Scottish income tax bands 2025/26
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In short. Scottish taxpayers (people whose main home is in Scotland) pay six bands of income tax on non-savings, non-dividend income in 2025/26: 19% (starter), 20% (basic), 21% (intermediate), 42% (higher), 45% (advanced) and 48% (top). Personal Allowance of £12,570 still applies. Savings and dividend income are taxed at UK rates regardless of where in the UK you live.
Income tax on earned income has been partially devolved to the Scottish Parliament since 2017/18. The bands and rates are set each year by the Scottish Government and applied through PAYE using an 'S' tax code prefix.
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Scottish income tax bands 2025/26 (non-savings, non-dividend income)
- Starter rate — 19% on £12,571 to £15,397
- Basic rate — 20% on £15,398 to £27,491
- Intermediate rate — 21% on £27,492 to £43,662
- Higher rate — 42% on £43,663 to £75,000
- Advanced rate — 45% on £75,001 to £125,140
- Top rate — 48% above £125,140
- Personal Allowance — £12,570 (UK-wide); tapers above £100,000
What's the same as the rest of the UK
- Personal Allowance (£12,570, frozen until April 2028)
- Dividend tax rates and allowance (£500 dividend allowance)
- Savings income (Personal Savings Allowance and starting rate for savings)
- National Insurance rates and thresholds
- Capital Gains Tax
- Inheritance Tax
How HMRC knows you're a 'Scottish taxpayer'
HMRC apply Scottish rates based on the address on the personal tax record. The test is where the person's 'main place of residence' is for the majority of the tax year, not the work location. The PAYE tax code is prefixed with 'S' (e.g. S1257L).
FAQ
- I moved to Scotland mid-year — which rates apply?
- HMRC apply Scottish rates if Scotland was the main residence for the majority of days in the tax year. Where the split is close, the location at midnight on 5 April is used as a tie-breaker.
- Are pension contributions affected?
- Pension tax relief is more complex for Scottish taxpayers because the basic-rate relief 'at source' is still given at 20% (UK basic rate). Starter-rate Scottish taxpayers get a small extra refund; higher/advanced/top-rate Scottish taxpayers can reclaim additional relief through Self Assessment.
- Does this change my marriage allowance?
- Marriage Allowance is only available when the higher earner pays the Scottish starter, basic or intermediate rate (the rest-of-UK equivalent is the basic rate). The maximum benefit is the same £252/year.