Last updated: May 2026 · 2026/27 tax year figures
What does the S prefix mean on a tax code?
The S in tax codes like S1257L, S1000T, or SBR tells your employer to use Scottish Income Tax rates when calculating your PAYE deduction each pay period. Scotland sets its own income tax rates and bands through the Scottish Parliament — currently six bands compared to three in England, Wales and Northern Ireland.
The S prefix changes only your income tax calculation. Your National Insurance, student loan repayments, and pension deductions are unaffected — these are UK-wide.
Who receives an S tax code?
You get an S prefix if Scotland is your main place of residence during the tax year. Specifically:
- You live in Scotland for more of the tax year than anywhere else in the UK
- HMRC has your registered address as a Scottish postcode
- You have updated your address with HMRC or your employer has reported a Scottish address
Where you work does not determine your tax residency — only where you live. A person living in Edinburgh but working in London pays Scottish Income Tax. A person living in London but working in Edinburgh pays English rates.
How S codes affect your take-home pay in 2026/27
Scotland has six income tax bands in 2026/27:
- Starter Rate (19%): £12,570 – £15,397 — cheaper than England's 20%
- Basic Rate (20%): £15,397 – £27,491 — same as England
- Intermediate Rate (21%): £27,491 – £43,662 — 1% more than England
- Higher Rate (42%): £43,662 – £75,000 — 2% more than England, starts £6,608 earlier
- Advanced Rate (45%): £75,000 – £125,140 — 5% more than England
- Top Rate (48%): Above £125,140 — 3% more than England
What to do if you have the wrong S prefix
If you have an S code but live in England (or Wales/NI): You are paying too much income tax. Contact HMRC on 0300 200 3300 or update your address at gov.uk/personal-tax-account. HMRC will issue a corrected code to your employer. You should receive a refund of the overpaid tax in your next payslip or via your end-of-year tax calculation (P800).
If you live in Scotland but don't have an S prefix:You are paying less income tax than required. Update your address with HMRC. You will eventually owe the difference — it's better to correct it proactively.
Common S tax codes explained
- S1257L — Scottish taxpayer with the standard personal allowance (£12,570). Correct for most Scottish employees with one job.
- SBR — Scottish taxpayer with no personal allowance. Basic Rate on all earnings. Usually for a second job.
- SD0 — Scottish taxpayer with all earnings taxed at Higher Rate (42%). Usually for a second job where the Basic Rate band is fully used.
- S0T — Scottish taxpayer with no personal allowance applied. Emergency basis.
- S1257L M1 — Scottish taxpayer on Month 1 non-cumulative emergency basis.
Official guidance: GOV.UK Scottish Income Tax and Scottish Government Tax Policy.