SPICe publishes Scottish Budget 2025-26 taxes infographic

The Scottish Parliament published an infographic on 5 December 2024 setting out the Scottish Fiscal Commission's forecasts for Scottish taxes in 2025-26 and comparing Scottish and rest of the UK (rUK) income tax and residential property tax bands¹. The Scottish Government's factsheet on Scottish Income Tax for 2025 to 2026 was published on 4 December 2024, the day of the Scottish Budget, when the Cabinet Secretary for Finance set out the proposed rates and bands².

The Scottish Fiscal Commission forecasts Scottish tax revenue of £24,588m in 2025-26, made up of £20,477m from non-savings, non-dividend (NSND) Income Tax, £3,052m from Non-Domestic Rates, £1,019m from Land and Buildings Transaction Tax (LBTT) and £40m from Scottish Landfill Tax¹. The Scottish Government factsheet states that the Scottish Fiscal Commission has forecast that Income Tax will raise just under £20.5 billion in 2025-26 in Scotland².

The Scottish Government said the Starter rate band will increase by 22.6% and the Basic rate band by 6.6%, increasing the thresholds for paying both the Basic and Intermediate rates by 3.5%². It said this increase is significantly above inflation, which is 1.7% based on the Consumer Price Index from September 2024, and that the Higher, Advanced and Top rate thresholds will be frozen at their current levels in cash terms to the end of this Parliament (2026-27)². The UK-wide Personal Allowance remains frozen at £12,570, confirmed by the UK Government in the 2024 Autumn Statement².

Source: Scottish Government, Scottish Income Tax 2025 to 2026: factsheet²; Scottish Income Tax: rates and bands³. The Personal Allowance is £12,570 at 0% and is reserved¹. Those earning more than £100,000 see their Personal Allowance reduced by £1 for every £2 earned over £100,000².

For rUK, the infographic gives a Basic rate of 20% from £12,571 to £50,270, a Higher rate of 40% from £50,271 to £125,140 and an Additional rate of 45% over £125,140¹. On residential property, LBTT in Scotland runs at 0% up to £145,000, 2% from £145,001 to £250,000, 5% from £250,001 to £325,000, 10% from £325,001 to £750,000 and 12% over £750,000¹. Stamp Duty Land Tax in rUK runs at 0% up to £125,000, 2% from £125,001 to £250,000 and 5% from £250,001 to £925,000, with higher rates above that¹.

Why it matters for households

The Scottish Government estimates that over 34% of Scottish adults, over 1.6 million out of 4.65 million, are not affected by the 2025-26 policy changes because their income is below the UK-wide Personal Allowance of £12,570². It says those earning less than around £30,300, around 51% of Scottish taxpayers, will continue to pay slightly less Income Tax in 2025-26 than if they lived elsewhere in the UK, and that no taxpayer will pay more Scottish Income Tax in 2025-26 than in 2024-25 on their current income².

On take-home pay, the factsheet gives a median income example of £29,800, where it says taxpayers will be £5 better off than if they lived elsewhere in the UK and £15 better off in 2025-26 than in 2024-25². At £50,000 it gives a position of £1,528 worse off relative to the rest of the UK in 2025-26, and at £80,000 £2,332 worse off, while still £15 better off than in 2024-25². It says almost half (47%) of Scottish households are better off, with over three-quarters (76%) either better off or unaffected, and that around 62% of households in Scotland are better off or unaffected under the Scottish tax and social security system compared to the rest of the UK².

What happens next

The rates and bands for 2025 to 2026 are described as proposed, set out at the Scottish Budget on 4 December 2024³. The gov.scot rates and bands page records that 2026 to 2027 rates and bands were added on 13 January 2026³. No further dates for the 2025-26 proposals are given in the published material.