UK Tax Code Calculator
Understand your PAYE tax code and estimate your income tax instantly. Supports standard, emergency, and K codes, plus Scottish tax rates.
Calculate Tax Based on Your Tax Code
Enter your gross salary and tax code to see exactly how your income tax is calculated, with a clear breakdown of your tax-free allowance and taxable bands.
PAYE Tax Estimator
Get a clear breakdown of your income tax obligations.
How Tax Codes Work
Decoding your payslip
Identify the Code
Your tax code is issued by HMRC and tells your employer how much tax-free income you are entitled to before tax is deducted.
Calculate Allowance
For standard codes, multiply the number by 10 to find your Personal Allowance. For K codes, this amount is added to your taxable income instead.
Apply Tax Bands
Income tax is progressive. You only pay the higher percentage on the portion of your taxable income that falls within that specific band.
Check for Tapering
If your income exceeds £100,000, your standard Personal Allowance is reduced by £1 for every £2 earned over this threshold, effectively creating a 60% marginal tax rate in that band.
Common Tax Codes Explained
A quick guide to the most frequently encountered PAYE tax codes in the UK.
| Tax Code | Meaning | Who it applies to |
|---|---|---|
| 1257L | Standard Personal Allowance (£12,570) | Most employees with one job and no untaxed benefits. |
| BR | Basic Rate (20% or 19% in Scotland) | Second jobs or pensions where the Personal Allowance is used elsewhere. |
| D0 | Higher Rate (40% or 42% in Scotland) | Additional income sources for those already using their allowance and in the higher band. |
| D1 | Additional Rate (45% or 47% in Scotland) | Additional income sources for top-rate taxpayers (earning over £125,140). |
| NT | No Tax | Individuals exempt from paying income tax on this specific income source. |
| K + Number | Deductions exceed allowances | Employees with high company benefits (e.g., company cars) or owed tax from previous years. |
| S + Code | Scottish Taxpayer | Individuals who live in Scotland for most of the tax year (e.g., S1257L). |
Tax Code FAQ
Answers to the most frequently asked questions about UK PAYE tax codes and income tax calculations.
The 1257L tax code is the standard tax code for most UK employees. The numbers ‘1257’ represent your tax-free Personal Allowance of £12,570 for the 2024/2025 tax year. The ‘L’ indicates you are entitled to this standard allowance.
BR stands for Basic Rate. If you have a BR tax code, all of your income from that specific job or pension is taxed at the basic rate of 20% (or 19% for Scottish taxpayers), with no tax-free Personal Allowance applied. This is common for second jobs.
A K tax code means your tax-free allowances are less than the value of your untaxed income (such as company benefits or the State Pension). The number following the ‘K’ is multiplied by 10 and added to your taxable income, rather than being deducted from it, ensuring you pay the correct tax on your benefits.
You are generally considered a Scottish taxpayer for income tax purposes if you live in Scotland for most of the tax year. Your tax code will usually start with an ‘S’ (e.g., S1257L) if HMRC has correctly identified you as a Scottish taxpayer, meaning Scottish income tax rates and bands will apply.