Tax Code SD3 Explained
SD3 taxes all income from this source at Scotland's Higher rate of 42% — with no Personal Allowance. Scotland's Higher rate (42%) is higher than England's (40%), making SD3 noticeably more costly than the England D0 code. It applies when additional income falls into the band from £43,663 to £75,000. This creates a significant tax burden on second-job income for higher earners in Scotland.
Who gets tax code SD3?
Scottish residents with substantial combined income — where additional earnings from a second job or income source fall into the Higher rate band. Someone with a main salary above £43,662 in Scotland would typically have a D0 or SD3 code on any secondary employment.
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 SD3 — 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 | £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 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 SD3, 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 SD3 mean?
SD3 taxes all income from this source at Scotland's Higher rate of 42% — with no Personal Allowance. Scotland's Higher rate (42%) is higher than England's (40%), making SD3 noticeably more costly than the England D0 code. It applies when additional income falls into the band from £43,663 to £75,000. This creates a significant tax burden on second-job income for higher earners in Scotland.
Who gets tax code SD3?
Scottish residents with substantial combined income — where additional earnings from a second job or income source fall into the Higher rate band. Someone with a main salary above £43,662 in Scotland would typically have a D0 or SD3 code on any secondary employment.
How much do I take home on tax code SD3 earning £30,000 in Scotland?
On tax code SD3 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 SD3 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 →