Scotland has its own income tax rates, set by the Scottish Parliament. For 2026/27, Scotland has six tax bands compared to England's three, and most Scottish taxpayers pay more income tax than their English counterparts.
Scottish income tax rates 2026/27: Starter rate (19%): £12,571 to £16,537 Scottish basic rate (20%): £16,538 to £29,526 Intermediate rate (21%): £29,527 to £43,662 Higher rate (42%): £43,663 to £75,000 Advanced rate (45%): £75,001 to £125,140 Top rate (48%): Over £125,140
England and Wales rates 2026/27: Basic rate (20%): £12,571 to £50,270 Higher rate (40%): £50,271 to £125,140 Additional rate (45%): Over £125,140
The personal allowance of £12,570 is the same across the UK. National Insurance rates are also the same — only income tax differs.
The difference in take-home pay is noticeable at middle and higher incomes. On a £40,000 salary, a Scottish taxpayer pays approximately £400 more in income tax than an English taxpayer. On £60,000, the difference grows to approximately £1,800. On £80,000, it is approximately £2,700.
However, Scottish taxpayers earning less than £29,526 may pay slightly less tax due to the 19% starter rate on the first band, which is lower than the 20% basic rate in England.
Whether you pay Scottish or English rates depends on where you live, not where you work. If you live in Scotland but work in England, you pay Scottish rates. Your tax code will start with S if you pay Scottish rates.
Use our take-home pay calculator to compare your tax at any salary. We plan to add Scottish rate support soon.