· 3 min read
Scottish income tax 2026/27: who pays more than England
Scots earning under about £33,500 pay slightly less income tax than the rest of the UK in 2026/27. Above that, the gap widens fast. Full comparison inside.
Scotland sets its own income tax rates and bands on earnings, pensions and rental income. For 2026/27 the Scottish Government raised the starter and basic rate thresholds by 7.4% and left the rest unchanged.
The 2026/27 Scottish bands
These figures assume the standard £12,570 Personal Allowance.
| Band | Rate | Income |
|---|---|---|
| Starter | 19% | £12,571 to £16,537 |
| Basic | 20% | £16,538 to £29,526 |
| Intermediate | 21% | £29,527 to £43,662 |
| Higher | 42% | £43,663 to £75,000 |
| Advanced | 45% | £75,001 to £125,140 |
| Top | 48% | Over £125,140 |
The rest of the UK uses 20% to £50,270, 40% to £125,140 and 45% above.
Who pays more and who pays less
Here is the income tax on a salary alone for 2026/27, with no pension or other deductions.
| Salary | England | Scotland | Difference |
|---|---|---|---|
| £15,000 | £486.00 | £461.70 | £24.30 less |
| £20,000 | £1,486.00 | £1,446.33 | £39.67 less |
| £25,000 | £2,486.00 | £2,446.33 | £39.67 less |
| £30,000 | £3,486.00 | £3,451.07 | £34.93 less |
| £35,000 | £4,486.00 | £4,501.07 | £15.07 more |
| £40,000 | £5,486.00 | £5,551.07 | £65.07 more |
| £50,000 | £7,486.00 | £8,982.05 | £1,496.05 more |
| £75,000 | £17,432.00 | £19,482.05 | £2,050.05 more |
| £100,000 | £27,432.00 | £30,732.05 | £3,300.05 more |
| £150,000 | £53,703.00 | £59,634.35 | £5,931.35 more |
The crossover sits at around £33,500. Below it, Scottish taxpayers pay up to about £40 a year less. Above it the gap grows quickly, mainly because the Scottish higher rate of 42% starts at £43,663, while in England 40% starts at £50,270.
The band to watch: £43,663 to £50,270
In this slice a Scottish taxpayer pays 42% income tax plus 8% National Insurance, a marginal rate of 50%. An English taxpayer on the same pay pays 20% plus 8%. National Insurance is set UK-wide, so it does not adjust for the Scottish higher rate.
The £100,000 trap is steeper in Scotland
The Personal Allowance taper applies everywhere. Between £100,000 and £125,140 you lose £1 of allowance for every £2 earned. In Scotland that sits on the 45% advanced rate, giving an effective rate of 67.5%, or 69.5% with National Insurance. Income tax rises from £30,732.05 at £100,000 to £47,701.55 at £125,140.
What changed from last year
The higher starter and basic thresholds give most Scottish taxpayers a small cut. On £20,000, income tax falls from £1,457.73 in 2025/26 to £1,446.33. On £30,000 and on £50,000, it falls by £31.75.
Savings and dividends use UK rates
Scottish rates only apply to non-savings income. Interest and dividends are taxed at UK rates and bands, so a Scottish taxpayer's dividend tax is worked out the same way as anyone else's.
Who counts as a Scottish taxpayer
Scottish taxpayer status follows your main home. If you live in Scotland and commute to Carlisle, you pay Scottish rates. Your tax code should start with S. If it does not, HMRC has the wrong address and you are being taxed at rUK rates.
What to do now
- Check your payslip or the HMRC app: a Scottish taxpayer's code starts with S, such as S1257L.
- If you earn between £43,663 and £50,270, salary sacrifice into a pension saves 42% tax plus 8% NI on every pound sacrificed.
- Higher, advanced and top rate taxpayers paying into a relief-at-source pension should claim the extra relief.
- Compare your own figures for both systems in our Scottish income tax calculator.