Scottish Income Tax Calculator

Who pays Scottish Income Tax

You pay Scottish Income Tax if you live in Scotland. Where you work, and where your employer is based, do not matter. Someone who lives in Edinburgh and works for a London company pays Scottish rates; someone who lives in Carlisle and works in Glasgow does not.

If you have more than one home, what counts is your main home: usually the one where you spend most of your time. HMRC knows you are a Scottish taxpayer from your address, and your tax code starts with an S, such as S1257L. If you move to or from Scotland, update your address with HMRC so your code changes.

The six bands for 2026/27

For 2026/27 the Scottish Government raised the starter and basic thresholds, so more income is taxed at 19% and 20%. The higher, advanced and top thresholds stayed the same. The Personal Allowance is set by the UK Government and is £12,570 everywhere. It is withdrawn above £100,000 in Scotland just as in the rest of the UK.

A worked example

Elsewhere in the UK the same salary pays £6,486 in Income Tax, so this person pays £396.05 a year more in Scotland. National Insurance is £2,594.40 either way.

Scotland against the rest of the UK

Below about £33,500 the 19% starter rate saves a little, up to about £40 a year. Above that, the 21% intermediate rate and the earlier start of the 42% band mean Scottish taxpayers pay more, and the gap widens as income rises.

The 50% zone and other marginal rates

Because National Insurance is set UK-wide, its thresholds do not line up with the Scottish bands. Between £43,663 and £50,270 you pay 42% Income Tax and also the 8% main rate of NI: 50% of every extra pound.

The starter band is narrow: 19% tax plus 8% NI makes 27%, then 28% in the basic band. The steepest part is between £100,000 and £125,140: the allowance is withdrawn while you pay the 45% advanced rate, giving an effective 67.5% Income Tax rate, or 69.5% with NI.

What the Scottish rates apply to

Scottish rates and bands apply to non-savings, non-dividend income:

• Wages, bonuses and benefits in kind from employment.
• Self-employed profits.
• Pensions, including the State Pension.
• Rental income from property.

Savings interest and dividends are taxed using the UK bands and rates, wherever you live. So are capital gains. Scottish taxpayers get the same £1,000 or £500 Personal Savings Allowance, based on the UK higher-rate threshold of £50,270, and the same £500 dividend allowance.

National Insurance, the Personal Allowance and the High Income Child Benefit Charge are also UK-wide.

Pensions, Gift Aid and Marriage Allowance

With salary sacrifice, contributions come off your pay before tax, so you automatically get relief at your Scottish rate.

With a relief-at-source pension, the provider adds 20% to what you pay, even if you are a 19% starter-rate taxpayer; HMRC does not take back the extra 1%. Intermediate, higher, advanced and top rate taxpayers can claim the rest of their relief (1%, 22%, 25% or 28%) through Self Assessment or by contacting HMRC. Many intermediate-rate taxpayers get the extra 1% through their tax code without asking.

Marriage Allowance works in Scotland if the person receiving it pays tax at the starter, basic or intermediate rate. It cuts their tax by up to £252 a year.

Plan 4 student loans

Students who were living in Scotland when they started a course funded by the Student Awards Agency Scotland are usually on Plan 4. Repayments are 9% of income above £33,795 a year in 2026/27, the highest threshold of any plan. Postgraduate loans for Scottish students are also usually on Plan 4.

Plan 4 repayments are collected through payroll like other plans, and are worked out on each payment, using a monthly threshold of £2,816.25.

Moving to or from Scotland

You are either a Scottish taxpayer or not for the whole tax year. If you move part-way through, what counts is where you lived for longer between 6 April and 5 April. Someone who moves from Leeds to Glasgow in August has lived in Scotland for most of that year, so the whole year’s income is taxed at Scottish rates.

Tell HMRC about your new address as soon as you move. Your employer will then switch your code to or from an S code. If the change comes late in the year, the next payslips may include a catch-up of tax under the right rates, and any remaining difference is settled after the year ends.

Pensioners in Scotland

The State Pension and private pensions are taxed at Scottish rates if you live in Scotland. The full new State Pension is £12,547.60 for 2026/27, just under the Personal Allowance, so most other pension income is taxed from the first pound, starting at the 19% starter rate.

Lump sums from pensions follow the same rules: the tax-free 25% is tax-free everywhere, and the rest is added to your income for the year, which can push you into the 42% band in Scotland much sooner than in England.

Self-employed and landlords

Self-employed profits and rental profits are taxed at Scottish rates through Self Assessment. Your tax return asks whether you are a Scottish taxpayer, and HMRC uses your address to check.

Class 4 National Insurance is UK-wide: 6% on profits between £12,570 and £50,270 and 2% above. So a self-employed person in Scotland with profits between £43,663 and £50,270 pays 42% Income Tax plus 6% NI, a 48% marginal rate.

Payments on account are based on last year’s bill, so if Scottish rates make your bill higher, the first year’s balancing payment can be larger than expected. Set money aside as you go.

Why Scotland’s tax is different

Since April 2017, under the Scotland Act 2016, the Scottish Parliament has set the rates and bands of Income Tax on earnings, pensions and rental income for Scottish taxpayers. HMRC still collects the tax, and the money goes to the Scottish Government’s budget.

The UK Government keeps control of the Personal Allowance, National Insurance, and tax on savings and dividends, which is why those parts of your tax bill are the same as anywhere else in the UK. The Scottish Government sets its rates each year in the Scottish Budget, usually published in December or January for the following April.

Looking beyond Income Tax

Higher Income Tax is only part of the picture when comparing living in Scotland with elsewhere in the UK. Some costs are lower or do not exist:

• NHS prescriptions are free in Scotland, compared with £9.90 an item in England.
• Eligible Scottish students pay no tuition fees at Scottish universities.
• Average Band D council tax for 2026/27 is £1,662 in Scotland, against £2,392 in England, before water charges.
• Personal care for adults who need it is free, whatever their age.

Whether you are better or worse off overall depends on your income, family and circumstances, but for many households on middle incomes the difference is smaller than the Income Tax figures alone suggest. Families with children at university, or people who need regular prescriptions, can come out ahead even on salaries where Scottish Income Tax is higher.

Scottish take-home pay at common salaries

Figures assume a standard tax code, no pension and no student loan. National Insurance is included and is the same on both sides of the border.

Key numbers for 2026/27