Scottish income tax bands for 2026/27
You’re a Scottish taxpayer if your main home is in Scotland. These bands apply to your wages, pension, self-employed and rental profits:
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
The Personal Allowance is reduced by £1 for every £2 of income over £100,000. Savings interest and dividends are taxed at UK rates, not Scottish ones.
Key dates
- 5 October: register for Self Assessment if you started self-employment or letting in the last tax year
- 31 October: paper returns
- 31 January: online returns, and payment of any tax due plus your first payment on account
- 31 July: second payment on account
Payments on account are advance payments towards next year’s bill, each half of this year’s bill. They apply if your bill is over £1,000, unless most of your tax is already taken off at source.
Penalties
Missing the 31 January deadline costs £100 straight away, even if you owe no tax. After three months, daily penalties start, with more at six and twelve months. Interest is charged on late tax.
Common mistakes
- Leaving out income such as bank interest, a small side business or rent from a spare room
- Forgetting allowable costs, including a share of your home costs if you work from home
- Not claiming pension contributions or Gift Aid, which can reduce higher-rate tax
- Wrong figures for payments on account, leading to a surprise bill in July
- Leaving it to January, when HMRC’s phone lines are at their busiest
Common questions
Am I a Scottish taxpayer?
If your main home is in Scotland, yes. Where your employer or business is based doesn’t matter.
Are dividends taxed at Scottish rates?
No. Dividends and savings interest are taxed at UK rates, even for Scottish taxpayers.
What happens if I miss the 31 January deadline?
There’s an immediate £100 penalty, with daily penalties after three months and more after six and twelve months, plus interest on any late tax.
This guide is general information, correct as of November 2026. Rules change and every situation is different, so speak to us before acting on it.