Tax code · 2026/27

SBR means all of this income is taxed at 20%

Tax code SBR taxes every pound from this job or pension at the Scottish basic rate of 20%, with no tax-free allowance at all. It is normally used for a second job or second pension where your £12,570 personal allowance is already used up by your main income. On £10,000 from this source you would pay £2,000 in tax.

What does each part of SBR mean?

BR stands for basic rate. It is the most common code for a second job when your main job uses your full personal allowance.
If this is your only job, this code is almost certainly wrong and you should contact HMRC to have it corrected and any overpaid tax refunded.
The S prefix means you are a Scottish taxpayer, so Scottish income tax rates and bands apply to your earnings and pension income.

How much tax do you pay with code SBR?

The table shows income tax and take-home pay in 2026/27 for four salaries with code SBR, compared with the standard code S1257L. National Insurance is not affected by your tax code.

Salary	Tax with SBR	Tax on standard code	Take-home with SBR	Per month
£25,000	£5,000	£2,446	£19,006	£1,584
£35,000	£7,000	£4,501	£26,206	£2,184
£50,000	£10,000	£8,982	£37,006	£3,084
£75,000	£15,000	£19,482	£56,489	£4,707

On £35,000 the effective rate with SBR is 25.1%, against 18% on the standard code, a difference of £2,499 a year. Use the take-home pay calculator with your own salary, pension and student loan.

Frequently asked questions

Is tax code SBR correct for me?

SBR is normally correct only for a second job or second pension where your first source of income already uses your personal allowance. If SBR is on your only income, it is almost certainly wrong and you are overpaying tax.

How much tax do I pay on £35,000 with tax code SBR?

On £35,000 with code SBR income tax is £7,000 a year in 2026/27, leaving take-home pay of £26,206 (£2,184 a month) after National Insurance of £1,794. On the standard code it would be £4,501.

How do I change tax code SBR?

You cannot change it yourself; only HMRC can issue a new code. Update your details in your HMRC Personal Tax Account or call 0300 200 3300 with your National Insurance number and details of your income and benefits. HMRC sends the new code to your employer and any tax overpaid in the year is refunded through your pay.

What does the S prefix mean?

The S prefix means HMRC has recorded your main home as being in Scotland, so Scottish income tax rates and bands apply. This is decided by where you live, not where you work.