What Are the Scottish Income Tax Rates? (UK 2025/26)

Since April 2017, the Scottish Parliament has had the power to set its own income tax rates and bands for non-savings, non-dividend income. For 2025/26, Scotland has six tax bands compared to three in the rest of the UK.

Scottish Tax Bands 2025/26

• Starter rate (19%): £12,571 to £15,397
• Basic rate (20%): £15,398 to £27,491
• Intermediate rate (21%): £27,492 to £43,662
• Higher rate (42%): £43,663 to £75,000
• Advanced rate (45%): £75,001 to £125,140
• Top rate (48%): Above £125,140

The personal allowance (£12,570) and its taper above £100,000 apply equally to Scottish taxpayers. Savings and dividend income is taxed at the same UK-wide rates regardless of where you live.

How HMRC Identifies Scottish Taxpayers

Your tax code will begin with an "S" (e.g. S1257L) if HMRC considers you a Scottish taxpayer. This is determined by your main place of residence on the start of the tax year (6 April), not where you work.

Key Differences

The higher rate starts at £43,663 in Scotland versus £50,271 in the rest of the UK, and the top rate is 48% versus 45%. This means Scottish taxpayers earning between £43,663 and £50,270 pay 42% in Scotland but only 20% in the rest of the UK — a significant difference.