Scotland Income Tax 2025/26 — Rates, Bands & Comparison

Scotland has had the power to set its own income tax rates and bands since 2017. For 2025/26, Scottish taxpayers face higher rates on earnings above around £28,000 — but the same National Insurance rates as the rest of the UK.

Scottish Income Tax Bands 2025/26

Scotland uses the same personal allowance (£12,570) as the rest of the UK. NI rates are also identical.

Scotland vs England — Tax Comparison

Income tax only. NI is identical. Figures are approximate.

How Scotland's Tax Code Works

If you live in Scotland, HMRC adds an S prefix to your tax code (e.g., S1257L instead of 1257L). Your employer uses this to apply Scottish rates automatically via PAYE. If you see an S code on your payslip but don't live in Scotland, or vice versa, contact HMRC to correct it.

Scotland's 42% Higher Rate vs England's 40%

The most significant difference kicks in at the Scottish higher rate band (£43,663+), where Scotland charges 42% vs England's 40%. On earnings between £43,663 and £50,270, this 2% difference costs Scottish taxpayers roughly £125/year.

Above £50,270 (where England moves to 40%), Scotland still charges 42% — the difference widens considerably at higher incomes. On a £75,000 salary, Scotland charges 45% advanced rate while England charges 40% higher rate.

Worked Example: £40,000 Salary in Scotland

See full £40,000 Scotland breakdown →