Scottish Income Tax 2026/27: New Bands, Rates & Take-Home Pay Changes
Scottish income tax rates and bands for 2026/27. Starter band rises to £16,537, basic to £29,526. See how much more you take home compared to 2025/26 and England.
Last updated: February 2026
The Scottish Government has announced significant changes to income tax bands for the 2026/27 tax year (6 April 2026 to 5 April 2027). The starter and basic rate thresholds are increasing well above inflation, meaning most Scottish taxpayers will pay less income tax in 2026/27 than in 2025/26 on the same income.
Scottish Income Tax Rates & Bands 2026/27
| Band | 2025/26 | 2026/27 | Rate |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | Up to £12,570 | 0% |
| Starter | £12,571 – £15,397 | £12,571 – £16,537 | 19% |
| Basic | £15,398 – £27,491 | £16,538 – £29,526 | 20% |
| Intermediate | £27,492 – £43,662 | £29,527 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | £75,001 – £125,140 | 45% |
| Top | Over £125,140 | Over £125,140 | 48% |
What's Changed?
The two biggest changes for 2026/27 are:
- Starter rate band limit increased by 40.3% — from £15,397 to £16,537. This means more of your income is taxed at just 19% instead of 20%.
- Basic rate band limit increased by 13.6% — from £27,491 to £29,526. This pushes the threshold for the 21% intermediate rate higher.
Both increases are significantly above inflation (around 3.8% based on September 2025 CPI). The higher, advanced, and top rate thresholds remain frozen.
How Much More Will You Take Home?
Here's how the changes affect take-home pay at common Scottish salaries:
| Salary | 2025/26 monthly | 2026/27 monthly | Monthly gain |
|---|---|---|---|
| £25,000 | £1,747 | £1,749 | +£2 |
| £30,000 | £1,998 | £2,009 | +£11 |
| £35,000 | £2,248 | £2,261 | +£13 |
| £40,000 | £2,489 | £2,503 | +£14 |
| £50,000 | £2,970 | £2,984 | +£14 |
| £60,000 | £3,453 | £3,467 | +£14 |
The maximum annual saving from the band changes is approximately £168 per year (£14/month) for anyone earning above the intermediate threshold (£43,663+). Those earning below £25,000 see smaller gains, and those below the starter threshold (~£15,400) see no change.
Scotland vs England: Who Pays Less?
The Scottish Government states that around 55% of Scottish taxpayers will pay less income tax than they would elsewhere in the UK. The crossover point is approximately £33,500 — earn less than this and you pay slightly less in Scotland; earn more and you pay more.
For someone on a £30,000 salary, the difference is minimal — roughly £50/year less tax in Scotland. But at higher salaries the gap widens significantly: a £75,000 earner pays approximately £1,600 more per year in Scotland than in England.
Use our salary calculator to compare — select "Scottish tax rates" and switch between 2025/26 and 2026/27 to see the exact difference for your salary.
National Insurance: No Change
National Insurance is UK-wide and not devolved to Scotland. The rates remain the same for 2026/27:
- 8% on earnings between £12,584 and £50,284 (thresholds slightly up from £12,570/£50,270)
- 2% on earnings above £50,284
- Employer NI remains at 15% above £5,000
Dividend Tax Increase
Also UK-wide: dividend tax rates increase for 2026/27. The basic rate rises from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%. This affects Scottish Ltd company contractors and business owners drawing dividends. Use our contractor calculator to model the impact.
Key Dates
- 6 April 2026 — new 2026/27 rates take effect
- 31 January 2027 — deadline for 2025/26 Self Assessment tax return
- 5 April 2027 — end of 2026/27 tax year
Our calculator automatically switches to the 2026/27 tax year from 6 April 2026. You can also manually select it now to plan ahead.
Ready to calculate your take-home pay?
Use our free salary calculator with the latest 2025/26 rates.
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