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?

Scottish Budget confirms bands and rates for 2025/26

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.

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