Tax code D0 explained
All income taxed at 40% — usually a second job for higher earners. Here's exactly what it means for your payslip in 2026/27, who should have it, and what to do if it looks wrong.
What D0 means
D0 taxes every pound of this income at the higher rate of 40%, with no personal allowance. It exists so that second incomes for higher-rate taxpayers are taxed at the correct marginal rate.
Who gets D0?
People with a second job or pension whose main income already puts them in the higher-rate band (over £50,270). The main job uses your allowance and basic-rate band; the second source gets D0.
What you'd pay on D0
| Salary | Income tax | Take-home* | vs standard 1257L |
|---|---|---|---|
| £22,000 | £8,800 | £12,446 | −£6,914 |
| £30,000 | £12,000 | £16,606 | −£8,514 |
| £40,000 | £16,000 | £21,806 | −£10,514 |
| £55,000 | £22,000 | £29,889 | −£12,568 |
| £80,000 | £32,000 | £44,389 | −£12,568 |
*After income tax and employee National Insurance, 2026/27 rates, England/Wales/NI bands.
What you should do
Correct if your main income exceeds £50,270. If your total income has dropped below the higher-rate threshold — or this is now your only income — ask HMRC to review it; you could be overpaying significantly.
Frequently asked questions
What does tax code D0 mean?
All income taxed at 40% — usually a second job for higher earners. D0 taxes every pound of this income at the higher rate of 40%, with no personal allowance. It exists so that second incomes for higher-rate taxpayers are taxed at the correct marginal rate.
Is tax code D0 wrong?
Correct if your main income exceeds £50,270. If your total income has dropped below the higher-rate threshold — or this is now your only income — ask HMRC to review it; you could be overpaying significantly.
Who gets tax code D0?
People with a second job or pension whose main income already puts them in the higher-rate band (over £50,270). The main job uses your allowance and basic-rate band; the second source gets D0.