottish tax return or collection mechanism. The Scottish Government receives the revenues. Your payslip will show your tax code starting with 'S' if you're a Scottish taxpayer.
Are pension contributions treated differently in Scotland?
Tax relief on pension contributions is based on your income tax rate. Scottish taxpayers in the intermediate band (21%) get 21% relief via net pay, but only 20% via relief at source. HMRC pays the extra 1% to relevant pension providers. Higher-band Scottish taxpayers get 42%/45%/48% relief (net pay) or must claim via Self Assessment (relief at source).
What is the top rate of Scottish income tax?
48% — the highest income tax rate in the UK, applying to income above £125,140 in 2025/26. This is 3 percentage points above the UK additional rate (45%). Income above £125,140 also has no personal allowance (already tapered away). Effective marginal rate for a Scottish taxpayer losing personal allowance: can be over 60%.