Scottish Income Tax Rates 2025/26

Complete reference for Scottish income tax rates 2025/26 — 6 bands from 19% Starter to 48% Top rate. Thresholds, example

Quick answer: Scottish income tax 2025/26 has 6 bands: Starter 19% (£12,571-£14,876), Basic 20% (-£26,561), Intermediate 21% (-£43,662), Higher 42% (-£75,000), Advanced 45% (-£125,140), Top 48% (£125,141+).
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

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This is the definitive 2025/26 reference for Scottish income tax bands and rates set by the Scottish Government. Use it to verify payslips, plan salary sacrifice or compare cross-border take-home.

How scottish income tax rates 2025/26 works in 2025/26

Income tax bands in Scotland for 2025/26 (after the £12,570 UK personal allowance is applied):

BandRange (taxable)Rate
Starter£12,571 – £14,87619%
Basic£14,877 – £26,56120%
Intermediate£26,562 – £43,66221%
Higher£43,663 – £75,00042%
Advanced£75,001 – £125,14045%
Top£125,141+48%

Personal Allowance (£12,570) is UK-wide and tapers by £1 for every £2 earned above £100,000 — fully removed at £125,140.

Effective marginal rate trap: between £100,000 and £125,140, every £100 of pay loses £50 of allowance. With Scottish 45% rate that creates a 67.5% marginal income tax rate (45% on the £100 + 45% on the £50 lost allowance).

Worked example: £20,000 Starter + Basic only

£2,306 × 19% (£438.14) + £5,124 × 20% (£1,024.80) = £1,462.94 tax. NI £594.40. Take-home £17,942.66.

Gross: £20,000 → Take-home: £17,942.66/year (£1,495.22/month)

Worked example: £43,663 Higher rate threshold

Hits Higher rate at exactly £43,663. Tax £6,011.30 (Starter+Basic+Intermediate). NI £2,481.04.

Gross: £43,663 → Take-home: £35,170.66/year (£2,930.89/month)

Worked example: £125,140 Top rate threshold

PA fully tapered. Effective rate ~38%. Tax £45,153 + NI £4,512.40. Take-home £75,475.

Gross: £125,140 → Take-home: £75,474.60/year (£6,289.55/month)

Frequently asked questions

What is the Scottish Starter rate?
The Starter rate is 19%, applying to the first £2,306 of taxable income (£12,571–£14,876). It saves Scottish taxpayers £23 vs the rest of UK on this slice.
Why is the Scottish Higher rate 42% not 40%?
The Scottish Government raised the Higher rate from 41% to 42% in April 2023 to fund public services. The Advanced rate (45%) was added in April 2024, and the Top rate increased from 47% to 48%.
At what salary do Scottish residents pay more than English?
Crossover is around £29,000. Below this, Scotland pays slightly less due to the 19% Starter rate. Above £43,662, Scottish residents pay considerably more due to the 42% Higher rate vs England's 40%.
How are dividends taxed in Scotland?
Dividends use UK-wide rates regardless of residence: 8.75% basic, 33.75% higher, 39.35% additional. The £500 dividend allowance applies. Only earned income follows Scottish bands.
Do Scottish bands apply to pension contributions tax relief?
Tax relief is given at your marginal Scottish rate. A £100 net pension contribution costs only £58 to a Higher rate (42%) Scottish taxpayer (using relief-at-source claimed via self-assessment).
Where can I check my Scottish tax code?
Sign into your Personal Tax Account at gov.uk/personal-tax-account. Codes start with S (e.g. S1257L). If wrong, use the same site to update your address.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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