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UK Tax Codes Explained.

Find your tax code, understand what it means, and check if it is correct. HMRC-confirmed guidance for 2025/26.

HMRC-confirmed2025/26 ratesAll codes coveredFree to use

What is a tax code?

A tax code is a combination of numbers and letters used by HMRC to tell your employer or pension provider how much income tax to deduct from your pay. The number represents your tax-free Personal Allowance (multiply it by 10), and the letter tells HMRC which rules to apply to your income.

How to read your tax code

#

The numbers

Multiply the number by 10 to find your tax-free Personal Allowance. For example, 1257 means a Personal Allowance of £12,570. A higher number means more tax-free income; a lower number means HMRC has reduced your allowance.

A

The letters

The letter after your number tells HMRC which category of taxpayer you are. L is the standard default. BR means basic rate only. K means your deductions exceed your allowance. See the full table below.

LetterMeaning
LStandard Personal Allowance. Default for most employees.
MMarriage Allowance recipient. Extra £1,260 added.
NMarriage Allowance transferor. £1,260 reduced.
THMRC review pending. Other calculations apply.
KNegative allowance. Deductions exceed your allowance.
BRBasic Rate (20%). No Personal Allowance. Second job.
D0Higher Rate (40%). Second income source.
D1Additional Rate (45%). Income above £125,140.
0TZero allowance. Often an emergency code.
NTNo Tax deducted. Rare, usually non-residents.
W1/M1Non-cumulative. Each pay period taxed in isolation.
SScottish taxpayer. Scottish rates apply.
CWelsh taxpayer. Welsh rates (currently same as England).

How to check if your tax code is correct

1

Find your current code

Check your latest payslip (usually top right), your P2 coding notice from HMRC, or log into your HMRC Personal Tax Account at gov.uk.

2

Verify the number

Multiply the number by 10. If you have one job, no benefits in kind, and income under £100,000, it should be 1257 (giving a £12,570 Personal Allowance). A different number means HMRC has adjusted your allowance.

3

Check the letter

If you have one job and standard circumstances, the letter should be L. Any other letter means a special situation applies. Refer to the table above or click through to the relevant code page for details.

Frequently asked questions

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