Tax code D1 explained
Tax code D1 means all income taxed at 45%. It is used when income from this source is all taxed at the additional rate.
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What does tax code D1 mean?
The code D1 tells your employer or pension provider how to tax you without using a personal allowance in the usual way. It is common on second jobs, small pensions and when HMRC is still working out your details.
If your main job and a second job both use 1257L, you can end up with the wrong amount of tax: HMRC should put the allowance on the main job and use BR on the other.
Income tax on typical amounts with code D1
Income tax only, England, Wales and Northern Ireland rates for 2026/27.
Tax code D1
| Pay | Income tax a year | Income tax a month | Pay after income tax |
|---|---|---|---|
| £20,000 | £9,000 | £750 | £11,000 |
| £25,000 | £11,250 | £938 | £13,750 |
| £30,000 | £13,500 | £1,125 | £16,500 |
| £40,000 | £18,000 | £1,500 | £22,000 |
| £50,000 | £22,500 | £1,875 | £27,500 |
| £60,000 | £27,000 | £2,250 | £33,000 |
| £80,000 | £36,000 | £3,000 | £44,000 |
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What to do next
- Check that the code matches your situation on your payslip.
- If you have only one job and see 0T, BR or an emergency code, contact HMRC.
- You can claim back overpaid tax once your code is corrected.
Sources and further reading
Questions people ask
What does tax code D1 mean?
It means all income taxed at 45%. It is used when income from this source is all taxed at the additional rate.
Is code D1 bad?
Not always. It is normal for second jobs and pensions, but it can mean too much tax if it is on your only job.
Results are estimates for information only, not financial advice. Read the full disclaimer.
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