Income Tax in Scotland

If you live in Scotland, Scottish Income Tax rates apply to your wages, pension and most other taxable income. Scotland has its own Income Tax rates and bands for Scottish taxpayers. Income Tax is administered by HM Revenue and Customs (HMRC), with the Scottish Government responsible for setting the Scottish Income Tax rates and bands within its devolved powers.

Who pays Scottish Income Tax?

You pay Scottish Income Tax if you are a Scottish taxpayer. Your main home and where you live are important in determining whether you are a Scottish taxpayer. Special rules apply if you have more than one home or move to or from Scotland during a tax year. If you are unsure whether you are a Scottish taxpayer, check the current HMRC guidance.

Scottish Income Tax rates for 2026–27

The standard Personal Allowance is £12,570. The following Scottish Income Tax rates apply for the 2026–27 tax year:

Taxable income	Scottish Income Tax Rate
Up to £12,570	0%
£12,571–£16,537	19%
£16,538–£29,526	20%
£29,527–£43,662	21%
£43,663–£75,000	42%
£75,001–£125,140	45%
Over £125,140	48%

These figures assume the standard Personal Allowance. If your adjusted net income is above £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000 and is withdrawn completely at £125,140.

Savings and dividends

You pay the same UK-wide tax as the rest of the UK on dividends and savings interest. Scottish Income Tax rates do not apply to these types of income in the same way as they apply to wages, pensions and other non-savings, non-dividend income.

PAYE and Scottish tax codes

If you are an employee, Income Tax is normally deducted from your salary through PAYE.

A Scottish tax code normally begins with an S.

If you are an international researcher

If you are moving to Scotland from another country, your tax position may depend on:

-your UK tax residence;

-the type of income you receive;

-whether you continue to receive income from overseas; and

-whether a double taxation agreement applies.

If you receive a fellowship, scholarship or research grant, check how the payment has been classified before assuming that it is taxable or tax-free.

National Insurance

National Insurance is separate from Income Tax and follows UK-wide rules.