Tax code D1 explained
All income taxed at 45% — second incomes for additional-rate taxpayers. 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 D1 means
D1 taxes all income from this source at the additional rate of 45%. No personal allowance applies (it's fully withdrawn above £125,140 anyway).
Who gets D1?
People earning over £125,140 in their main employment who have a second job, directorship or pension in payment.
What you'd pay on D1
| Salary | Income tax | Take-home* | vs standard 1257L |
|---|---|---|---|
| £22,000 | £9,900 | £11,346 | −£8,014 |
| £30,000 | £13,500 | £15,106 | −£10,014 |
| £40,000 | £18,000 | £19,806 | −£12,514 |
| £55,000 | £24,750 | £27,139 | −£15,318 |
| £80,000 | £36,000 | £40,389 | −£16,568 |
*After income tax and employee National Insurance, 2026/27 rates, England/Wales/NI bands.
What you should do
Verify your total income really does exceed £125,140. Large pension contributions or a drop in earnings can pull you back below the additional-rate threshold, making D1 too aggressive.
Frequently asked questions
What does tax code D1 mean?
All income taxed at 45% — second incomes for additional-rate taxpayers. D1 taxes all income from this source at the additional rate of 45%. No personal allowance applies (it's fully withdrawn above £125,140 anyway).
Is tax code D1 wrong?
Verify your total income really does exceed £125,140. Large pension contributions or a drop in earnings can pull you back below the additional-rate threshold, making D1 too aggressive.
Who gets tax code D1?
People earning over £125,140 in their main employment who have a second job, directorship or pension in payment.