Scottish tax codes

What the S says

GOV.UK says the letter S at the start of a code means your income or pension is taxed using the rates in Scotland.

If you are employed or get a pension and pay Scottish Income Tax, your tax code starts with an S. GOV.UK says this tells your employer or pension provider to deduct tax at the Scottish rate.

GOV.UK says your tax code will be S1257L if you pay Scottish Income Tax and get the standard Personal Allowance of £12,570.

GOV.UK's guidance for employers says S takes tax from income in the Scottish tax bands, for an employee whose main home is in Scotland, and C takes tax from income in the Welsh tax bands, for an employee whose main home is in Wales.

The Scottish rates for 2026 to 2027

GOV.UK's table shows the 2026 to 2027 Scottish Income Tax rates you pay in each band if you have a standard Personal Allowance of £12,570. You do not get a Personal Allowance if you earn over £125,140.

Scottish Income Tax applies to your wages, pension and most other taxable income. You pay the same tax as the rest of the UK on dividends and savings interest.

The Scottish flat-rate codes

Codes written as one unit take a single rate from all income, and are for a second job or pension.

GOV.UK's guidance for employers says SBR, SD0, SD1, SD2 and SD3 take tax from all income at the basic, intermediate, higher, advanced and top rate in Scotland, and are for a second job or pension.

• GOV.UK says SBR means all your income from this job or pension is taxed at the basic rate in Scotland, usually used if you have more than one job or pension.
• GOV.UK says SD0 means all your income from this job or pension is taxed at the intermediate rate in Scotland, usually used if you have more than one job or pension.
• GOV.UK says SD1 means all your income from this job or pension is taxed at the higher rate in Scotland, usually used if you have more than one job or pension.
• GOV.UK says SD2 means all your income from this job or pension is taxed at the advanced rate in Scotland, usually used if you have more than one job or pension.
• GOV.UK says SD3 means all your income from this job or pension is taxed at the top rate in Scotland, usually used if you have more than one job or pension.

GOV.UK says S0T means your Personal Allowance (Scotland) has been used up, or you have started a new job and your employer does not have the details they need to give you a tax code.

Who pays Scottish Income Tax

You pay Scottish Income Tax if you live in Scotland. It is paid to the Scottish Government.

GOV.UK says you may also pay Scottish Income Tax if you move to or from Scotland, live in a home in Scotland and one elsewhere in the UK (for example for work), do not have a home but spend more days in Scotland than elsewhere in the UK during a tax year, or are a member of the Scottish Parliament.

GOV.UK says your main home is usually where you live and spend most of your time, and that it does not matter whether you own it, rent it or live in it for free.

Moving to or from Scotland

GOV.UK says you must tell HMRC your new address if you move to or from Scotland, and that you may pay tax at the wrong rate if you do not.

If HMRC changes your tax rate because you moved, GOV.UK says the new rate is backdated to the start of the tax year (6 April) in which you moved, and the tax taken from your wages or pension is adjusted automatically so you pay the right amount across the whole year.

Reading the rest of the code

The S sits in front of a code that is read the same way as any other.

The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year.

GOV.UK's guidance for employers says you usually multiply the number in a tax code by 10 to get the total amount of income that can be earned before being taxed. Its example: with the code 1257L, an employee can earn £12,570 before being taxed.

• 1257LThe standard code, read part by part
• Letter LThe letter L and the allowance it stands for
• Emergency tax codesW1, M1, X and NONCUM

If the code looks wrong

HMRC usually updates your tax code using information it gets from your employer or pension provider. GOV.UK says that if your tax code is wrong, it is usually because HMRC has incorrect or missing information, and that to correct it you check and update the details HMRC has about you.

GOV.UK says using the online service is the quickest way to check and update your details: sign in to the Check your Income Tax online service, check your employment, pension, estimated taxable income, company benefit and expenses details, and update your details if there is anything wrong or missing.

If you think your tax code is wrong and you cannot use the online service, GOV.UK says you can contact HMRC. HMRC's Income Tax enquiries line is 0300 200 3300. The Income Tax enquiries line is open Monday to Friday, 8am to 6pm, and closed on bank holidays.

• Tax code notice (P2)The letter HMRC sends when your code changes

GOV.UK pages on this

• GOV.UK: Income Tax in ScotlandGOV.UK's Income Tax in Scotland guide: the rates, who pays and how a move is handled.
• GOV.UK: What your tax code meansGOV.UK's page on what your tax code means: the numbers, the letters and a worked example.
• GOV.UK: Income Tax rates and Personal AllowancesGOV.UK's Income Tax rates and Personal Allowances page for the current tax year.

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