Scotland vs rUK Tax 2025/26 - What Changes for Your Take‑Home Pay?
Updated for the 2025/26 tax year. “rUK” means England, Wales and Northern Ireland.
Key differences
- Personal Allowance is the same (£12,570) and tapers between £100k–£125,140.
- Income tax bands are different in Scotland vs rUK (rates and number of bands).
- National Insurance is UK‑wide (not devolved) - same thresholds/rates for employees.
2025/26 income tax bands
rUK (England/Wales/NI)
- Personal Allowance: £12,570 (tapered at higher incomes)
- 20% basic rate to £37,700 taxable
- 40% higher rate to £125,140
- 45% additional rate above £125,140
Scotland
- Personal Allowance: £12,570 (tapered at higher incomes)
- After PA, cumulative bands: 19% (£2,827) → 20% (£12,094) → 21% (£16,171) → 42% (£31,338) → 45% (£50,140) → 48% (Top)
NI (employee)
- Primary Threshold £12,570; Upper Earnings Limit £50,270
- 8% between thresholds; 2% above UEL
Examples
These are structure examples - use the calculator for exact figures given pensions, loans and HICBC.
| Scenario | Scotland | rUK |
|---|---|---|
| £35,000 salary, no pension, no loans | More small bands; effective rate slightly different vs rUK. | 20% basic rate below the higher threshold. |
| £60,000 salary, 5% salary‑sacrifice pension | Part of income at 42% band before Top rate kicks in. | Portion taxed at 40% in the higher band. |
Why results differ
- Scottish band steps change how much sits in each rate, so totals can differ even with the same gross salary.
- Pension salary‑sacrifice lowers taxable pay in both systems; impact varies with band edges.
Compare my take‑home (choose Scotland vs rUK)
FAQs
Do NI rates differ in Scotland?
No. Employee NI thresholds and rates are UK‑wide.
Is Personal Allowance the same?
Yes, and it still tapers above £100,000 of adjusted net income.