Since 2017 the Scottish Government has set its own income tax rates for non-savings, non-dividend income. The Scottish bands are more detailed than the rest of the UK and have grown further apart every year. For 2026/27 the gap at higher salaries is the largest it has ever been.
The 2026/27 bands side by side
Personal allowance: both systems share the same £12,570 personal allowance.
Rest of UK
- Basic 20 per cent to £50,270
- Higher 40 per cent to £125,140
- Additional 45 per cent above £125,140
Scotland
- Starter 19 per cent to £14,876
- Basic 20 per cent to £26,561
- Intermediate 21 per cent to £43,662
- Higher 42 per cent to £75,000
- Advanced 45 per cent to £125,140
- Top 48 per cent above £125,140
Worked examples
£20,000 salary: In Scotland you pay a slightly lower rate on the first £2,306 above the personal allowance (19 per cent instead of 20), so you are marginally better off — around £21 a year.
£35,000 salary: The higher Scottish intermediate rate (21 per cent) from £26,562 kicks in, so Scots pay around £88 more than someone in England on the same salary.
£55,000 salary: The Scottish higher rate (42 per cent) starts much earlier than the UK 40 per cent band, so a Scot pays roughly £1,700 more.
£100,000 salary: The gap widens to about £3,300 more in Scotland.
Run your own position with our Scottish income tax calculator or compare side-by-side with our UK salary calculator.
What Scottish tax does not cover
Scottish bands only apply to earned income, rental income, and pensions. Savings interest, dividends, and capital gains still use the rest-of-UK rates regardless of where you live. This is why a Scottish saver with large interest income may find their effective tax bill closer to the rest of the UK than they expected.
National Insurance is UK-wide
National Insurance is set by Westminster, not Holyrood. Employees in Scotland pay the same 8 per cent as elsewhere in the UK. It is only the income tax slices that change.
Planning points
- Pension contributions are often more valuable for Scots in the 42 or 48 per cent band.
- Salary sacrifice can save both Scottish income tax and UK National Insurance at the same time.
- Self-employed individuals with rental income should split their accounts clearly, because only earned-style income falls into Scottish rates.
The bottom line
For most Scottish earners under around £28,000, the system is slightly cheaper than the rest of the UK. Above that, it becomes steadily more expensive. Whether the trade-off is worth it depends on public services, location, and life stage — but the numbers themselves are easy to check.