Tax Code SD1 Explained
SD1 taxes all income from this source at Scotland's Basic rate of 20% — with no Personal Allowance. It is the Scottish equivalent of England's BR code and produces identical take-home figures at the same gross salary. The S prefix indicates the taxpayer is a Scottish resident, which becomes relevant if the income is reassessed at a different band.
Who gets tax code SD1?
Scottish residents with a second job whose additional income falls into the Basic rate band (£15,398–£27,491 in 2025-26), and where the Personal Allowance is already used by primary employment. HMRC may issue SD1 instead of SBR in some circumstances, particularly when they have more information about total income levels.
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 SD1 — 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 | £4,000 | £594 | £15,406 | 20.0% |
| £25,000 | £5,000 | £994 | £19,006 | 20.0% |
| £30,000 | £6,000 | £1,394 | £22,606 | 20.0% |
| £35,000 | £7,000 | £1,794 | £26,206 | 20.0% |
| £40,000 | £8,000 | £2,194 | £29,806 | 20.0% |
| £45,000 | £9,000 | £2,594 | £33,406 | 20.0% |
| £50,000 | £10,000 | £2,994 | £37,006 | 20.0% |
| £60,000 | £12,000 | £3,211 | £44,789 | 20.0% |
| £75,000 | £15,000 | £3,511 | £56,489 | 20.0% |
| £100,000 | £20,000 | £4,011 | £75,989 | 20.0% |
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 SD1, 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 SD1 mean?
SD1 taxes all income from this source at Scotland's Basic rate of 20% — with no Personal Allowance. It is the Scottish equivalent of England's BR code and produces identical take-home figures at the same gross salary. The S prefix indicates the taxpayer is a Scottish resident, which becomes relevant if the income is reassessed at a different band.
Who gets tax code SD1?
Scottish residents with a second job whose additional income falls into the Basic rate band (£15,398–£27,491 in 2025-26), and where the Personal Allowance is already used by primary employment. HMRC may issue SD1 instead of SBR in some circumstances, particularly when they have more information about total income levels.
How much do I take home on tax code SD1 earning £30,000 in Scotland?
On tax code SD1 with a £30,000 salary in Scotland, you take home £22,606 per year (£1,884 per month) after Scottish Income Tax of £6,000.
Is tax code SD1 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 →