Scottish Income Tax 2026/27: New Bands, Rates & Take-Home Pay Changes

The Scottish Government widened the starter and basic rate bands for the 2026/27 tax year (6 April 2026 to 5 April 2027). Both thresholds rose by 7.4%, above inflation, so most Scottish taxpayers pay slightly less income tax in 2026/27 than in 2025/26 on the same income — up to £31.75 a year. Rates and all other thresholds are unchanged. For the full six-band comparison with England, see our Scottish tax rates guide.

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 7.4% — from £15,397 to £16,537. An extra £1,140 of income is taxed at 19% instead of 20%, saving up to £11.40 a year.
Basic rate band limit increased by 7.4% — from £27,491 to £29,526. An extra £2,035 of income is taxed at 20% instead of 21%, saving up to £20.35 a year.

Both increases are above inflation (CPI was 3.8% in September 2025). The higher, advanced, and top rate thresholds remain frozen, and no rates changed.

How Much More Will You Take Home?

Here's how the changes affect annual income tax and monthly take-home pay at common Scottish salaries (no pension, no student loan, standard S1257L code; National Insurance is unchanged):

Salary	Income tax 2025/26	Income tax 2026/27	Monthly take-home 2026/27	Annual saving
£25,000	£2,457.73	£2,446.33	£1,796.61	£11.40
£30,000	£3,482.82	£3,451.07	£2,096.21	£31.75
£35,000	£4,532.82	£4,501.07	£2,392.04	£31.75
£40,000	£5,582.82	£5,551.07	£2,687.88	£31.75
£50,000	£9,013.80	£8,982.05	£3,168.63	£31.75
£55,000	£11,113.80	£11,082.05	£3,400.61	£31.75
£60,000	£13,213.80	£13,182.05	£3,633.95	£31.75

The maximum annual saving from the band changes is £31.75 per year (about £2.65 a month) for anyone earning £29,526 or more. Those earning between £15,397 and £29,526 save less, and those earning £15,397 or below 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 — about £35/year less tax in Scotland (£3,451.07 vs £3,486). But at higher salaries the gap widens significantly: a £55,000 earner pays about £1,650 more in Scotland (£11,082.05 vs £9,432), and a £75,000 earner pays approximately £2,050 more per year (£19,482.05 vs £17,432).

Use our salary calculator to compare — select Scotland to see the exact difference for your salary, or jump straight to the £30,000 and £55,000 Scottish salary pages.

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 £12,570 and £50,270 (thresholds unchanged)
2% on earnings above £50,270
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 uses the 2026/27 rates and bands, including the Scottish bands above.