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What is Scottish Income Tax?
Last verified 23 October 2026
Scottish Income Tax is the set of Income Tax rates and bands that applies if you live in Scotland. The Scottish Parliament sets them for non savings, non dividend income, which includes employment, self-employment, pensions and property income.
Why it matters to landlords
Which rates you pay depends on where you live, not where your property is. For 2026 to 2027, with the standard £12,570 Personal Allowance, the bands are: starter rate 19% (£12,571 to £16,537), basic 20% (to £29,526), intermediate 21% (to £43,662), higher 42% (to £75,000), advanced 45% (to £125,140) and top 48% above that. Savings interest and dividends are taxed at the same rates as the rest of the UK.
Because the higher rate starts at £43,663 rather than £50,271, Scottish landlords can reach 42% on rental profit sooner than landlords elsewhere. Finance Act 2026 also lets the Scottish Parliament set its own property income rates from 2027 to 2028, so check Scottish budget announcements rather than assuming the UK property rates apply.
Example
A landlord living in Edinburgh has £40,000 of salary and £10,000 of rental profit, so £50,000 in total. The slice from £43,663 to £50,000, all rental profit, is taxed at 42%. Outside Scotland it would be taxed at 20%.
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Related terms
- Income Tax bands
- Personal Allowance
- Property income rates
- Land and Buildings Transaction Tax (LBTT)
- Scottish landlord register