What Does Tax Code 1257L Mean?

If you check your payslip, you will likely see a short alphanumeric code like 1257L. This is your Tax Code, and it tells your employer exactly how much tax to deduct from your salary.

For the 2025/26 tax year, 1257L remains the standard tax code for most employees in the UK.

Breaking Down "1257L"

• The Number (1257): This represents your Personal Allowance. Add a '0' to the end, and you get £12,570. This is the amount of money you can earn each year tax-free.
• The Letter (L): This means you are entitled to the standard tax-free Personal Allowance.

So, if you earn £30,000/year:

1. Tax-Free: The first £12,570 is yours to keep.
2. Taxable: You only pay income tax on the remaining £17,430.

Other Common Tax Codes

BR (Basic Rate)

This code stands for Basic Rate. It means all your income from this job is taxed at 20%.

• Why? Usually because it's a second job, or your Personal Allowance is used up by your main job.

D0 (Higher Rate)

All your income is taxed at 40%.

• Who? High earners with multiple income sources.

K Codes (e.g., K100)

This means you have negative tax-free allowance.

• Why? Usually because you have company benefits (like a company car) that are worth more than your £12,570 personal allowance. The number indicates how much extra taxable income is added to your salary.

M and N (Marriage Allowance)

• M: You have received 10% of your partner's allowance.
• N: You have transferred 10% of your allowance to your partner.

Checked Your Code?

If you think your tax code is wrong, you could be paying too much tax. You can check and update it via your Personal Tax Account on GOV.UK.

To see how a different tax code changes your net income, try adjusting the "Tax Code" field in our Salary Calculator.