SD0, SD1, SD2 and SD3 tax codes

Tax under each SD code in 2026/27

Tax a year if this much pay is taxed under each code, with S1257L for comparison.

Which SD code matches your other income

The band your main income reaches decides the rate on the second source. Scottish bands for 2026/27 from GOV.UK.

Why Scotland has more D codes

Scotland has six Income Tax bands, so it needs more flat-rate codes. HMRC's manual says D codes numbered 2 to 8 are for the higher rates set by the Scottish Government and always carry an S prefix. For 2026/27 GOV.UK lists SD0 to SD3.

SD0 is not the same as D0

Outside Scotland D0 means 40%. In Scotland SD0 means the 21% intermediate rate, because that is the first band above the basic rate. The Scottish equivalent of 40% tax on a second job is SD1 at 42%.

Starter rate second jobs

If your main job only reaches the 19% starter rate, HMRC's manual says a second source can be coded S0T, so it picks up the rest of the starter and basic bands, rather than SBR.

Default basis

HMRC's system defaults D codes to week 1 / month 1, where each payment is taxed on its own and no refunds are given in the year. They can also be issued on the cumulative basis.

If you think this code is wrong

If your main income has fallen into a lower band, your SD code may now be taking too much. 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)
• D1 tax code (All pay taxed at the 45% additional rate)
• 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