What Does My Tax Code Mean? (2025/26 Edition)
Your tax code is a short alphanumeric string that tells your employer how much tax to deduct from your pay. If it's wrong, you could be paying too much or too little tax.
The Standard Code: 1257L
The most common tax code for the 2025/26 tax year is 1257L.
- 1257: This represents your tax-free Personal Allowance. Add a zero to the end to get the value: £12,570.
- L: This letter means you are entitled to the standard tax-free Personal Allowance.
Common Letters Explained
| Letter | Meaning |
|---|---|
| L | You’re entitled to the standard tax-free Personal Allowance. |
| M | Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance. |
| N | Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner. |
| T | Your tax code includes other calculations to work out your Personal Allowance (e.g., income over £100k). |
| 0T | Your Personal Allowance has been used up, or you’ve started a new job and your employer doesn’t have the details they need. |
| BR | Basic Rate. All your income from this job is taxed at 20% (usually for a second job). |
| D0 | Higher Rate. All your income from this job is taxed at 40%. |
| D1 | Additional Rate. All your income from this job is taxed at 45%. |
| NT | You’re not paying any tax on this income. |
K Codes
If your tax code starts with a K (e.g., K475), it means you have income that isn't being taxed another way and it's worth more than your tax-free allowance. For most people, this happens when you're paying tax you owe from a previous year through your wages or pension, or getting benefits like a company car.
Emergency Tax Codes
If your tax code ends in W1, M1, or X, you are on an emergency tax code. This usually happens when you start a new job. It means you will pay tax on all your income above the basic Personal Allowance, but it's calculated only on what you've been paid in the current pay period, not the whole year.
Check your take-home pay
Enter your tax code into our Income Tax Calculator to see exactly how it affects your monthly wage.