Scottish Income Tax Bands 2026/27: All Six Rates Explained

Scotland has six income tax bands for 2026/27. After the £12,570 personal allowance, Scottish taxpayers pay 19% on income up to £16,537, 20% up to £29,526, 21% up to £43,662, 42% up to £75,000, 45% up to £125,140, and 48% above £125,140. These rates differ from the rest of the UK.

The six Scottish income tax bands at a glance

• Starter rate: 19% on taxable income from £12,571 to £16,537.

• Basic rate: 20% on taxable income from £16,538 to £29,526.

• Intermediate rate: 21% on taxable income from £29,527 to £43,662.

• Higher rate: 42% on taxable income from £43,663 to £75,000.

• Advanced rate: 45% on taxable income from £75,001 to £125,140.

• Top rate: 48% on taxable income above £125,140.

How Scottish rates differ from the rest of the UK

England, Wales, and Northern Ireland use three bands — 20%, 40%, and 45%. Scotland's six-band structure means that someone earning between £43,662 and £50,270 pays 42% in Scotland but only 20% in England. Above £50,270 an English taxpayer pays 40% while a Scottish taxpayer earning between £50,271 and £75,000 still pays 42%, then moves to 45%.

Who decides which rates apply to you?

Your main place of residence on 6 April determines whether you are a Scottish taxpayer for that whole tax year. If you live in Scotland for the majority of the year, HMRC will issue you a Scottish tax code beginning with S — for example S1257L. If you receive employment income, PAYE will deduct tax at Scottish rates automatically once that code is issued.

Scottish rates and the personal allowance

The personal allowance of £12,570 applies to Scottish taxpayers in the same way as the rest of the UK. Taxable income is calculated after deducting the personal allowance, pension contributions, gift aid, and other reliefs. The allowance tapers at £1 for every £2 of adjusted net income above £100,000, so it is fully withdrawn at £125,140.

Pension contributions and Scottish tax relief

Personal pension contributions attract tax relief at the Scottish rate paid. A Scottish basic-rate taxpayer contributing to a personal pension receives 20% at source, with the difference between 20% and the actual Scottish rate (19% starter, 21% intermediate) adjusted through self-assessment. Higher earners contributing from income taxed at 42% or above can claim additional relief via self-assessment.

Which income types use Scottish rates?

• Employment income and taxable benefits in kind.

• Self-employment profits.

• Rental income from UK property.

• Pension income (state pension and private pensions).

• Not savings interest — taxed at UK savings rates.

• Not dividends — taxed at UK dividend rates.

Pension relief at source for Scottish taxpayers

Personal pension contributions receive automatic 20% basic-rate relief at source regardless of whether you are a starter-rate or intermediate-rate Scottish taxpayer. If your actual Scottish rate is lower than 20% (you are a starter-rate payer), HMRC will not claw back the excess. If your rate is higher — 21% intermediate, 42% higher, or above — you claim the additional relief through your self-assessment return.

Gift Aid and Scottish rates

Charitable donations through Gift Aid extend your basic-rate band at the UK rate. For Scottish taxpayers this means the higher-rate threshold for the purpose of Gift Aid relief is the UK threshold (£50,270) rather than the Scottish threshold (£43,662). Additional relief for intermediate-rate Scottish taxpayers may need to be claimed via self-assessment.

Use our tax calculator for Scotland to calculate all six Scottish bands and compare them with the rest of the UK, or read our detailed guide to Scottish income tax explained for a worked example covering all six bands.