Tue, 13 Jan 2026

Tue, 13 Jan 2026 Income tax changes and mansion tax on £1m homes in Scottish Budget

Finance Secretary Shona Robison unveils the government's tax and spending plans for the coming financial year.

* The Scottish government plans to change income tax thresholds as part of its Budget for 2026-27, with Finance Secretary Shona Robison saying that 55% of Scottish taxpayers will pay less income tax than people living in the rest of the UK.
* The proposals include increasing the threshold for the basic (20%) rate from £15,398 to £16,537 and the intermediate rate (21%) from £27,492 to £29,527.
* People earning more than £33,500 will pay increasingly more income tax under the new plans.
* The government aims to ensure that most Scottish taxpayers pay less income tax than they would elsewhere in the UK, but economists have raised concerns about cuts to day-to-day spending and capital budget.
* The Scottish Child Payment will increase, and a new council tax band will be introduced for homes worth more than £1m from April 2028.
* Opposition MSPs have welcomed some measures but warned that the Budget does not deliver wide-ranging reforms.
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