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SCOTTISH RATE RESOLUTION
Scottish income tax for 2026/27.
Six bands, not three. The personal allowance is still the UK allowance of £12,570. National Insurance does not get a Scottish version.
| Band on income, full allowance | Rate |
|---|---|
| £12,571 to £16,537 | 19% starter |
| £16,538 to £29,526 | 20% basic |
| £29,527 to £43,662 | 21% intermediate |
| £43,663 to £75,000 | 42% higher |
| £75,001 to £125,140 | 45% advanced |
| Over £125,140 | 48% top |
Gov.scot published this table for 2026 to 2027. The starter and basic limits rose. Higher, advanced, and top thresholds were held. On £40,000, with a full allowance, tax is 19% of the slice to £16,537, 20% of the slice to £29,526, and 21% of the rest to £40,000, about £5,551. The same salary in England is £5,486 of income tax. The gap is small at £40,000 and wider once pay sits in the 42% band, which starts at £43,663 in Scotland and not at the English higher-rate threshold.
The allowance still tapers above £100,000, £1 for every £2. The calculator has a Scotland switch. Employee NI stays at 8% and 2% on the UK thresholds.
Questions
Does a Scottish taxpayer use an S code?
Yes. If the code does not start with S, Scottish rates are probably not being applied, and the England bands are.
Are savings and dividends Scottish?
These bands are the non-savings, non-dividend rates. Savings and dividend income follow UK rates. A plain salary is the case this page is for.
Sources
£40,000 and the gap versus England
With a full £12,570 allowance, Scottish tax on £40,000 is 19% on the starter slice up to £16,537, 20% up to £29,526, and 21% on the rest to £40,000, about £5,551. England on the same salary is 20% of £27,430, which is £5,486. The difference is £65. It is not a reason to treat the systems as identical once pay reaches the Scottish higher rate, which starts at £43,663 rather than at the English higher-rate threshold. National Insurance does not change when you tick Scotland.
Savings and dividend income do not use these bands. A plain salary does. If the code does not start with S, Scottish rates are probably not being applied.
£60,000, where the gap opens
At £40,000 the Scottish bill is only about £65 more than England. At £60,000 the Scottish higher rate of 42% has been running since £43,663, while England is still charging 20% until taxable income passes £37,700 and 40% after that. The two systems are close on a modest salary and not close once pay sits in the £50,000s. National Insurance on £60,000 is identical in Scotland and England, about £3,211, because the NI thresholds are UK-wide.
The personal allowance still tapers above £100,000. The top rate of 48% applies above £125,140, against 45% in the rest of the UK. Use the Scotland switch on the take-home calculator rather than adding a flat uplift to an English result.