New Scottish tax year: Divergence means differences continue

4 Apr 2025

The 2025/26 tax year starts this weekend (6 April), and the Chartered Institute of Taxation has republished tax tables showing how income tax for Scottish taxpayers will be different from people in other parts of the UK.

Increases to the basic and intermediate tax thresholds mean that Scottish taxpayers will pay up to £14.51 less income tax in the coming tax year than in 2024/25.

Scottish taxpayers earning more than £30,318 will pay more income tax than a taxpayer in the rest of the UK with the same earnings, up from £28,867 in 2024/25.

Conversely, the 19p starter rate of tax means that someone with earnings under £30,318 in Glasgow would pay £28.27 a year (around 54p a week) less than someone in Manchester or Cardiff.

The freezing of the UK-wide personal allowance, together with Scottish decisions to freeze the higher, advanced and top rate thresholds, means fiscal drag is likely to bring more Scottish taxpayers into these higher rates of tax as earnings rise.

Lindsay Scott, CIOT Technical Officer, said:

“December’s budget may have brought the tax increases of recent budgets to an end, but their effects remain.

“Even with a largely standstill income tax policy, the decisions of previous years mean that the Scottish income tax regime will continue to be slightly more generous to those earning less than £30,318, and increasingly less so for everyone else.

“And there will be an ever so slight reduction for all Scottish taxpayers relative to the year just ending of up to £14.51 due to the increases to the basic and intermediate thresholds.”

ENDS

^{The table below was published following the Scottish Budget announcements of 4 December 2024.}

^{The first two columns show the income tax and National Insurance liabilities for employees across a range of income levels. The third column shows the differences between Scotland and the rest of the UK in 2025/26 and the final column, the difference between Scottish liabilities in the coming year and the year just ended (2024/25).}

^{Note that while Wales has the power to set a Welsh Rate of Income Tax, it has chosen to retain parity with the rates that apply in England and Northern Ireland.}

	^2025/26	^2025/26	^Difference	^Difference
^Earnings	^{UK Income Tax}	^{Scottish Income Tax}	^{Scotland vs England 2025/26}	^{Scotland 24/25 vs Scotland 25/26}
^£	^£	^£	^£	^£

^10,000	⁰	⁰	⁰	⁰
^15,000	⁴⁸⁶	⁴⁵⁸	^28.27	^5.21
^20,000	^1,486	^1,458	^28.27	^5.21
^25,000	^2,486	^2,458	^28.27	^5.21
^30,318	^3,550	^3,550	^0.00	^14.51
^35,000	^4,486	^4,533	^-46.82	^14.51
^40,000	^5,486	^5,583	^-96.82	^14.51
^45,000	^6,486	^6,914	^-427.80	^14.51
^50,000	^7,486	^9,014	^-1,527.80	^14.51
^55,000	^9,432	^11,114	^-1,681.80	^14.51
^60,000	^11,432	^13,214	^-1,781.80	^14.51
^65,000	^13,432	^15,314	^-1,881.80	^14.51
^70,000	^15,432	^17,414	^-1,981.80	^14.51
^75,000	^17,432	^19,514	^-2,081.80	^14.51
^80,000	^19,432	^21,764	^-2,331.80	^14.51
^85,000	^21,432	^24,014	^-2,581.80	^14.51
^90,000	^23,432	^26,264	^-2,831.80	^14.51
^95,000	^25,432	^28,514	^-3,081.80	^14.51
^100,000	^27,432	^30,764	^-3,331.80	^14.51
^125,140	^42,516	^47,733	^-5,217.30	^14.51
^150,000	^53,703	^59,666	^-5,963.10	^14.51
^175,000	^64,953	^71,666	^-6,713.10	^14.51
^200,000	^76,203	^83,666	^-7,463.10	^14.51
^250,000	^98,703	^107,666	^-8,963.10	^14.51
^300,000	^121,203	^131,666	^-10,463.10	^14.51
^500,000	^211,203	^227,666	^-16,463.10	^14.51
^1,000,000	^436,203	^467,666	^-31,463.10	^14.51