UK tax codes · 2026/27 tax year

D1 tax code: what it means

D1 means all your pay from that job or pension is taxed at the additional rate of 45%, with no tax-free amount. It is used when your other income already takes you over £125,140, so every extra pound falls in the top band. A second income of £25,000 on D1 costs £11,250 in tax, compared with £10,000 on D0.

Tax code rules checked against GOV.UK and HMRC's PAYE Manual on 25 September 2026.

Tax-free pay

£0

at this job

Rate

45%

42% on SD1 in Scotland

Additional rate from

£125,140

of total income

Tax on £25,000

£11,250

on D1

D1 compared with D0, SD1 and 1257L

Tax a year if this pay is taxed under each code in 2026/27.

Pay from this job	D1 (45%)	D0 (40%)	SD1 (42%, Scotland)	1257L
£25,000	£11,250	£10,000	£10,500	£2,486
£40,000	£18,000	£16,000	£16,800	£5,486
£60,000	£27,000	£24,000	£25,200	£11,432

Who gets D1

People with high income from one source, such as a salary or pension over £125,140, and more employment or pension income elsewhere. At that level the Personal Allowance has gone completely, so every pound from the second source is taxed at 45%.

D1 in Scotland and Wales

SD1 is not the Scottish top rate: HMRC's manual says it charges the Scottish higher rate, 42% for 2026/27. The Scottish advanced rate (45%) is SD2 and the top rate (48%) is SD3. CD1 in Wales charges the Welsh additional rate, 45%.

How it is applied

HMRC's manual says D1 can be issued cumulatively or on a week 1 / month 1 basis, and its system defaults to week 1 / month 1. On that basis each payment is taxed on its own and no refunds are given in the year.

If your main income falls

D1 assumes your other income stays above £125,140. If it falls, for example after leaving a high-paid job, the second source is over-taxed until HMRC updates the code, so tell HMRC through your personal tax account or the HMRC app.

If you think this code is wrong

If your total income is under £125,140, D1 is taking too much; D0 or BR would normally apply instead. Sign in to HMRC's Check your Income Tax service (gov.uk/check-income-tax-current-year) and check your jobs, pensions, benefits and expenses. HMRC then tells you and your employer any new code within 15 working days; it should show on your next or following payslip if you are paid monthly, or your third if weekly. If you cannot go online, call the Income Tax helpline on 0300 200 3300 (Monday to Friday, 8am to 6pm). After starting a new job, wait 35 days before calling.

Guides and definitions

High Income Child Benefit Charge: how it is worked out and cut (Guide)
How to read your payslip: every line explained, with an example (Guide)
Emergency tax: how it works and how to get your money back (Guide)
Emergency tax code (An emergency tax code, marked W1, M1 or X, taxes each payday on its own, as if you were paid that amount every period of the year.)
P11D (A P11D is the form UK employers send HMRC by 6 July to report each employee's taxable benefits and expenses that were not taxed through payroll.)
P60 (A P60 is the yearly summary of your pay and tax from one employer, due by 31 May if you work there on 5 April.)
Personal Allowance (The Personal Allowance is the income you can earn each UK tax year before Income Tax starts: £12,570 for 2026/27.)
Tax code (A UK tax code tells your employer or pension provider how much tax-free pay to give you; 1257L, meaning £12,570, is the most common.)

Check your own tax code and pay

Other tax codes explained

1257L tax code (Standard tax-free allowance of £12,570 on one job or pension)
Emergency codes (W1, M1, X) tax code (Emergency basis: each payment taxed on its own)
S1257L tax code (Standard allowance, taxed at Scottish rates)
C1257L tax code (Standard allowance, taxed at Welsh rates)
1257M / 1383M tax code (You receive £1,260 of Marriage Allowance from your partner)
1257N / 1131N tax code (You transfer £1,260 of Marriage Allowance to your partner)
BR tax code (All pay taxed at the 20% basic rate, no allowance)
0T tax code (No tax-free pay; all pay taxed through the bands)
D0 tax code (All pay taxed at the 40% higher rate)
SD0, SD1, SD2, SD3 tax code (Scottish flat-rate codes at 21%, 42%, 45% or 48%)
K codes tax code (Untaxed income or deductions bigger than your allowance)
NT tax code (No tax taken from this job or pension)

Every UK tax code in one table · Salary after tax calculator · Check your own tax code and pay

Common questions

What does D1 mean in my tax code?

GOV.UK says D1 means all your income from that job or pension is taxed at the additional rate, usually because you have more than one job or pension. The additional rate is 45% for 2026/27.

Who is on a D1 tax code?

Someone whose other income already goes over £125,140, where the additional rate starts. At that point there is no Personal Allowance left, so HMRC taxes every pound of the second income at 45%.

How much tax is taken on D1?

45% of every pound from that source. £10,000 costs £4,500, £25,000 costs £11,250 and £40,000 costs £18,000 a year.

What is the difference between D0 and D1?

D0 charges 40% and D1 charges 45%. HMRC uses D0 when your other income reaches the higher band and D1 when it reaches the additional band above £125,140.

What is SD1?

The Scottish version. SD1 taxes all pay from that job at the Scottish higher rate of 42%, not the 48% top rate. A Scottish taxpayer whose other income is over £125,140 would usually get SD3.

Sources and assumptions

Income Tax for the 2026/27 tax year (6 April 2026 to 5 April 2027), with the same pay every payday for the whole year.
The code number is read as GOV.UK describes it: the tax-free amount with the last digit dropped (1257 = £12,570). Payroll tables can differ by a few pounds.
National Insurance, pension contributions and student loans are not included unless a table says so.

These are estimates to help you read your tax code, not tax advice. HMRC and your employer's payroll decide the tax you actually pay.