The devolved government of Scotland on 13 January 2026 presented their budget for 2026/27 to the Scottish Parliament.
Cabinet Secretary for Finance Shona Robinson set out plans in the budget to change the income tax thresholds for Scottish taxpayers, raising the basic and intermediate tax thresholds by 7.4%, claiming that the proposal could mean that 55% of Scottish taxpayers would pay less income tax than people living in the rest of the UK.
The proposed rates of income tax for Scottish taxpayers for the 2026/27 fiscal year are as follows:
*Assumes individuals are in receipt of the standard personal allowance.
**Those earning more than GBP 100,000 will see their personal allowance reduced by GBP 1 for every GBP 2 earned over GBP100,000.
The rates and bands in the table above are based on the UK personal allowance, which is GBP 12,570, as confirmed by the UK government in the 2025 Autumn Statement.
Stuart Strong
BDO in United Kingdom
Cabinet Secretary for Finance Shona Robinson set out plans in the budget to change the income tax thresholds for Scottish taxpayers, raising the basic and intermediate tax thresholds by 7.4%, claiming that the proposal could mean that 55% of Scottish taxpayers would pay less income tax than people living in the rest of the UK.
The proposed rates of income tax for Scottish taxpayers for the 2026/27 fiscal year are as follows:
| Proposed Bands | Band name | Rate (%) |
| £12,571*- £16,537 | Starter | 19 |
| £16,538 - £29,526 | Basic | 20 |
| £29,527 - £43,662 | Intermediate | 21 |
| £43,663 - £75,000 | Higher | 42 |
| £75,001 - £125,140** | Advanced | 45 |
| Over £125,140 | Top | 48 |
*Assumes individuals are in receipt of the standard personal allowance.
**Those earning more than GBP 100,000 will see their personal allowance reduced by GBP 1 for every GBP 2 earned over GBP100,000.
The rates and bands in the table above are based on the UK personal allowance, which is GBP 12,570, as confirmed by the UK government in the 2025 Autumn Statement.
Stuart Strong
BDO in United Kingdom