She also confirmed a sharp rise in the lowest two income tax thresholds, with ministers insisting that it will mean more than half of Scots pay less tax than elsewhere in the UK as a result. In her final Budget before May’s Holyrood election, the Finance Secretary announced that the thresholds for Scotland’s basic and intermediate rates of income tax will rise by 7.4% in 2026-27 – more than twice the current rate of inflation. From April 2028, properties valued at more than £1 million on an updated valuation will fall into two new higher bands. The existing Council Tax bands A to H will remain unchanged for the vast majority of homeowners, but the new band I will cover properties valued between £1 million and £2 million and band J for properties valued above £2 million. The tax announcements sit alongside a £68bn spending package that ministers say prioritises the NHS, childcare and action on child poverty.

Source: The Herald January 14, 2026 03:12 UTC