Since 2017, the Scottish Parliament has had the power to set its own income tax rates and bands for Scottish taxpayers. The result is a more graduated system than the rest of the UK, with six bands instead of three (plus the zero-rate Personal Allowance).
Scottish Income Tax Bands 2025/26
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £15,397 | 19% |
| Basic Rate | £15,398 – £27,491 | 20% |
| Intermediate Rate | £27,492 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Rest of UK Bands 2025/26 (England, Wales, Northern Ireland)
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Who Pays Scottish Rates?
You pay Scottish income tax if you are a Scottish taxpayer, which HMRC defines as someone whose main place of residence is in Scotland for more than the rest of the UK during the tax year. Where you work does not determine your tax residency — where you live does.
HMRC will usually apply a Scottish tax code (prefixed with S, e.g. S1257L) to your employment automatically.
Where Scotland Differs Most
Lower earners: The 19% Starter Rate means those earning just above the Personal Allowance pay slightly less than their rUK counterparts (19% vs 20%).
Middle earners: Scottish taxpayers pay 1% more at the Intermediate Rate (21%) and diverge further as earnings rise.
Higher earners: The most significant differences emerge above £43,662 — Scotland’s Higher Rate of 42% applies some £6,600 below the rUK’s 40% threshold of £50,270. This means a Scottish taxpayer earning £50,000 will pay approximately £1,500 more in income tax than an equivalent rUK taxpayer.
Top earners: Scotland’s 48% Top Rate above £125,140 is 3 percentage points higher than the UK’s 45% Additional Rate.
National Insurance Is Unaffected
Crucially, National Insurance contributions are a reserved matter — they are set by Westminster and are identical for Scottish and rUK workers. The differences only apply to income tax.
Key Takeaway
Scottish income tax is meaningfully different for most earners above the Basic Rate. If you live in Scotland, make sure you use a calculator that includes Scottish rates — using rUK rates will give you an incorrect picture of your take-home pay.