Tax Code UK Calculator 2026 — Personal Allowance & Take-Home

What is a UK tax code?

Your tax code tells your employer how much tax to deduct from your pay. It's issued by HMRC and reflects your personal allowance, taxable benefits, and any underpayment or emergency amounts from previous years. The standard code for 2026 is 1257L (meaning £12,570 personal allowance).

How to read a tax code

The numbers represent how much income you can earn tax-free in a year (in £100s), divided by 10 and added to the letters suffix. For example, 1257L = £12,570 tax-free. The letter indicates special conditions: L = standard, K = negative allowance, T = multiple conditions, BR = basic rate only, 0T = no allowance.

Common tax codes

1257L: standard personal allowance. K1000: negative allowance of £1,000 (e.g., taxable benefits exceed allowance). BR: all income taxed at basic 20%. 0T: emergency code, no personal allowance. D0: 40% on all income (higher rate). D1: 45% on all income (additional rate).

Why your code might change

Job change, new tax year, marriage/civil partnership, taxable benefits (company car, health insurance), underpayment from previous year, dividend income over £500, second job. Your new employer needs your P45 to assign the correct code.

Tax code vs personal allowance

Personal allowance is the underlying amount of tax-free income (£12,570 for 2026). Your tax code is the mechanism that applies this allowance through PAYE. If you have multiple income sources, your allowance may be split across codes.

Checking your tax code

You can view your current tax code in your personal tax account on gov.uk, on your payslip, or by contacting HMRC. If your code seems wrong, you can challenge it within 12 months. Wrong codes can lead to under- or over-payment of tax.