Tax codes, 2026/27
D1 tax code
D1 means all your income from this job or pension is taxed at the additional rate, 45%, with no tax-free allowance. It is usually used if you have more than one job or pension.
D1 taxes all pay from this job at the additional rate, 45%
With D1 there is no tax-free allowance and no lower band on this job or pension: every pound of it is taxed at the additional rate, 45%. For Scottish taxpayers the equivalent is SD1, at the Scottish higher rate of 42%. Scotland also has SD2, at the advanced rate of 45%, and SD3, at the top rate of 48%. CD1 is the Welsh version, at 45%.
| Pay from this job a year | Tax with D1 | Tax with SD1 |
|---|---|---|
| £10,000 | £4,500.00 | £4,200.00 |
| £20,000 | £9,000.00 | £8,400.00 |
| £40,000 | £18,000.00 | £16,800.00 |
On £20,000 of pay from the job, SD2 takes £9,000.00 and SD3 takes £9,600.00.
D1 is usually for a second job or pension
Like BR, D1 is usually used if you have more than one job or pension. You only get one Personal Allowance for each tax year, and it is usually given to the job that pays you the most. If you think this rate is higher than your total income justifies, ask HMRC to check your code.
HMRC's PAYE manual says the PAYE service defaults to the week 1 or month 1 basis for D1, so each payday is taxed on its own.
How to check or fix your tax code
- Find your code on your payslip, in a tax code letter from HMRC, or by signing in to HMRC's Check your Income Tax service or the HMRC app.
- If it looks wrong, use the same online service to check your jobs, pensions, estimated income and company benefits, and update anything that is wrong or missing. GOV.UK says this is the quickest way.
- If you have just started a new job, GOV.UK says to wait 35 days for HMRC to get your new income details before contacting them. If you left a job without a P45, ask your old employer for one.
- HMRC will tell you and your employer the new code within 15 working days. If you paid too much tax, your employer usually refunds it through your pay once the new code is used.
- If you cannot use the online service, contact HMRC about Income Tax.
Only HMRC can set or change your tax code. This page explains what codes mean; it is not personal tax advice. Sources: GOV.UK: If you think your tax code is wrong; GOV.UK: If you've paid too much or too little tax; GOV.UK: Tax codes.
Questions about D1
What does the D1 tax code mean?
D1 means all your income from this job or pension is taxed at the additional rate, 45%. It is usually used if you have more than one job or pension.
What is SD1?
SD1 is the Scottish version. It taxes all the pay from this job or pension at a single Scottish rate: 42%, the higher rate.
Other tax codes
- 1257LThe standard code: £12,570 tax-free.
- BRAll pay from this job taxed at 20%.
- D0All pay taxed at 40% (SD0: 21%).
- 0TNo tax-free allowance on this job.
- NTNo tax taken from this income.
- K codesExtra taxable pay added, such as K475.
- Emergency codesW1, M1 and X: each payday on its own.
- Tax code checkerType your code to see what it means.
This page explains what the D1 code means under GOV.UK and HMRC guidance for 2026/27. It is general information, not personal tax advice. Only HMRC can confirm or change your tax code. Tax figures are estimates for a full tax year at steady pay.
Sources
Rules checked 21 October 2026 against: GOV.UK: What your tax code means; GOV.UK: Understanding your employees' tax codes; HMRC PAYE Manual PAYE11015: codes for special cases; HMRC PAYE Manual PAYE11025: codes with no allowances or deductions; GOV.UK: How tax works if you have more than one job. How we calculate.
Tax rates and thresholds are taken from HMRC, GOV.UK and Scottish Government publications. Contains public sector information licensed under the Open Government Licence v3.0.