SD1 Tax Code in Scotland Explained (2026-27)
SD1 is a Scottish flat-rate code: all income from this job or pension is taxed at Scotland's higher rate of 42%, with no Personal Allowance. It is the Scottish counterpart of England's D0 code (40%). In 2026-27 the Scottish higher rate band runs from £43,663 to £75,000, so SD1 appears when your main income already reaches that band and the second source is taxed entirely at 42%.
What does tax code SD1 mean?
Tax code SD1 taxes all income from this source at 42%, Scotland's higher rate, with no Personal Allowance. It is the Scottish counterpart of D0 (40%). On £30,000 of second-job income, SD1 costs £600 more in Income Tax than D0.
Who gets tax code SD1?
Scottish residents whose main job or pension already takes them past £43,662, so any extra employment income falls in the higher rate band. A Scottish taxpayer earning £50,000 in a main job and doing occasional paid work on the side would typically see SD1 on the second payslip. If your main income later drops below the higher rate threshold, ask HMRC to review the code, as SD1 would then overtax you.
Scottish Income Tax: Scotland sets its own income tax rates via the Scottish Parliament. For 2026-27, 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 2026-27 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 | £8,400 | £594 | £11,006 | 42.0% |
| £25,000 | £10,500 | £994 | £13,506 | 42.0% |
| £30,000 | £12,600 | £1,394 | £16,006 | 42.0% |
| £35,000 | £14,700 | £1,794 | £18,506 | 42.0% |
| £40,000 | £16,800 | £2,194 | £21,006 | 42.0% |
| £45,000 | £18,900 | £2,594 | £23,506 | 42.0% |
| £50,000 | £21,000 | £2,994 | £26,006 | 42.0% |
| £60,000 | £25,200 | £3,211 | £31,589 | 42.0% |
| £75,000 | £31,500 | £3,511 | £39,989 | 42.0% |
| £100,000 | £42,000 | £4,011 | £53,989 | 42.0% |
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 2026-27
| Band | Rate | Income range |
|---|---|---|
| Starter Rate | 19% | £12,571-£16,537 |
| Basic Rate | 20% | £16,538-£29,526 |
| Intermediate Rate | 21% | £29,527-£43,662 |
| Higher Rate | 42% | £43,663-£75,000 |
| Advanced Rate | 45% | £75,001-£125,140 |
| Top Rate | 48% | £125,141-no upper limit |
Tax code SD1 vs S1257L: take-home comparison
How much more or less you take home on SD1 compared to the standard S1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | S1257L Take-Home | SD1 Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,948 | £11,006 | -£6,942 |
| £25,000 | £21,548 | £13,506 | -£8,042 |
| £30,000 | £25,123 | £16,006 | -£9,117 |
| £35,000 | £28,673 | £18,506 | -£10,167 |
| £40,000 | £32,223 | £21,006 | -£11,217 |
| £45,000 | £35,492 | £23,506 | -£11,986 |
| £50,000 | £37,992 | £26,006 | -£11,986 |
| £60,000 | £43,575 | £31,589 | -£11,986 |
| £75,000 | £51,975 | £39,989 | -£11,986 |
| £100,000 | £65,225 | £53,989 | -£11,236 |
Both columns include Scottish Income Tax and National Insurance. No pension or student loan deductions. S1257L = standard Scottish Personal Allowance of £12,570.
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 is a Scottish flat-rate code: all income from this job or pension is taxed at Scotland's higher rate of 42%, with no Personal Allowance. It is the Scottish counterpart of England's D0 code (40%). In 2026-27 the Scottish higher rate band runs from £43,663 to £75,000, so SD1 appears when your main income already reaches that band and the second source is taxed entirely at 42%.
Who gets tax code SD1?
Scottish residents whose main job or pension already takes them past £43,662, so any extra employment income falls in the higher rate band. A Scottish taxpayer earning £50,000 in a main job and doing occasional paid work on the side would typically see SD1 on the second payslip. If your main income later drops below the higher rate threshold, ask HMRC to review the code, as SD1 would then overtax you.
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 £16,006 per year (£1,334 per month) after Scottish Income Tax of £12,600.
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?
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