Are RSUs taxed at Scottish rates?

Yes, RSU vests are earned income, so a Scottish taxpayer pays Scottish income tax rates on them, up to 48% for 2026/27. NI and CGT remain UK-wide.

What is the Scottish top rate of income tax for 2026/27?

48%, applied to income above £125,140. The advanced rate of 45% applies from £75,000 to £125,140.

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RSU & equity

RSUs for Scottish Taxpayers

6 min read. Last verified 23 June 2026. 2026/27 rules.

The short answer

If your main home is in Scotland, your RSU vests are taxed at Scottish income tax rates (up to 48% for 2026/27), but National Insurance and Capital Gains Tax stay UK-wide. The personal allowance taper over £100,000 still applies.

Key facts

Scottish income tax has six bands for 2026/27: 19%, 20%, 21%, 42%, 45% and 48%.
The top rate of 48% applies to income above £125,140.
National Insurance is the same across the UK (8% then 2% for employees).
Capital Gains Tax uses UK rates (18%/24% on shares), not Scottish rates.

Where you live changes the income tax on your RSUs, but not everything. Scotland sets its own income tax bands and rates for earned income, which includes RSU vests. National Insurance and Capital Gains Tax are reserved to the UK and do not change.

What rate will my vest be taxed at?

Scotland has six bands. A vest stacks on top of your salary, so it is taxed at your highest Scottish rate. For higher earners that is the 42% higher rate, the 45% advanced rate, or the 48% top rate above £125,140.

Does the £100,000 trap still apply in Scotland?

Yes. The personal allowance is a UK-wide rule and tapers away between £100,000 and £125,140 wherever you live. Combined with Scottish rates, the effective rate on a vest in that band is even higher than in the rest of the UK.

What about selling the shares?

Capital Gains Tax on a later sale uses the UK rates and the UK £3,000 allowance, regardless of Scottish residency. Only the income tax at vest follows the Scottish bands.

Common questions

Are RSUs taxed at Scottish rates?: Yes, RSU vests are earned income, so a Scottish taxpayer pays Scottish income tax rates on them, up to 48% for 2026/27. NI and CGT remain UK-wide.
What is the Scottish top rate of income tax for 2026/27?: 48%, applied to income above £125,140. The advanced rate of 45% applies from £75,000 to £125,140.

Related playbooks

Sources

gov.scot: Scottish Income Tax 2026 to 2027 rates and bands

Figures verified against gov.uk and gov.scot on 30 June 2026. Constants version 2026/27.3. 2026/27 tax year. This is a modelling tool for general insight, not financial or tax advice.