Six bands against three
If you live in Scotland, income tax on your wages goes to the Scottish Government and uses Scottish bands and rates (GOV.UK). The Personal Allowance, its taper above £100,000, National Insurance and student loans are UK-wide and the same everywhere.
| Income | Rate |
|---|---|
| £12,571 – £16,537 | 19% |
| £16,538 – £29,526 | 20% |
| £29,527 – £43,662 | 21% |
| £43,663 – £75,000 | 42% |
| £75,001 – £137,710 | 45% |
| over £137,710 | 48% |
| Income | Rate |
|---|---|
| £12,571 – £50,270 | 20% |
| £50,271 – £137,710 | 40% |
| over £137,710 | 45% |
Take-home, salary by salary
| Salary | England | Scotland | Difference |
|---|---|---|---|
| £25,000 | £21,520 | £21,559 | £40 |
| £30,000 | £25,120 | £25,155 | £35 |
| £40,000 | £32,320 | £32,255 | -£65 |
| £50,000 | £39,520 | £38,024 | -£1,496 |
| £75,000 | £54,057 | £52,007 | -£2,050 |
| £100,000 | £68,557 | £65,257 | -£3,300 |
| £150,000 | £91,286 | £85,355 | -£5,931 |
Below roughly £30,000 the 19% starter rate gives Scottish taxpayers slightly more. Above it, the 21% intermediate rate and then the 42% higher rate, which starts at £43,663 rather than £50,271, mean Scottish taxpayers keep less.
A worked example
On £50,000 the taxable income after the Personal Allowance is £37,430 in both countries. In Scotland it is taxed as £3,967 at 19%, £12,989 at 20%, £14,136 at 21%, £6,338 at 42%: £8,982 in all. In England it is £7,486.
National Insurance is the same £2,994 in both. The Scottish taxpayer takes home £38,024, the English one £39,520: £1,496 a year, or £125 a month.
Why the gap is biggest around £50,000
Between £43,663 and £50,270, a Scottish taxpayer pays 42% income tax plus 8% National Insurance, because the NI upper earnings limit is set for the whole UK at £50,270. In England the same slice is taxed at 20% plus 8%. That band of income is where Scotland's marginal rate is highest compared with the rest of the UK.
Questions people ask
Who counts as a Scottish taxpayer?
Broadly, people whose main home is in Scotland. Where you work doesn't decide it. Your tax code starts with S.
Are pensions relieved differently in Scotland?
Salary sacrifice and net pay arrangements work the same way. With relief at source, higher-rate Scottish taxpayers claim the extra relief through a tax return; this calculator does not add that claim.
Is National Insurance different in Scotland?
No. NI is set for the whole UK.
How much more does a Scottish taxpayer pay on £100,000?
£3,300 a year: £65,257 take-home in Scotland against £68,557 in England, before any pension contribution.