Since 2016, the Scottish Parliament has had the power to set its own Income Tax rates and bands on earnings — meaning anyone whose main home is in Scotland pays Income Tax according to Scottish bands rather than the England/Wales/NI system. National Insurance, however, is unaffected and identical across the whole UK, since it remains controlled by Westminster.
Scotland currently uses six Income Tax bands compared to England and Wales's three, giving a more gradual progression — but with a notably higher top rate.
| Band | Taxable income (above £12,570 Personal Allowance) | Rate |
|---|---|---|
| Starter rate | £12,571 – £15,397 | 19% |
| Basic rate | £15,398 – £27,491 | 20% |
| Intermediate rate | £27,492 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
The same Personal Allowance of £12,570 applies in Scotland as the rest of the UK, including the taper for income over £100,000.
After the £12,570 Personal Allowance, £27,430 is taxable. This is spread across the Starter (19%), Basic (20%), and Intermediate (21%) bands, working out to roughly £5,747 in Scottish Income Tax. National Insurance adds £2,194 (8% on the same £27,430). Take-home pay: approximately £32,059 per year.
You're treated as a Scottish taxpayer if your main residence is in Scotland for most of the tax year — it has nothing to do with where your employer is registered or where you physically work day-to-day. If you move between Scotland and the rest of the UK partway through a tax year, HMRC determines your status based on where your main home was for the majority of the year.