Scottish Income Tax: Complete Guide
Learn about Scotland's unique tax system, current rates for 2025/26, and how it differs from the rest of the UK.
What is Scottish Income Tax?
Scottish income tax applies to individuals who are resident in Scotland or who work in Scotland but are not resident there. Scotland has had the power to set its own income tax rates and bands since 1999, making it unique within the UK.
This means that if you live in Scotland, you pay Scottish income tax on your salary rather than following the standard UK tax system used in England, Wales, and Northern Ireland.
Who Pays Scottish Income Tax?
You pay Scottish income tax if:
- You are resident in Scotland for tax purposes
- You work in Scotland for the majority of the tax year
- You have a home in Scotland where you normally live
You can check your tax residency status with HMRC if you're unsure.
Scottish Tax Rates 2025/26
Scotland has six tax bands, more than the rest of the UK:
Personal Allowance
£0 - £12,570 (0% tax)
Starter Rate
£12,570 - £14,732 (19% tax)
Basic Rate
£14,732 - £25,688 (20% tax)
Intermediate Rate
£25,688 - £43,662 (21% tax)
Higher Rate
£43,662 - £125,140 (41% tax)
Top Rate
Above £125,140 (46% tax)
Important: These rates apply to your income progressively. You don't pay the highest rate on all your income, only on the portion that falls within each band.
Scotland vs Rest of UK
| Tax Band | Scotland | Rest of UK |
|---|---|---|
| Personal Allowance | £0 - £12,570 (0%) | £0 - £12,570 (0%) |
| First Rate (Starter) | 19% | 20% (Basic) |
| Higher Rate | 41% | 40% |
| Top Rate | 46% | 45% |
The key difference is that Scotland has an extra Starter Rate band at 19% and higher rates for those earning above the Higher Rate threshold.
National Insurance
While income tax differs between Scotland and the rest of the UK, National Insurance rates are the same throughout the UK. Employee contributions are:
- 8% on earnings between £12,570 and £50,270
- 2% on earnings above £50,270
Calculate Your Tax
Use our free calculators to see how much Scottish income tax you'll pay on your salary.