If you earn a salary of £110,000 in 2026-27 and have no other income, you are entitled to a reduced personal allowance of £7,570 because your income exceeds £100,000. Your taxable income is therefore £102,430.

If you are a resident in Scotland, your income tax breaks down is as follows:

  • Starter rate – £3,967 at 19% = £753.73

  • Scottish basic rate – £12,989 at 20% = £2,597.80

  • Intermediate rate – £14,136 at 21% = £2,968.56

  • Scottish higher rate – £31,338 at 42% = £13,161.96

  • Scottish advanced rate – £40,000 at 45% = £18,000.00

  • Total tax = £37,482.05

  • National insurance – £37,700 at 8% + £59,730 at 2% = £4,210.60

  • Take home pay – £68,307.35

This is a reduction in income tax of £31.75 compared to 2025-26 due to the increases to the starter rate and basic rate bands.

Although the highest headline rate at this income level is the advanced rate of 45%, the marginal rate of income tax for incomes between £100,000 and £125,140 is 67.5% (69.5% including national insurance) due to the effects of the tapering of the personal allowance.

If you are a resident elsewhere in the UK, on this salary you will pay £33,432.00 in tax – £4,050.05 less than north of the border.