Scottish income tax in 2026/27: bands, rates and who pays them
Published · 5 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Scotland sets its own income tax bands and rates for wages, pensions and most other income. This guide explains the 2026/27 figures, how HMRC decides who is a Scottish taxpayer, and what it means in pounds.
How Scottish income tax works
Income tax is a UK-wide system, but the Scottish Government decides the rates and bands that apply to most income of people who live in Scotland. That covers wages, pensions and most other taxable income. It does not cover dividends or savings interest, which are taxed at the same UK-wide rates wherever you live. The Personal Allowance, the amount of income you can receive before paying income tax, is also set by the UK Government and is the standard £12,570 for 2026/27. The bands described here sit on top of that allowance, so they only apply to income above it. The tax year runs from 6 April 2026 to 5 April 2027.
The bands compared with the rest of the UK
Scotland has six bands above the allowance, while England, Wales and Northern Ireland use three: a 20% basic rate on income up to £50,270, a 40% higher rate from £50,271 to £125,140, and a 45% additional rate above that. One difference is that the 42% Scottish higher rate starts at £43,663, about £6,600 below the £50,271 point (a gap of £6,608) where the 40% rate starts elsewhere in the UK, while at lower incomes Scottish bills can be slightly lower, as the examples below show. Both systems remove the Personal Allowance gradually for adjusted net income, which is broadly your taxable income before certain reliefs, above £100,000, by £1 for every £2 over that level, reaching zero at £125,140.
The bands also moved this year. For 2025/26 the starter band ended at £15,397 and the basic band at £27,491. For 2026/27 those limits are £16,537 and £29,526, rises of £1,140 and £2,035 respectively. The upper limits of the intermediate, higher and advanced bands (£43,662, £75,000 and £125,140) are the same as in 2025/26. This means more of a Scottish taxpayer's income falls into the lower-rate bands than a year earlier, which reduces tax for people in those ranges compared with leaving the bands where they were.
Who counts as a Scottish taxpayer
The general rule on GOV.UK is that you pay Scottish income tax if you live in Scotland. For people with more than one home in the UK, HMRC looks at where your main home is. That is usually where you live and spend most of your time, but it can be the home where you spend less time if most of your possessions are there, your family lives there, or you are registered there for things like a bank account, GP or car insurance. If you have no permanent home, it can come down to counting days: where you were at midnight decides where a day is spent, and if you spend more days in Scotland than elsewhere in the UK during the tax year, you are a Scottish taxpayer for the whole year. Members of the Scottish Parliament also pay it.
If you move into or out of Scotland, the rate that applies is based on where you lived for the longer period of the tax year, and a change is backdated to 6 April of the year you moved. Employers and pension providers apply the Scottish rate when your tax code starts with the letter S; with the standard allowance the code is S1257L. GOV.UK says you should tell HMRC your new address if you move to or from Scotland, as otherwise you may pay tax at the wrong rate. If you complete a Self Assessment return online, there is a box to say you pay Scottish income tax.
Worked examples
The figures below are illustrative only, not typical or recommended amounts. They assume a single employee with the standard £12,570 Personal Allowance, no other income and no reliefs, and ignore National Insurance, which is not set by Scotland. For example, on a £40,000 salary, taxable income above the allowance is £27,430. In Scotland: 19% of £3,967 (the starter band, £16,537 minus £12,570) is £753.73; 20% of £12,989 (the basic band) is £2,597.80; and 21% of £10,474 (the part of the salary above £29,526) is £2,199.54. The total is £5,551.07. Under the England, Wales and Northern Ireland bands the same income is taxed at 20% on £27,430, which is £5,486.00, so the Scottish bill is £65.07 higher.
The gap changes with income. On a £20,000 salary, the Scottish calculation is £753.73 plus 20% of £3,463 (£692.60), a total of £1,446.33, against £1,486.00 elsewhere, so the Scottish bill is £39.67 lower. On a £60,000 salary, the Scottish total is £753.73 + £2,597.80 + £2,968.56 (21% of £14,136) + £6,861.96 (42% of £16,338) = £13,182.05, while the rest-of-UK calculation is £7,540.00 (20% of £37,700) + £3,892.00 (40% of £9,730) = £11,432.00, a difference of £1,750.05. Your own position will depend on your pay, pension contributions and any other income.
Common points to check
- Look at the first letter of your tax code: an S means your employer or pension provider is applying Scottish rates.
- If you moved between Scotland and elsewhere in the UK, it can be worth confirming HMRC holds your current address.
- Savings interest and dividends follow UK-wide rates, so they are not taxed using the Scottish bands.
- Salary and pension income are both covered, so retirees receiving a pension in Scotland are included.
- These figures apply to income tax only. National Insurance and the Personal Allowance are set UK-wide.
Free help
If you think your tax code or residence status is wrong, HMRC can correct it, and Citizens Advice and MoneyHelper offer free, impartial guidance on tax and money matters. This guide is general information, not personal advice.
Check before you act
Rates and bands can change each tax year, so it can be worth confirming the figures on the official pages linked below before relying on any calculation. Scottish bands are set by the Scottish Parliament, and the GOV.UK pages are updated to match.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
