The Scottish Budget 2026

The Scottish Government has announced a very small income tax “cut” from April 2026 by nudging up two tax thresholds.

The headline:
Sorry… it’s not the tax break you were probably hoping for 😬

What’s actually happening?

• The basic and intermediate rate thresholds are increasing slightly

• The maximum saving is £31.75 a year (that’s about 61p a week)

• Many people will see much less or nothing at all

Why doesn’t it feel like a tax cut

• Most other tax thresholds are frozen

• With inflation still ticking along, that means more of your pay gets taxed anyway

• So in real terms, most people aren’t better off

Who benefits most?

• Despite the headlines, higher earners get most of the (tiny) benefit

• Lower earners often see little or no change

Bottom line
This isn’t really a giveaway; it’s more like taking the sting out of a quiet tax rise. Scotland’s wider approach stays the same: average earners pay roughly similar tax to the rest of the UK, while higher earners continue to pay more.