Tax Code D1 Explained
Tax code D1 means all income from this source is taxed at the additional rate of 45% — the highest rate in the UK (for England, Wales and Northern Ireland). No Personal Allowance and no lower-rate bands apply. This is the steepest flat-rate code, used when your total income from other sources already exceeds the higher rate limit of £125,140.
Who gets tax code D1?
High earners with multiple income streams — typically those whose combined income from other sources already exceeds £125,140. Their additional employment or pension income falls into the additional rate band automatically. It may also be applied temporarily when HMRC believes total income will exceed the additional rate threshold.
High deduction code: This code applies a high flat rate with no tax-free allowance, resulting in significantly less take-home pay than standard codes. Check that you have this code on the correct employment — it should only apply to secondary income sources.
Take-home pay on tax code D1 — 2025-26 examples
Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.
| Gross Salary | Income Tax | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £9,000 | £594 | £10,406 | 45.0% |
| £25,000 | £11,250 | £994 | £12,756 | 45.0% |
| £30,000 | £13,500 | £1,394 | £15,106 | 45.0% |
| £35,000 | £15,750 | £1,794 | £17,456 | 45.0% |
| £40,000 | £18,000 | £2,194 | £19,806 | 45.0% |
| £45,000 | £20,250 | £2,594 | £22,156 | 45.0% |
| £50,000 | £22,500 | £2,994 | £24,506 | 45.0% |
| £60,000 | £27,000 | £3,211 | £29,789 | 45.0% |
| £75,000 | £33,750 | £3,511 | £37,739 | 45.0% |
| £100,000 | £45,000 | £4,011 | £50,989 | 45.0% |
Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.
If you have tax code D1, here's what you should know
- Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
- Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
- If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
- You can view and update your tax code online via your Personal Tax Account at gov.uk.
- If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
- An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.
Frequently asked questions
What does tax code D1 mean?
Tax code D1 means all income from this source is taxed at the additional rate of 45% — the highest rate in the UK (for England, Wales and Northern Ireland). No Personal Allowance and no lower-rate bands apply. This is the steepest flat-rate code, used when your total income from other sources already exceeds the higher rate limit of £125,140.
Who gets tax code D1?
High earners with multiple income streams — typically those whose combined income from other sources already exceeds £125,140. Their additional employment or pension income falls into the additional rate band automatically. It may also be applied temporarily when HMRC believes total income will exceed the additional rate threshold.
How much do I take home on tax code D1 earning £30,000?
On tax code D1 with a £30,000 salary, you take home £15,106 per year (£1,259 per month) after Income Tax of £13,500.
Is tax code D1 correct for me?
Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.
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