As a result of the plans agreed by MSPs in February, the level of income at which Scottish taxpayers begin to pay more income tax than someone with equivalent earnings in the rest of the UK will increase from £30,318 to £33,493.

The Scottish starter rate of 19p means Scots with earnings under £33,493 will pay up to £39.67 less income tax than someone in the rest of the UK, while increases to the basic and intermediate rate thresholds will result in a maximum tax saving of £31.75, or around 61p per week, relative to the tax year that is about to end.

The differences between Scottish and UK income tax liabilities in the coming tax year (2026/27), and the difference in Scottish income tax liabilities between 2025/26 and 2026/27 are illustrated in the table below.

Across the UK, a range of important tax changes will be taking effect, impacting millions of taxpayers across Scotland and the rest of the UK. This includes the roll-out of Making Tax Digital for Income Tax for the self employed and landlords with gross annual trading and/or rental income of more than £50,000. The CIOT has produced a summary of these changes, which can be read here.

Ellen Milner, CIOT director of Public Policy, said: “Compared with recent years, the income tax changes taking effect are relatively modest and have been largely driven by the outgoing government’s commitment to leave existing income tax rates and bands untouched this side of the May election.

“The changes that have been implemented will mean that, across the income scale, Scottish taxpayers will be paying a little less income tax relative to the year just ended.

“But at £31.75, the maximum saving per week will be around 61p, not even enough for a can of Irn Bru.

“Taxpayers may see their own tax liabilities increase as wages grow and tax thresholds higher up the income scale remain frozen. For some people, this could push them into higher rates of tax.”