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.