Scottish taxpayers pay income tax across six bands in 2026/27, not the three used in the rest of the UK, set by the Scottish Parliament under section 13 of the Scotland Act 2016[1]. Rates run from a 19% starter rate to a 48% top rate, which is why an 'S' prefixes a Scottish tax code.
What are the Scottish income tax bands for 2026/27?
| Band | Taxable income (2026/27) | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
How do I know if I pay Scottish income tax?
Where you live, not where you work. If your main home is in Scotland for most of the tax year, HMRC flags you as a Scottish taxpayer and adds an S to your tax code, for example S1257L. Only earned income, salary, pension and self-employment, is affected; savings and dividend tax stay UK-wide. The Personal Allowance is reserved to Westminster, so the £12,570 allowance is the same as elsewhere.
Why does my Scottish payslip differ from an English one?
Two earners on £40,000, one in Glasgow and one in Leeds, pay different income tax because Scotland splits the basic band into starter, basic and intermediate rates and charges a 21% slice an English taxpayer never sees. Higher earners pay 42% and 48% where the rest of the UK pays 40% and 45%. National Insurance is not devolved, so that line is identical across the UK. Bands reset each year by Scottish Budget resolution, so check the current figures before relying on them.
Primary sources
- 1.Scotland Act 2016, section 13 — legislation.gov.uk — Devolves income tax rates and bands to the Scottish Parliament
- 2.Income Tax in Scotland — gov.uk — Scottish bands, rates and the S tax-code prefix
- 3.Income Tax — Scottish Government — Scottish Budget rates set each year by Holyrood resolution
- 4.Income Tax rates and Personal Allowances — gov.uk — 2026/27 rest-of-UK bands for contrast
Editorial process: how we source and review UK tax content.