Income tax changes and mansion tax on £1m homes in Scottish Budget
Summary
The Scottish government plans to change income tax rates as part of its 2026-27 Budget. It also introduces a new tax on homes valued over £1 million and plans to raise support for families with young children. The Budget proposals aim to ease financial pressure on families and improve results for local councils through increased revenue measures.Key Facts
- The Scottish government plans to change the income tax thresholds for 2026-27.
- 55% of Scottish taxpayers are expected to pay less income tax compared to those in the rest of the UK.
- A new tax will apply to homes valued over £1 million starting in April 2028, with the aim of increasing fairness and council revenue.
- The basic income tax rate threshold will increase to £16,537, and the intermediate rate will start at £29,527.
- The higher tax rates will remain unchanged, impacting higher earners.
- The Scottish Child Payment will increase to £40 per week for families with infants starting from 2027-28.
- There will be a 15% business rates relief for certain sectors, contributing £138 million over three years.
- Plans include infrastructure investments and expanded school clubs by August 2027.
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