Tax codes, 2026/27
SD0, SD1, SD2 and SD3 tax codes
SD0, SD1, SD2 and SD3 mean all your income from this job or pension is taxed at one Scottish rate: 21%, 42%, 45% or 48%, with no tax-free allowance. They are usually used for a second job or pension.
Each code taxes all pay from this job at one Scottish rate
| Code | Rate on all pay from the job | Scottish band | Band in 2026/27 |
|---|---|---|---|
| SD0 | 21% | Intermediate rate | £29,527 to £43,662 |
| SD1 | 42% | Higher rate | £43,663 to £75,000 |
| SD2 | 45% | Advanced rate | £75,001 to £125,140 |
| SD3 | 48% | Top rate | Over £125,140 |
Bands are for income with the standard Personal Allowance.
None of these codes gives a tax-free allowance. HMRC's guide for employers says each is for a second job or pension. They are not the same as D0 and D1: outside Scotland, D0 taxes all the pay from a job at 40%, the higher rate, and D1 at 45%, the additional rate. Scotland's 45% code is SD2. CD0 is the Welsh version of D0, also at 40%.
| Pay from this job a year | Tax with SD0 | Tax with SD1 | Tax with SD2 | Tax with SD3 |
|---|---|---|---|---|
| £5,000 | £1,050.00 | £2,100.00 | £2,250.00 | £2,400.00 |
| £10,000 | £2,100.00 | £4,200.00 | £4,500.00 | £4,800.00 |
| £20,000 | £4,200.00 | £8,400.00 | £9,000.00 | £9,600.00 |
| £30,000 | £6,300.00 | £12,600.00 | £13,500.00 | £14,400.00 |
| £40,000 | £8,400.00 | £16,800.00 | £18,000.00 | £19,200.00 |
Usually for a second 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. In 2026/27 the Scottish intermediate rate covers income from £29,527 to £43,662, so the pay from a second job can be taxed at 21% (SD0) when your other income already reaches that band. If your other income reaches the Scottish higher, advanced or top band, the pay from a second job or pension can be taxed at that rate instead.
If you think the rate is more than your total income justifies, for example SD0 when your other income is less than £29,527, ask HMRC to check your code. For 20%, see SBR. Scottish income tax rates for the year are on the S1257L page.
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 SD0, SD1, SD2 and SD3
What does SD0 mean?
SD0 means all your income from this job or pension is taxed at the Scottish intermediate rate, 21%, with no tax-free allowance. It is usually used for a second job or pension.
Is SD0 40%?
No. SD0 is 21%, the Scottish intermediate rate. D0, used outside Scotland, is 40%.
What do SD1, SD2 and SD3 mean?
SD1 taxes all the pay from the job at 42%, the Scottish higher rate, SD2 at 45%, the Scottish advanced rate, and SD3 at 48%, the Scottish top rate. Like SD0, they are usually used for a second job or pension.
Is SD1 the same as D1?
No. D1, used outside Scotland, is 45%, the additional rate. SD1 is 42%, the Scottish higher rate.
Other tax codes
- Tax code checkerType your code to see what it means.
- 1257LThe standard code: £12,570 tax-free.
- S1257LScottish rates with the standard allowance.
- C1257LWelsh rates: the same tax as 1257L in 2026/27.
- BRAll pay from this job taxed at 20%.
- SBRScotland: all pay from this job at 20%.
- D0 and D1All pay taxed at 40% or 45%.
- 0TNo tax-free allowance on this job.
- S0TNo allowance, Scottish rates from 19%.
- NTNo tax taken from this income.
- K codesExtra taxable pay added, such as K475.
- M and N codesMarriage Allowance: 1383M and 1131N.
- T codesOther calculations in your allowance, such as 1257T.
- Emergency codesW1, M1 and X: each payday on its own.
This page explains what SD0, SD1, SD2 and SD3 mean 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 28 October 2026 against: GOV.UK: What your tax code means; GOV.UK: Understanding your employees' tax codes; HMRC PAYE Manual PAYE11025: codes with no allowances or deductions; GOV.UK: Scottish Income Tax; 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.