Scottish Budget confirms bands and rates for 2025/26
Ahead of the Scottish Budget, there were rumours that tax hikes were on the way. However, the announcements made on the day will see some easing of tax for lower earners. What’s the full story?
On 4 December the Scottish government published its 2025 Budget, which included the proposed income tax rates for 2025/26. The good news is that the feared changes didn’t materialise. Instead there was some easing of tax for those on lower incomes. The proposed income tax rates for 2025/26 are as follows:
|
Band |
Income range |
Rate |
|
Starter rate (on income exceeding tax reliefs and allowances) |
£12,571 - £15,397 |
19% |
|
Basic rate |
£15,398 - £27,491 |
20% |
|
Intermediate rate |
£27,492 - £43,662 |
21% |
|
Higher rate |
£43,663 - £75,000 |
42% |
|
Advanced rate |
£75,001 - £125,140 |
45% |
|
Top rate |
Above £125,140 |
48% |
If the changes are approved by the Scottish Parliament, they will mean the Starter and Basic bands increase above inflation, by 22.6% and 6.6% respectively. The document also pledges that no new bands will be introduced, and no further changes to rates will be made by the current Parliament.
Related Topics
-
Founders' relief: a closer look
The Budget's new Founders' Relief sounds remarkably generous, offering a 10% capital gains tax rate on up to £10 million of gains from selling shares from April 2027. However, a closer look at the proposed qualifying conditions suggests that relatively few business owners will benefit. Why might the relief be so difficult to claim?
-
MONTHLY FOCUS: 2026 BUDGET SPECIAL
Budget 2026 contains a mixture of tax rises, new reliefs and changes to the way businesses and individuals will be taxed from 2027 onwards. Savings and property income will face higher rates, the lifetime limit for Business Asset Disposal Relief will fall, a new founders' relief is planned and several allowances and business incentives are changing. Which measures matter most, and is there anything you should do before they take effect?
-
Autumn Budget 2026 – what are the key tax announcements?
The Chancellor delivered the Autumn Budget on 28 October, announcing a mixture of tax increases, new reliefs and changes to the way tax is administered. Although the headline rates of income tax, National Insurance (NI) and VAT remain unchanged, there are some significant changes affecting business owners, landlords and private individuals. What are the main announcements?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.