Scottish vs English Income Tax 2026/27: Rates and Examples

On a £75,000 salary in 2026/27, annual Income Tax is about £19,482 in Scotland and £17,432 in England: roughly £2,050 more in Scotland.

For someone receiving the standard Personal Allowance with salary as their only income, Scottish Income Tax is slightly lower above £12,570 and below approximately £33,493. At £33,493 the two calculations are equal to the penny; above that point, the Scottish calculation is higher.

Scope: This is an annual Income Tax comparison for employment salary from 6 April 2026 to 5 April 2027. It excludes National Insurance, pension contributions, Student Loan deductions, benefits in kind and other income. Actual PAYE deductions depend on your tax code, pay pattern and circumstances.

Compare your salary with the Scottish tax calculator

Quick answer

The crossover is not a separate statutory threshold. It is the point where the small saving created by Scotland's 19% starter band has been offset by the 21% intermediate band.

Scottish and English Income Tax bands for 2026/27

Scotland has six rates for non-savings, non-dividend income. England has three main rates. The ranges below come from the current policy data used by the Scottish calculator and assume the standard £12,570 Personal Allowance.

The Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and is nil at £125,140 or more. That taper is included in the worked examples.

Scottish rates apply to wages, pensions and most other taxable non-savings, non-dividend income. Savings interest and dividends use UK-wide rates, even for Scottish taxpayers.

Worked salary examples

These figures compare annual Income Tax only and round the displayed totals to the nearest pound. They use salary as the person's only income, the standard Personal Allowance where available, and no deductions or reliefs.

National Insurance is excluded because Class 1 employee rates are UK-wide. It still affects take-home pay, as can pension method, Student Loan plan, taxable benefits and an adjusted tax code.

Enter another salary in the Scottish tax calculator

How the crossover is reproduced

At £29,526 gross income, the Scottish calculation is £39.67 lower:

• Scotland: £3,967 at 19% plus £12,989 at 20% = £3,351.53
• England: £16,956 at 20% = £3,391.20

From the next pound, Scotland charges 21% while England remains at 20%. The one-percentage-point difference takes £3,967 of further income to offset £39.67:

£29,526 + £3,967 = £33,493

At £33,492, Scotland is one penny lower. At £33,493, both annual Income Tax calculations are £4,184.60. At £33,494, Scotland is one penny higher.

Independent workings for £75,000 and £150,000

The table is rendered from the same current policy model as the Scottish calculator. Separate fixtures pin its outputs to hand-worked calculations from the published band widths rather than treating calculator output as proof of itself.

£75,000 salary

The standard Personal Allowance leaves £62,430 taxable.

• Scotland: £3,967 × 19% + £12,989 × 20% + £14,136 × 21% + £31,338 × 42% = £19,482.05
• England: £37,700 × 20% + £24,730 × 40% = £17,432.00
• Difference: £2,050.05 more in Scotland

£150,000 salary

The Personal Allowance is nil at this income under the stated assumptions.

• Scotland: £3,967 × 19% + £12,989 × 20% + £14,136 × 21% + £31,338 × 42% + £62,710 × 45% + £24,860 × 48% = £59,634.35
• England: £37,700 × 20% + £87,440 × 40% + £24,860 × 45% = £53,703.00
• Difference: £5,931.35 more in Scotland

These are annual liabilities under the stated assumptions, not a promise of an exact payslip deduction.

What can change your result

Pension contributions

The effect depends on how the pension is arranged. Net pay, relief at source and salary sacrifice do not all change payroll tax and National Insurance in the same way. Under relief at source, the provider normally adds 20%; Scottish taxpayers may need to claim additional relief on income taxed at 21%, 42%, 45% or 48%. Salary sacrifice requires an agreement that changes contractual cash pay.

This comparison therefore does not apply a generic marginal-rate saving to a pension contribution. Check GOV.UK pension tax-relief guidance and your scheme method before modelling the effect.

Bonuses

A cash bonus counts as earnings and is added to other pay for PAYE Income Tax and Class 1 National Insurance. Its effect depends on total income and the bands it crosses; there is no separate universal "bonus tax" rate. A particular payslip deduction can also differ from the final annual position.

See GOV.UK guidance on cash bonuses.

Moving to or from Scotland

Scottish taxpayer status applies for the whole tax year, not only the part after a move. GOV.UK says a person moving to Scotland pays Scottish Income Tax if they live there for longer than anywhere else in the UK during that tax year. If HMRC changes the rate, it is backdated to the start of the tax year and PAYE is adjusted.

Tell HMRC when your address changes and use its moving to or from Scotland guidance. Housing costs, council tax and other relocation factors are outside this Income Tax comparison.

Who pays Scottish Income Tax?

For most people, the deciding factor is where they live, not where their employer is based. If you have more than one home or move during the year, the detailed residence and day-count rules can matter.

If you are employed or receive a pension under PAYE, a Scottish tax code usually starts with S, such as S1257L for the standard Personal Allowance. Check your code and address through HMRC if the prefix looks wrong.

Read GOV.UK's Scottish taxpayer guidance

Sources and checking path

Rates and assumptions were checked on 24 August 2026 against:

• Scottish Government: Scottish Income Tax rates and bands for 2026/27
• Scottish Government: 2026/27 technical factsheet
• GOV.UK: Income Tax rates and allowances for current and previous tax years
• HMRC: employer PAYE rates and thresholds for 2026/27
• GOV.UK: Scottish Income Tax and who pays it

For a personal estimate, use the Scottish tax calculator, then compare the assumptions with your tax code and payslip. For an official current-year estimate, GOV.UK also provides an Income Tax estimator.

Last checked: 24 August 2026 | Tax year: 2026/27

Frequently Asked Questions

Do Scottish rates apply to dividends or savings?

No. Scottish rates apply to non-savings, non-dividend income. Savings interest and dividends use UK-wide rates and allowances.

What happens if I move during the tax year?

Scottish taxpayer status applies for the whole tax year. If you move to Scotland and live there longer than anywhere else in the UK during that year, GOV.UK says Scottish Income Tax applies and HMRC backdates the rate to the start of the tax year.

Does this comparison include pension contributions or bonuses?

No. The table compares salary-only annual Income Tax. Pension method can change taxable pay or how relief is given, while a cash bonus is added to earnings and can cross several tax bands.

How do I check my own Scottish versus English difference?

Use the Scottish tax calculator linked above, enter annual salary, and review its stated assumptions. Your actual PAYE deductions can differ because of tax code, pay frequency, other income, deductions or reliefs.