There are no changes to the Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%) and Top (48%) rates of income tax that apply to the relevant income of Scottish taxpayers for 2025/26.
From 6 April 2025, the Basic and Intermediate thresholds (i.e., the income levels at which those rates come into effect) will each increase by 3.5 percent, which will result in more of Scottish taxpayers’ relevant income being taxed at the lower Starter and Basic rates. The Higher, Advanced, and Top rate thresholds will remain unchanged.
| Scottish Tax bandwidths and rates – effective date 6th April 2025 | ||
| Starter | £1 – £2,827 | 19% |
| Basic | £2,828 – £14,921 | 20% |
| Intermediate | £14,922 – £31,092 | 21% |
| Higher | £31,093 – £62,430 | 42% |
| Advanced | £62,431 – £125,140 | 45% |
| Top | Above £125,140 | 48% |
Under the UK Government’s Personal Allowance policy, those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
The UK Government confirmed in the 2024 Autumn Statement that the UK-wide Personal Allowance will remain frozen at £12,750.