Scottish Tax Brackets 2025/26

Explore Scotland's unique tax bands and compare with previous years

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Tax Brackets 2025-26

Personal Allowance

£0 - £12,570

0%

£12,570

Starter Rate

£12,570 - £14,732

19%

£2,162

Basic Rate

£14,732 - £25,688

20%

£10,956

Intermediate Rate

£25,688 - £43,662

21%

£4,312

Higher Rate

£43,662 - £125,140

41%

Top Rate

£125,140 - £250,000

46%

Tax Breakdown

Personal Allowance£0
Starter Rate£410.78
Basic Rate£2,191.2
Intermediate Rate£905.52
Total Tax£3,507.5

Key Metrics

Effective Tax Rate

11.69%

Marginal Tax Rate (at top)

46%

Personal Allowance: The first £12,570 of income is tax-free under your personal allowance.

Understanding Scottish Tax Brackets

Scotland has its own unique tax system with different tax bands compared to the rest of the UK. These bands apply to residents in Scotland for income tax purposes.

The Six Scottish Tax Bands (2025/26)

Personal Allowance: £0 - £12,570

Your income up to this amount is not taxed

Starter Rate: £12,570 - £14,732 (19%)

Lowest tax band - applies to initial earnings above allowance

Basic Rate: £14,732 - £25,688 (20%)

Standard tax rate for mid-range earners

Intermediate Rate: £25,688 - £43,662 (21%)

Slightly higher rate for upper-middle earners

Higher Rate: £43,662 - £125,140 (41%)

High earners pay this rate on income above threshold

Top Rate: Above £125,140 (46%)

Highest earners pay this rate on top slice of income

How Tax Bands Work

You don't pay the highest rate on all your income - instead, tax is calculated progressively. For example, if you earn £30,000:

  • £12,570 is tax-free (personal allowance)
  • £2,162 (£14,732 - £12,570) taxed at 19% = £410.78
  • £10,956 (£25,688 - £14,732) taxed at 20% = £2,191.20
  • £4,284 (£30,000 - £25,716) taxed at 21% = £899.64
  • Total tax: £3,501.62

Scotland vs Rest of UK

The main differences between Scottish and UK tax bands:

  • Scotland has an extra tax band (Starter Rate at 19%)
  • Scotland's Basic Rate (20%) is lower than the rest of UK's Higher Rate (40%)
  • Scotland's Higher Rate (41%) is higher than the rest of UK's Higher Rate (40%)
  • Scotland has a Top Rate (46%) while rest of UK uses 45%