Scottish Tax Calculator 2026-27

If you live in Scotland, you pay Scottish income tax on your earned income — your wages, self-employed profits, pension, and most other taxable income. Savings interest and dividends are taxed at UK rates instead.

For the 2026-27 tax year, the Scottish Parliament has set six tax bands above the £12,570 tax-free Personal Allowance. Two changes for 2026-27 are worth understanding.

First, the Basic and Intermediate thresholds rose by 7.4% — well above inflation — which is a genuine tax cut for lower and middle earners. According to the Scottish Government, around 55% of taxpayers will pay less Scottish income tax this year than they would in the rest of the UK.

Second, the Higher, Advanced and Top rate thresholds remain frozen, which means fiscal drag continues at the upper end — more people will be pulled into higher bands by wage growth.

The 50% squeeze

The Scottish Higher rate starts at £43,663. The NI Upper Earnings Limit, where the rate falls from 8% to 2%, isn't until £50,270. Between those two thresholds, a Scottish taxpayer pays 42% income tax plus 8% NI on every marginal pound — a 50% effective rate, against 28% (20% income tax + 8% NI) for an rUK taxpayer at the same gross.

The 67% trap

The UK Personal Allowance is withdrawn by £1 for every £2 of income above £100,000, vanishing at £125,140. Combined with the Scottish 45% Advanced rate and 2% NI, the effective marginal rate in this band reaches 67% — higher than any of the headline rates on the table.