Since 2017, Scotland has set its own income tax rates and bands, separate from the rest of the UK. The result is a system where Scots pay noticeably different amounts to people earning the same salary in England. Here's exactly who pays more, who pays less, and by how much in 2025/26.
The headline: it depends on your income
The common belief that "Scots pay more tax" is only partly true. Lower earners in Scotland actually pay slightly less than their English counterparts, thanks to a 19% starter rate. The crossover happens around £28,000 — above that, Scots progressively pay more.
The two systems side by side
England, Wales and Northern Ireland use three bands above the personal allowance: 20%, 40% and 45%. Scotland uses six:
| Scottish band | Rate | England equivalent |
|---|---|---|
| Starter | 19% | 20% (basic) |
| Basic | 20% | 20% (basic) |
| Intermediate | 21% | 20% (basic) |
| Higher | 42% | 40% (higher) |
| Advanced | 45% | 40% (higher) |
| Top | 48% | 45% (additional) |
Comparing real salaries
Here's roughly how much more (or less) income tax a Scottish taxpayer pays compared to someone in England at the same salary in 2025/26:
| Salary | Difference (Scotland vs England) |
|---|---|
| £20,000 | Scotland pays slightly less |
| £30,000 | Roughly the same |
| £50,000 | Scotland pays a few hundred pounds more |
| £75,000 | Scotland pays well over £1,500 more |
| £100,000+ | Scotland pays several thousand pounds more |
Why the £43,662 point matters in Scotland
In Scotland, the higher 42% rate begins at £43,662 — significantly lower than England's £50,270 higher-rate threshold. This means Scottish taxpayers start paying higher-rate tax on a chunk of income that an English taxpayer would still be paying just 20% on. This single difference accounts for most of the divergence for middle earners.
What stays the same
Several things are identical across the UK because they're controlled by the UK government rather than the Scottish Parliament:
- The personal allowance (£12,570)
- National Insurance rates and thresholds
- Tax on savings interest and dividends
- Capital gains tax
Only tax on earned income (salaries, self-employment) follows the Scottish bands.
The takeaway
If you earn under about £28,000, living in Scotland means a marginally smaller tax bill. Above that, you pay progressively more, with the difference becoming substantial for higher earners. If you're comparing job offers in different parts of the UK, or considering a move, the take-home difference is worth calculating precisely. Our income tax calculator lets you switch between regions instantly to compare.
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This article is for general information only and does not constitute financial, tax or legal advice. Tax rules and rates can change, and your personal circumstances affect how they apply to you. Always consult a qualified professional before making financial decisions. Figures are based on 2025/26 rates.