2026 to 2027 Scottish Income Tax rates and bands added

The Cabinet Secretary for Finance set out proposed Scottish Income Tax rates and bands for 2026 to 2027 at the Scottish Budget on 13 January 2026, according to the Scottish Government factsheet published on 14 January 2026¹. The rates and bands are proposed, not final: the Scottish Parliament must pass a Scottish Rate Resolution before they take effect².

The proposed bands, based on the UK Personal Allowance of £12,570 confirmed by the UK Government in the 2025 Autumn Statement, are¹:

The rates are unchanged from 2024 to 2025, when the starter band ran from £12,571 to £14,876, the basic band from £14,877 to £26,561 and the intermediate band from £26,562 to £43,662³. The starter, basic and intermediate bands are therefore wider in the 2026 to 2027 proposal, while the higher, advanced and top bands are unchanged¹. The Scottish Government states that those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000¹. GOV.UK states that you do not get a Personal Allowance if you earn over £125,140⁴.

The Scottish Rate Resolution is the parliamentary mechanism for setting the rates and bands, under section 80C of the Scotland Act 1998 as amended by the 2016 Act, which devolved power to the Scottish Parliament to set the rates and bands of Income Tax payable by Scottish taxpayers on their non-savings and non-dividend income². The draft motion states:

Scottish Income Tax applies to wages, pension and most other taxable income for people who live in Scotland, and is paid to the Scottish Government; dividends and savings interest are taxed at the same rates as the rest of the UK⁴. Scottish taxpayers have an "S" at the beginning of their tax code⁵. Receipts are collected by HMRC and paid to the Scottish Government via HM Treasury⁵.

Which? reports the same 2026-27 Scottish bands, but describes the top rate as 47% in its list of rates and gives the intermediate band for 2026-27 as "£16,537" in its table, both of which differ from the Scottish Government and GOV.UK figures of 48% and £29,527 to £43,662⁶. Which? also reports that income tax thresholds are due to remain the same until the 2031-32 tax year, a freeze extended in the 2025 Autumn Statement⁶.

Why it matters for households

People who live in Scotland and pay Scottish Income Tax on wages, pensions and most other taxable income are affected from the 2026 to 2027 tax year, if the Scottish Parliament passes the resolution². The rates themselves are unchanged, so the change for most Scottish taxpayers comes from where the starter, basic and intermediate bands end: the starter band runs to £16,537 rather than £14,876, the basic band to £29,526 rather than £26,561, and the intermediate band starts at £29,527 rather than £26,562¹. The higher, advanced and top bands are unchanged¹. The UK Personal Allowance remains £12,570, and it is reduced by £1 for every £2 earned over £100,000, so it is fully withdrawn at £125,140¹. Scottish rates do not apply to savings interest or dividends, which are taxed at the same rates as the rest of the UK⁴. The rates and bands for each financial year since 2016 to 2017 are published⁵.

What happens next

The motion for the Scottish Rate Resolution must be moved and agreed to before the start of the tax year to which it refers, and cannot be amended, although a further motion can be lodged in its place before the start of the tax year². Standing Orders require the motion to be moved and passed before the commencement of Stage 3 proceedings for the Budget Bill². The factsheet was updated on 13 January 2026 to add the 2026 to 2027 rates and bands¹.