Scottish Tax Bands and Income Tax Rates for 2026/27

Scotland has six Income Tax bands where the rest of the UK has three, and the limits move almost every April. That makes a payslip hard to check. A pay rise that looks modest can cross into the 42% band years before it would in England, and earning just over £100,000 costs more in Scotland than anywhere else in the UK.

Here are the Scottish tax bands for 2026/27 in one place, along with what changed from last year, how they compare with England, the 67.5% trap above £100,000, earlier years back to 2022/23, and what to expect from the Scottish Budget on 3 December 2026.

Scottish tax bands for 2026/27

For the 2026/27 tax year, from 6 April 2026 to 5 April 2027, Scottish taxpayers pay 19% on income from £12,571 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 that. The first £12,570 is tax-free for anyone with the standard Personal Allowance.

The Personal Allowance is reduced by £1 for every £2 of income above £100,000, so it disappears completely at £125,140. These rates cover earnings, pensions, self-employed profit and rental profit. Savings interest and dividends are taxed at UK-wide rates instead.

How the Scottish tax bands changed from 2025/26

The Scottish Budget in January 2026 raised the start of the basic and intermediate bands by 7.4%, to £16,538 and £29,527. The starter band therefore grew from £12,571 to £15,397 last year to £12,571 to £16,537 this year. Nothing else moved. The higher rate still starts at £43,663, a threshold frozen since 2022/23, and the advanced and top rate thresholds are frozen at £75,000 and £125,140.

Since tax-free pay and the higher rate threshold are both frozen, someone earning £45,000 benefits from the wider lower bands but still has more of their pay taxed at 42% as wages rise.

Scottish income tax rates compared with England

England, Wales and Northern Ireland use three bands, 20% up to £50,270, 40% up to £125,140 and 45% above, covered in our guide to UK Income Tax bands and the Personal Allowance. Comparing the two shows exactly where Scottish taxpayers come out ahead or behind.

The 19% starter band means anyone in Scotland earning up to £33,493 pays slightly less Income Tax than they would in England, although the saving tops out at £39.67 a year. Above £33,493 the 21% rate and then the 42% rate take over, and the gap widens to £1,496.05 at £50,000. The Scottish income tax calculator shows the exact difference for any salary.

What salary triggers the higher rate in Scotland?

The 42% higher rate starts at £43,663 in Scotland, compared with £50,270 for the 40% rate in the rest of the UK. Between those two figures, a Scottish employee pays 42% Income Tax plus 8% National Insurance on each extra pound, which is 50%. An English employee on the same pay is still at 28%. Above £50,270 National Insurance drops to 2%, so the combined rate in Scotland falls back to 44%.

The 67.5% tax trap between £100,000 and £125,140

Scotland’s version of the “60% tax trap” is harsher. Income in this range is taxed at the 45% advanced rate, and every £2 also removes £1 of Personal Allowance. That lost allowance is then taxed at 45% too, so the effective rate on each pound is 67.5%, or 69.5% once 2% National Insurance is added.

Take a £10,000 bonus that lifts a salary from £100,000 to £110,000. The bonus itself is taxed £4,500 at 45%, and the £5,000 of allowance lost adds another £2,250 of tax. That is £6,750 in Income Tax, before National Insurance, on a £10,000 bonus.

How people avoid the Scottish 100k tax trap

The taper is based on adjusted net income, so anything that lowers that figure below £100,000 protects the allowance.

• Pension contributions through salary sacrifice or a net pay scheme reduce taxable pay directly.
• Relief at source contributions and Gift Aid donations are deducted from adjusted net income at their gross value.
• Exchanging a bonus for an employer pension contribution, where your employer allows it, keeps the bonus out of taxable pay altogether.

Families with children should also watch the High Income Child Benefit Charge, which applies between £60,000 and £80,000 across the UK.

Previous Scottish tax bands, 2022/23 to 2025/26

If you are checking an old payslip, a P60 or a refund, you need the bands for that year. The higher, advanced and top rate changes in 2023/24 and 2024/25 are the ones most people notice.

The 42% higher rate arrived in 2023/24, up from 41%, and the top rate rose to 47% with its threshold cut to £125,140. A year later the 45% advanced band was created between £75,001 and £125,140, and the top rate went up to 48%.

Who pays Scottish income tax?

You are a Scottish taxpayer if your main home is in Scotland, regardless of where your employer is based or where you work. HMRC decides from the address it holds for you and adds an S to the front of your tax code, such as S1257L.

• If you have homes in Scotland and elsewhere in the UK, the one you live in most of the time counts.
• If that is unclear, HMRC compares the days you spend in Scotland with the days elsewhere in the UK.
• If you move into or out of Scotland during the year, you pay Scottish rates for the whole year only if Scotland was your main home for longer than anywhere else.

If you live in Scotland and your code has no S, the wrong bands are being used. The tax code checker explains each part of a code.

Income that is not taxed at Scottish rates

Scottish rates apply to non-savings income only. Savings interest and dividends use the UK rates and allowances, including the Personal Savings Allowance and the Dividend Allowance. National Insurance is also set UK-wide, at 8% on earnings between £12,570 and £50,270 and 2% above.

Pension tax relief and Gift Aid follow your Scottish rate. The 20% added at source matches the basic rate, and Scottish taxpayers can claim an extra 1% at the intermediate rate, 22% at the higher rate, 25% at the advanced rate and 28% at the top rate through Self Assessment or by contacting HMRC.

Scottish tax bands for 2027/28: what we know so far

The 2027/28 rates and bands will be announced in the Scottish Budget on Thursday 3 December 2026 and are due to start on 6 April 2027. Until then, no thresholds for 2027/28 have been confirmed.

One new decision is on the table. From April 2027 the Scottish Parliament can set separate Income Tax rates for property income, using the same bands as other income. The UK Government is raising property income rates elsewhere from that date, so the Budget will show whether Scottish landlords face higher rates too. This page will be updated with the confirmed 2027/28 Scottish tax bands once the Budget is published.

Frequently Asked Questions

Sources

• GOV.UK: current rates and who pays
• GOV.UK: rates for 2025 to 2026
• Scottish Government: rates and bands by year
• Ross Martin Tax Consultancy: Scottish Budget date for 2027/28
• Fraser of Allander Institute: property income tax powers
• GOV.UK: employer rates and thresholds 2026 to 2027