Scottish Tax Brackets 2025/26: Complete Guide
Understanding Scotland's six tax brackets and how they affect your income tax bill.
Quick Overview of Scottish Tax Brackets
Scotland has six income tax bands, more than the rest of the UK (which has three). This gives Scotland's tax system more progressivity, with higher earners paying proportionally more tax.
Personal Allowance:
£0 - £12,570 @ 0%
Starter Rate:
£12,570 - £14,732 @ 19%
Basic Rate:
£14,732 - £25,688 @ 20%
Intermediate Rate:
£25,688 - £43,662 @ 21%
Higher Rate:
£43,662 - £125,140 @ 41%
Top Rate:
£125,140+ @ 46%
Detailed Breakdown of Each Bracket
1. Personal Allowance (£0 - £12,570)
Tax Rate: 0%
This is the amount of income you can earn completely tax-free. Everyone in the UK is entitled to at least the basic personal allowance of £12,570 for the 2025/26 tax year.
Example: If you earn £12,570 in a year, you pay £0 tax.
Note: The personal allowance can be higher if you were born before 6 April 1948, or lower if your income exceeds £125,140.
2. Starter Rate (£12,570 - £14,732)
Tax Rate: 19%
Bracket width: £2,162 at 19%
The Starter rate is unique to Scotland and is lower than the Basic rate. This band was introduced to help lower and middle-income earners.
Example: On a £15,000 salary: First £12,570 is tax-free, then £2,162 (£14,732 - £12,570) × 19% = £410.78 tax.
3. Basic Rate (£14,732 - £25,688)
Tax Rate: 20%
Bracket width: £10,956 at 20%
The Basic rate applies to income from £14,732 up to £25,688. This is the main band where most middle-income earners fall.
Example: On a £20,000 salary: Tax = £12,570 (allowance) + £2,162 × 19% + £5,268 × 20% = £410.78 + £1,053.60 = £1,464.38
4. Intermediate Rate (£25,688 - £43,662)
Tax Rate: 21%
Bracket width: £17,974 at 21%
The Intermediate rate is another feature unique to Scotland. It sits between the Basic and Higher rates, providing a more gradual progression.
Example: On a £30,000 salary, this bracket captures income from £25,688 to £30,000 = £4,312 × 21% in additional tax.
5. Higher Rate (£43,662 - £125,140)
Tax Rate: 41%
Bracket width: £81,478 at 41%
The Higher rate in Scotland (41%) is higher than the rest of the UK (40%), reflecting Scotland's higher tax burden on higher earners.
Key Point: This is a significant jump from the previous brackets, encouraging higher earners to contribute more to public services.
6. Top Rate (£125,140+)
Tax Rate: 46%
Unlimited bracket for earnings above threshold
The Top rate applies to all income above £125,140. This is the highest rate in the UK, at 46% compared to 45% in England, Wales, and Northern Ireland.
Impact: Combined with National Insurance, the effective marginal rate on top earnings can exceed 50%.
How Scotland's Brackets Compare to Rest of UK
| Income Range | Scotland | Rest of UK |
|---|---|---|
| £0 - £12,570 | 0% | 0% |
| £12,570 - £14,732 | 19% (Starter) | 20% (Basic) |
| £14,732 - £25,688 | 20% (Basic) | 20% (Basic) |
| £25,688 - £43,662 | 21% (Intermediate) | 40% (Higher) |
| £43,662 - £125,140 | 41% (Higher) | 40% (Higher) |
| £125,140+ | 46% (Top) | 45% (Top) |
Key Differences:
- Scotland has 6 bands vs 3 in rest of UK - more progressive
- Scotland's Starter rate (19%) is 1% lower than Basic (20%)
- Scotland introduces Intermediate rate (21%) not found elsewhere
- Higher rates (41% and 46%) are higher than rest of UK (40% and 45%)
Understanding Marginal vs Effective Tax Rate
Marginal Tax Rate
The tax rate you pay on your next pound of income. For example, if you earn £30,000, your marginal rate is 21% (the Intermediate rate), meaning your next £1 earned will be taxed at 21%.
Effective Tax Rate
Your actual average tax rate across your entire income. For £30,000, you pay approximately £4,200 tax = 14% effective rate.
Example Calculation (£30,000 salary)
- • £12,570 @ 0% = £0
- • £2,162 @ 19% = £410.78
- • £10,956 @ 20% = £2,191.20
- • £4,312 @ 21% = £905.52
- • Total Tax: £3,507.50
- • Effective Rate: 11.7%
Tax Planning Tips
- Use your Personal Allowance: Make sure you're getting your full £12,570 allowance. If self-employed, you may miss it.
- Pension Contributions: Money paid into pensions reduces your taxable income, helping you stay in lower brackets.
- Marriage Allowance: If one partner doesn't use their allowance, they can transfer it to their partner.
- Higher earners: Consider tax-efficient strategies to manage your position in higher brackets.
- Keep Records: If eligible for tax relief (e.g., working from home), claim it to reduce your tax bill.
Use Our Calculators
Want to see exactly how much tax you'll pay on your salary? Use our free Scottish tax calculators:
Disclaimer: This guide is for informational purposes. While we strive for accuracy, tax rules can be complex and change annually. Consult a tax professional for personalized advice about your situation.