If you live in Scotland you pay Scottish Income Tax, set by the Scottish Parliament. It uses six bands instead of three. Lower earners pay a little less than in England, and from roughly £35,000 upward Scottish taxpayers pay more. National Insurance is identical across the UK.
Take-home pay compared
| Salary | England, Wales & NI | Scotland | Scotland vs England |
|---|---|---|---|
| £25,000 | £21,520 | £21,559 | +£40 |
| £35,000 | £28,720 | £28,705 | −£15 |
| £45,000 | £35,920 | £35,524 | −£396 |
| £60,000 | £45,357 | £43,607 | −£1,750 |
| £80,000 | £56,957 | £54,657 | −£2,300 |
| £100,000 | £68,557 | £65,257 | −£3,300 |
| £150,000 | £91,286 | £85,355 | −£5,931 |
Why the difference
Scotland’s 19% starter rate makes the first slice of taxable income cheaper. But the 21% intermediate rate starts at £29,527, the 42% higher rate at £43,663 (England: 40% from £50,271), and there is a 45% advanced rate from £75,001 and 48% top rate above £125,140.
Try both in the calculator: switch “Where you live” between England and Scotland.
Frequently asked questions
Do I pay Scottish tax if I work in England but live in Scotland?
Yes. Scottish Income Tax depends on where you live (your main home), not where you work. Your tax code will start with “S”.
Is National Insurance different in Scotland?
No. Employee NI is 8% between £12,570 and £50,270 and 2% above, everywhere in the UK.
Do savings and dividends use Scottish rates?
No. Scottish rates apply to earnings, pensions and rental income. Savings and dividend income use UK rates.
