Key takeaways
- The standard tax code for 2026/27 is 1257L, reflecting a £12,570 Personal Allowance that is unchanged from 2025/26.
- Emergency tax codes end in W1, M1 or X, or show NONCUM, and HMRC can take up to 35 days after you start a job to update them.
- Scottish taxpayers have codes starting with S, such as S1257L, and Welsh taxpayers have codes starting with C.
- Income Tax outside Scotland in 2026/27 is 20% from £12,571, 40% from £50,271 and 45% over £125,140.
- Blind Person's Allowance rises to £3,250 for 2026/27, while Marriage Allowance stays at £1,260 and the dividend allowance at £500.
The standard tax code for the 2026/27 tax year is 1257L, which gives you the full £12,570 tax-free Personal Allowance from one job or pension. The Personal Allowance and the Income Tax bands outside Scotland are unchanged from 2025/26, so most people's code stays the same, but your own code can differ if you have benefits, more than one income or tax to pay from an earlier year.
This guide explains what the numbers and letters in a tax code mean, how emergency, K, Scottish and Welsh codes work, and the main allowances and tax bands for 2026/27 (6 April 2026 to 5 April 2027). Every figure is from GOV.UK.
What is a tax code and why does it matter?
Your tax code tells your employer or pension provider how much Income Tax to take from your pay or pension. HMRC tells them which code to use, and you get a separate code for each job or pension you have. If you are on the wrong code, you may pay too much or too little tax (GOV.UK).
The standard tax code
1257L is the tax code currently used for most people with one job or pension. The number is your tax-free Personal Allowance of £12,570 with the last digit removed, and the L means you get the standard allowance.
To work out your individual number, HMRC starts with your Personal Allowance and takes off untaxed income, such as untaxed interest or part-time earnings, and other deductions, such as company benefits. GOV.UK's own example: if you get £1,570 of medical insurance from your employer, your tax-free amount falls to £11,000 and your code becomes 1100L (GOV.UK).
Tax code letters and what they mean
The letters show your situation and how it affects your Personal Allowance and the rates you pay:
| Letters | What they mean |
|---|---|
| 0T | Your Personal Allowance has been used up, or you have started a new job and your employer does not have the details they need to give you a tax code |
| BR | All your income from this job or pension is taxed at the basic rate (usually used if you have more than one job or pension) |
| C | Your income or pension is taxed using the rates in Wales |
| C0T | Your Personal Allowance (Wales) has been used up, or you have started a new job and your employer does not have the details they need |
| CBR | All income from this job or pension is taxed at the basic rate in Wales |
| CD0 | All income from this job or pension is taxed at the higher rate in Wales |
| CD1 | All income from this job or pension is taxed at the additional rate in Wales |
| D0 | All income from this job or pension is taxed at the higher rate (usually used if you have more than one job or pension) |
| D1 | All income from this job or pension is taxed at the additional rate (usually used if you have more than one job or pension) |
| K | You have income you are not paying tax on which is more than your Personal Allowance |
| L | You are entitled to the standard tax-free Personal Allowance |
| M | Marriage Allowance: you have received a transfer of 10% of your partner's Personal Allowance |
| N | Marriage Allowance: you have transferred 10% of your Personal Allowance to your partner |
| M1, W1, X or NONCUM | You are on an emergency tax code |
| NT | You are not paying any tax on this income |
| S | Your income or pension is taxed using the rates in Scotland |
| S0T | Your Personal Allowance (Scotland) has been used up, or you have started a new job and your employer does not have the details they need |
| SBR | All income from this job or pension is taxed at the basic rate in Scotland |
| SD0 | All income from this job or pension is taxed at the intermediate rate in Scotland |
| SD1 | All income from this job or pension is taxed at the higher rate in Scotland |
| SD2 | All income from this job or pension is taxed at the advanced rate in Scotland |
| SD3 | All income from this job or pension is taxed at the top rate in Scotland |
| T | Your tax code includes other calculations to work out your Personal Allowance |
You can enter your code into HMRC's check what your tax code means tool to see what it means for you. Source: GOV.UK.
Emergency tax codes
You are on an emergency tax code if your code ends in W1 (paid weekly, for example 1257L W1), M1 (paid monthly, for example S875L M1) or X (pay dates vary, for example C663L X). Some payroll software shows NONCUM instead.
Normally tax is worked out on your total pay so far in the tax year. On an emergency code it is worked out only on what you are paid in that week or month, as if you were paid that amount all year, which can mean paying the wrong amount.
Emergency codes are common when you start a new job and your employer does not have your previous pay details, or when you start getting company benefits or the State Pension. Give your new employer your P45 if you have one. HMRC usually updates your code once it has your details, which can take up to 35 days from when you start the job (GOV.UK). See what a P45 is.
K tax codes
A code with a K means you have income or deductions higher than your Personal Allowance that are not already being taxed. It can happen when you are paying tax owed from an earlier year through your wages or pension, get State Pension or taxable state benefits, have company benefits such as a company car, or get more savings interest than your Personal Savings Allowance. Employers and pension providers cannot take more than half of your pre-tax pay or pension when using a K code (GOV.UK).
Scottish and Welsh tax codes
If you pay Scottish Income Tax, your code starts with S. With the standard Personal Allowance it is S1257L (GOV.UK). If you live in Wales, HMRC adds a C to the start of your code so you pay the Welsh rates (GOV.UK). Welsh rates for 2026/27 are the same as those in England and Northern Ireland.
How are PAYE tax codes updated?
HMRC changes your code when you need to pay a different amount of tax, usually because your income or circumstances change. Common reasons include:
- starting a new job, or income from an additional job or pension
- getting taxable state benefits, or a change in your weekly State Pension
- savings interest above your Personal Savings Allowance
- starting or stopping benefits from your job
- claiming Marriage Allowance or expenses you get tax relief on
- paying the High Income Child Benefit Charge through your wages or pension
- needing to pay back the Winter Fuel Payment or Pension Age Winter Heating Payment
- having been on the wrong tax code and owing tax
Source: GOV.UK.
Where do I find my tax code?
- online, by checking your tax code for the current year in your personal tax account
- in the HMRC app
- on your payslip, or on your P60
- on a Tax Code Notice letter from HMRC, if you get one
Checking online or in the app also shows codes for previous years, and you can sign up for paperless notifications so HMRC emails you when your code changes (GOV.UK).
If you think your tax code is wrong
A wrong code usually means HMRC has incorrect or missing information. The quickest fix is the Check your Income Tax online service: check your employment, pension, estimated income, company benefits and expenses, and update anything that is wrong or missing.
If your code needs to change, HMRC updates it and tells you and your employer within 15 working days. If you are paid monthly, the new code should be on your next or following payslip; if weekly, on your third payslip. If you have started a new job, wait 35 days before contacting HMRC. Accountants updating HMRC about a client's income use the PAYE Coding Notice query form (GOV.UK).
If you have paid too much, HMRC usually asks your employer or pension provider to refund the difference through your pay once the new code is used. If you have paid too little, HMRC may adjust your code to collect it over one or more tax years (GOV.UK).
Personal Allowance for 2026/27
The standard Personal Allowance for 2026/27 is £12,570, the same as in 2025/26. It goes down by £1 for every £2 of adjusted net income above £100,000, so you have no Personal Allowance once your income reaches £125,140 (GOV.UK).
Income Tax bands and rates for 2026/27
These rates apply in England, Wales and Northern Ireland if you have the standard Personal Allowance:
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The bands are the same as in 2025/26. Source: GOV.UK Income Tax rates. Use our take-home pay calculator to see what they mean for your salary.
Scotland's Income Tax bands for 2026/27
Scottish Income Tax applies to wages, pensions and most other taxable income if you live in Scotland. Dividends and savings interest are taxed at the same rates as the rest of the UK.
| Band | Taxable income | Scottish tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
For comparison, in 2025/26 the starter rate band ended at £15,397 and the basic rate band at £27,491; the other thresholds and all the rates are unchanged. Source: GOV.UK Income Tax in Scotland.
Other allowances
| Allowance | 2026/27 | 2025/26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Marriage Allowance transfer | £1,260 | £1,260 |
| Blind Person's Allowance | £3,250 | £3,130 |
| Dividend allowance | £500 | £500 |
| Married Couple's Allowance (maximum) | £11,700 | £11,270 |
| Married Couple's Allowance (minimum) | £4,530 | £4,360 |
Source: GOV.UK rates and allowances for Income Tax.
Blind Person's Allowance
Blind Person's Allowance is £3,250 for 2026/27, up from £3,130 in 2025/26. It is added to your Personal Allowance. If you and your spouse or civil partner are both eligible you each get it, and you can transfer it to your partner if you cannot use all of it (GOV.UK).
Marriage Allowance
Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner, reducing their tax by up to £252 in the tax year. To benefit as a couple, the lower earner normally has income below their Personal Allowance and the other partner pays tax at the basic rate, usually meaning income between £12,571 and £50,270. In Scotland the partner must pay the starter, basic or intermediate rate, usually £12,571 to £43,662 (GOV.UK). It shows as M or N in your tax code.
Dividend allowance
The dividend allowance is £500 a year. Dividends above it are taxed at these rates for 2026/27 (GOV.UK):
| Tax band | Tax rate on dividends over the allowance |
|---|---|
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Dividends from shares in an ISA are tax-free. See our guide to tax on dividends.
Savings allowance
Your Personal Savings Allowance depends on your Income Tax band (GOV.UK):
- £1,000 of interest for basic rate taxpayers
- £500 for higher rate taxpayers
- £0 for additional rate taxpayers
If your other taxable income is less than £17,570, you may also get the starting rate for savings, which lets you earn up to £5,000 of interest tax-free. It shrinks by £1 for every £1 of other income above your Personal Allowance. If your savings interest is more than your allowance, HMRC may change your tax code to collect the tax.
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