Scotland has had its own income tax rates since 2017. With six bands instead of England's three, the system is more complicated — and the differences can be significant. Here's the honest picture.
Last updated: April 2026 · Written by the EasyCalculators team
While England, Wales and Northern Ireland use three main income tax bands (20%, 40%, 45%), the Scottish Parliament sets its own rates for Scottish taxpayers' employment and pension income. For 2025/26 there are six bands:
| Band | Income | Scottish rate | rUK rate |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | 0% |
| Starter | £12,571 – £15,397 | 19% | 20% |
| Basic | £15,398 – £27,491 | 20% | 20% |
| Intermediate | £27,492 – £43,662 | 21% | 20% |
| Higher | £43,663 – £75,000 | 42% | 40% |
| Advanced | £75,001 – £125,140 | 45% | 40% |
| Top | Over £125,140 | 48% | 45% |
Contrary to popular perception, lower earners pay slightly less tax in Scotland than in England. This is because the Starter rate (19%) is 1% lower than the English Basic rate (20%) on the first slice of taxable income.
The crossover point — where Scottish taxpayers start paying more than their English equivalents — is approximately £30,300. Below this salary, you pay slightly less in Scotland. Above it, you pay more.
Here's what the difference looks like for common UK salaries in 2025/26 (Income Tax only — NI is the same UK-wide):
| Salary | Scottish Income Tax | English Income Tax | Difference |
|---|---|---|---|
| £25,000 | £2,404 | £2,486 | −£82 (Scotland wins) |
| £30,000 | £3,455 | £3,486 | −£31 (Scotland wins) |
| £35,000 | £4,621 | £4,486 | +£135 (Scotland pays more) |
| £50,000 | £8,571 | £7,486 | +£1,085 |
| £60,000 | £13,071 | £11,432 | +£1,639 |
| £80,000 | £21,671 | £19,432 | +£2,239 |
| £100,000 | £30,271 | £27,432 | +£2,839 |
Here's a quirk that catches many Scottish higher earners off guard. National Insurance rates are set by Westminster and are identical across the whole UK. The NI threshold where you drop from 8% to 2% is £50,270 — which is the rest-of-UK higher-rate threshold, not Scotland's (£43,663).
This means that on income between £43,663 and £50,270, Scottish higher-rate taxpayers pay:
In England, the equivalent income band (£37,700–£50,270) is taxed at 20% IT + 8% NI = 28%. The disparity is stark — and it's one of the less-discussed aspects of Scottish fiscal devolution.
You're a Scottish taxpayer if Scotland is your main place of residence for more of the tax year than any other part of the UK. It's about where you live, not where you work. If you live in Edinburgh but commute to Newcastle, you're still a Scottish taxpayer.
Your tax code will start with S (e.g. S1257L). Your employer uses this code to deduct the correct amount. If you've recently moved to or from Scotland and your code doesn't reflect this, contact HMRC to get it corrected.
Scottish Income Tax only applies to non-savings, non-dividend income — primarily employment income and pension income. The following are taxed at UK-wide rates regardless of where you live: