Scottish Tax Rates 2025/26 vs England: All 6 Bands Compared

Since 2017, the Scottish Parliament has had the power to set its own income tax rates and bands. Scotland now has 6 tax bands compared to England's 3, with some key differences that mean most Scottish earners pay more income tax — but lower earners actually pay less. Here's the complete picture for 2025/26.

Scottish Income Tax Bands 2025/26

Band	Taxable Income	Rate
Starter Rate	£12,571 – £14,876	19%
Basic Rate	£14,877 – £26,561	20%
Intermediate Rate	£26,562 – £43,662	21%
Higher Rate	£43,663 – £75,000	42%
Advanced Rate	£75,001 – £125,140	45%
Top Rate	Over £125,140	48%

England, Wales & Northern Ireland Tax Bands 2025/26

Band	Taxable Income	Rate
Basic Rate	£12,571 – £50,270	20%
Higher Rate	£50,271 – £125,140	40%
Additional Rate	Over £125,140	45%

Side-by-Side Comparison at Key Salaries

Here's how much income tax you'd pay in Scotland vs England at different salary levels (before National Insurance, which is the same across the UK):

Salary	Scotland Tax	England Tax	Difference
£20,000	£1,452	£1,486	£34 less in Scotland
£25,000	£2,432	£2,486	£54 less in Scotland
£28,000	£3,064	£3,086	£22 less in Scotland
~£28,850	Approximately equal		Breakeven point
£30,000	£3,354	£3,486	Approx equal / slightly more
£35,000	£4,404	£4,486	Scotland starts paying more
£40,000	£5,654	£5,486	£168 more in Scotland
£50,000	£8,354	£7,486	£868 more in Scotland
£60,000	£12,554	£11,432	£1,122 more in Scotland
£80,000	£20,954	£19,432	£1,522 more in Scotland
£100,000	£29,954	£27,432	£2,522 more in Scotland

Note: Figures are approximate and based on standard tax codes. Use our salary calculator for exact figures including NI and pension.

The Breakeven Point

The crossover point where Scotland becomes more expensive than England is approximately £28,850. Below this salary, Scotland's 19% starter rate band (which doesn't exist in England) means you pay less tax. Above this, Scotland's higher rates at 21%, 42%, and 45% kick in sooner and steeper.

Key takeaway: if you earn under ~£29,000, being in Scotland is a minor tax advantage. Above that, you pay progressively more — and the gap widens significantly above £43,663 when Scotland's 42% rate applies (vs 20% in England at the same income level).

How Scottish Tax Codes Work

If you live in Scotland, your tax code will start with the letter S. For example, S1257L means the standard personal allowance of £12,570 with Scottish tax rates applied.

Important points:

Where you live determines your tax code — not where you work. If you live in Scotland but commute to England, you pay Scottish rates.
HMRC determines your code based on your registered address. If you move between Scotland and England, update your address with HMRC.
Your employer can't choose — they apply whichever code HMRC issues. You can't request a non-Scottish code to pay less tax.

What's the Same Across the UK

Despite different income tax rates, these remain identical:

Personal allowance — £12,570 everywhere (set by Westminster)
National Insurance — Same rates and thresholds across the UK (8% employee, 15% employer)
Student loan repayments — Same thresholds and rates regardless of where you live
Pension tax relief — Works the same way (see our pension tax relief guide)
Marriage Allowance — Available in Scotland, though the higher earner must be an intermediate rate taxpayer or below (income under £43,663)
VAT, capital gains tax, inheritance tax — All UK-wide

Scotland's Advanced Rate: The £75,000 Band

From 2024/25, Scotland introduced a new Advanced Rate of 45% on income between £75,001 and £125,140. This is a rate that doesn't exist in England (where 40% applies up to £125,140). Combined with the Higher Rate starting at £43,663 (vs £50,271 in England), this creates a significant gap for middle-to-high earners.

The practical impact: someone earning £100,000 in Scotland pays about £2,500 more per year in income tax than an identical earner in England.

The £100,000 Trap: Even Worse in Scotland

In both Scotland and England, your personal allowance is progressively removed once income exceeds £100,000 — it reduces by £1 for every £2 earned above £100,000, creating an effective 60% marginal rate in England (40% + 20% allowance withdrawal).

In Scotland, this is even more punishing: the effective marginal rate between £100,000 and £125,140 is 67.5% (45% Advanced Rate + 22.5% from allowance withdrawal calculated at the 45% rate). This makes pension contributions particularly valuable for Scottish earners in this range — salary sacrifice into a pension avoids both the tax and the allowance taper.

Recent Changes to Scottish Tax Rates

Tax Year	Key Changes
2017/18	First year of devolved rates — Scotland kept same bands as rUK
2018/19	5 bands introduced (Starter 19%, Basic 20%, Intermediate 21%, Higher 41%, Top 46%)
2023/24	Top rate increased to 47%
2024/25	6 bands — Advanced Rate (45%) added at £75,001. Higher rate up to 42%. Top rate up to 48%.
2025/26	Rates unchanged. Thresholds adjusted slightly for inflation.

Should You Move to Avoid Scottish Tax?

Some higher earners consider whether Scottish tax rates justify moving south of the border. In reality:

The maximum extra tax paid by a £100,000 earner in Scotland vs England is roughly £2,500/year — significant but unlikely to justify the cost and disruption of relocating
Scotland has other cost advantages: generally lower housing costs, free prescriptions, free university tuition for Scottish residents
The extra tax revenue funds Scottish public services
Moving your registered address solely for tax purposes while continuing to work/live in Scotland would likely be considered tax evasion

Scottish Tax Calculator

Use our salary calculator and select "Scotland" to see the exact tax breakdown with Scottish rates. We calculate all 6 bands automatically, plus National Insurance, student loan repayments, and pension contributions.