Tax Code SD0 Explained
SD0 is a Scottish flat-rate code that taxes all income from this source at Scotland's Starter rate of 19% — with no Personal Allowance. It sits below Scotland's Basic rate (SD1) and is used when additional income falls into the lowest Scottish taxable band. The 19% Starter rate is unique to Scotland; England has no equivalent (the nearest is BR at 20%).
Who gets tax code SD0?
Scottish residents whose second or additional income source falls into the Starter rate band. This is relatively unusual as a standalone code — more often, HMRC will use SBR (20%) for second jobs. SD0 may be applied when specific information about income levels indicates that the Starter rate applies to the additional income.
Scottish Income Tax: Scotland sets its own income tax rates via the Scottish Parliament. For 2025-26, the Starter Rate (19%) applies from £12,571–£14,876, the Intermediate Rate (21%) applies from £26,562–£43,662, and the Higher Rate (42%) applies from £43,663–£75,000 — significantly higher than England's 40% which starts at £50,270. National Insurance is the same across all UK regions.
Take-home pay on tax code SD0 — Scotland 2025-26 examples
Examples below show Scottish Income Tax and take-home pay at common salary levels. NI applies on the same basis for all UK employees regardless of region.
| Gross Salary | Scottish IT | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £3,800 | £594 | £15,606 | 19.0% |
| £25,000 | £4,750 | £994 | £19,256 | 19.0% |
| £30,000 | £5,700 | £1,394 | £22,906 | 19.0% |
| £35,000 | £6,650 | £1,794 | £26,556 | 19.0% |
| £40,000 | £7,600 | £2,194 | £30,206 | 19.0% |
| £45,000 | £8,550 | £2,594 | £33,856 | 19.0% |
| £50,000 | £9,500 | £2,994 | £37,506 | 19.0% |
| £60,000 | £11,400 | £3,211 | £45,389 | 19.0% |
| £75,000 | £14,250 | £3,511 | £57,239 | 19.0% |
| £100,000 | £19,000 | £4,011 | £76,989 | 19.0% |
Take-home = Gross − Scottish Income Tax − National Insurance. No pension, student loan or other deductions. NI: 8% between £12,570–£50,270 and 2% above.
Scottish income tax bands 2025-26
| Band | Rate | Income range |
|---|---|---|
| Starter Rate | 19% | £12,571 – £15,397 |
| Basic Rate | 20% | £15,398 – £27,491 |
| Intermediate Rate | 21% | £27,492 – £43,662 |
| Higher Rate | 42% | £43,663 – £75,000 |
| Advanced Rate | 45% | £75,001 – £125,140 |
| Top Rate | 48% | £125,141 – no upper limit |
If you have tax code SD0, here's what you should know
- Your S-prefix tax code confirms you are coded as a Scottish resident for income tax purposes. HMRC uses your residential address to determine this.
- Your employer uses this code to deduct Scottish Income Tax — they follow HMRC's instructions and cannot change your code themselves.
- If you have recently moved to or from Scotland, contact HMRC to ensure your code is updated. An incorrect residence determination means wrong tax rates applied.
- You can view and update your tax code 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.
Frequently asked questions
What does tax code SD0 mean?
SD0 is a Scottish flat-rate code that taxes all income from this source at Scotland's Starter rate of 19% — with no Personal Allowance. It sits below Scotland's Basic rate (SD1) and is used when additional income falls into the lowest Scottish taxable band. The 19% Starter rate is unique to Scotland; England has no equivalent (the nearest is BR at 20%).
Who gets tax code SD0?
Scottish residents whose second or additional income source falls into the Starter rate band. This is relatively unusual as a standalone code — more often, HMRC will use SBR (20%) for second jobs. SD0 may be applied when specific information about income levels indicates that the Starter rate applies to the additional income.
How much do I take home on tax code SD0 earning £30,000 in Scotland?
On tax code SD0 with a £30,000 salary in Scotland, you take home £22,906 per year (£1,909 per month) after Scottish Income Tax of £5,700.
Is tax code SD0 correct for me?
Your Scottish tax code is set by HMRC based on your individual circumstances and Scottish residence. If you believe your 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 Scottish Income Tax.
Want to see your exact Scottish take-home pay with your real salary, pension, and student loan?
Use the Scotland salary calculator →