Free calculator · 2026/27 rates

Tax code explainer

A tax code tells your employer how much tax-free pay you get. The standard code for 2026/27 is 1257L, which means a £12,570 personal allowance. Type any code below, such as BR, K475, S1257L or 1257L W1, and this tool explains what each letter and number means and whether it looks right for your situation.

Your tax code

Tax code

Find it on your payslip, P60, P45 or in your HMRC personal tax account.

Tax year

Explanation · 2026/27

1257L means you can earn £12,570 a year before paying income tax

Tax code 1257L gives you a tax-free personal allowance of £12,570 for the 2026/27 tax year, which is £1,048 a month or £242 a week. Anything you earn above that is taxed at the England and Northern Ireland rates, starting at 20%. The number is simply your allowance with the last digit removed.

Tax-free allowance: £12,570
Per month tax-free: £1,048
Region: England / NI

The number 1257 is your allowance divided by 10: 1257 × 10 = £12,570. HMRC actually lets you earn up to £12,579 before tax because the last digit is dropped.
1257L is the standard code for 2026/27. Most people with one job and no benefits, deductions or untaxed income have it.
The L suffix means you are entitled to the standard tax-free personal allowance, with no marriage allowance adjustment.
There is no S or C prefix, so HMRC treats you as living in England or Northern Ireland.

See take-home pay with this code Full guide to 1257L

How do you read a tax code?

Most codes are a number followed by a letter. Multiply the number by 10 to get your annual tax-free allowance: 1257 becomes £12,570. The letter describes your situation: L is the standard allowance, M and N show Marriage Allowance received or given, and T means HMRC reviews the code each year. A prefix of S means Scottish rates apply and C means Welsh rates.

Code	What it means
1257L	Standard personal allowance of £12,570.
BR	All income taxed at 20%. Usually a second job or pension.
D0 / D1	All income taxed at 40% or 45%. Second income for higher earners.
0T	No allowance, but the normal bands apply. Often a new job with no P45.
K475	£4,750 added to taxable pay because benefits or untaxed income exceed the allowance.
NT	No tax deducted. Rare.
1257L W1 / M1 / X	Emergency code: each pay period taxed on its own.

Worked example: code 1131N

Someone who has transferred £1,260 of their allowance to their spouse has an allowance of £11,310. Divided by 10 and rounded down that is 1131, with the N suffix marking the transfer. Their partner’s code becomes 1383M, giving them £13,830 and a tax saving of up to £252 a year.

What are the most common tax code mistakes?

Staying on BR after leaving a second job. You end up paying 20% on all your pay with no allowance. Tell HMRC the job has ended.
Old benefits still in the code. If you gave back a company car or your employer stopped paying medical insurance, the deduction can linger for a year or more.
Assuming the emergency code corrects itself. It usually does once HMRC has your P45 or starter checklist, but if it has not changed after two months, chase it.
Reading the number as pounds. 1257 means £12,570, not £1,257.

See individual guides for the 200 most common tax codes.

Frequently asked questions

What does tax code 1257L mean?

1257L is the standard tax code for 2026/27. The number times 10 is your tax-free personal allowance of £12,570, and the L means you get the basic personal allowance with no adjustments. Most people with one job and no company benefits have this code.

Why does my tax code end in W1, M1 or X?

Those markers mean an emergency, non-cumulative code. Each payday is taxed on its own without looking at what you have earned or paid so far in the year. It usually happens when you start a job without a P45. HMRC normally replaces it with a cumulative code within a few weeks and any overpaid tax is refunded through your pay.

What is a K tax code?

A K code means your untaxed income or benefits are worth more than your personal allowance, so instead of an allowance an amount is added to your taxable pay. K475 adds £4,750 a year. K codes are common for people with a company car, medical insurance or a state pension paid alongside a private pension.

How do I know if my tax code is wrong?

Compare it with the standard code and ask why it differs. If you have one job, no benefits and no untaxed income, you should be on the standard code. HMRC's Personal Tax Account shows how your code was worked out. If it is wrong, you can update your details online or call HMRC on 0300 200 3300.

What does BR mean on my payslip?

BR stands for basic rate. All pay from that job or pension is taxed at 20% with no personal allowance. It is correct for a second job when your first job uses your full allowance, but wrong if it is your only income. If so, contact HMRC to have it changed and any overpayment refunded.