Tax Code SD2 Explained
All income from this source taxed at the Scottish advanced rate of 45% (introduced 2024-25, £75,001–£125,140 band).
At a glance — SD2
- Personal Allowance
- N/A
- Region
- UK-wide (rUK / Wales)
- Cumulative?
- Yes
- Code type
- Flat-rate / special
What does SD2 mean?
How much tax will you pay on SD2?
Annual income tax HMRC would deduct on 2025-26 rates for a range of salaries, assuming the full year on this code. National Insurance is additional and the same across the UK.
| Annual salary | Scotland — income tax | Effective rate | Take-home (pre-NI) |
|---|---|---|---|
| £20,000 | £0 | 0.0% | £20,000 |
| £30,000 | £0 | 0.0% | £30,000 |
| £50,000 | £0 | 0.0% | £50,000 |
| £80,000 | £0 | 0.0% | £80,000 |
| £100,000 | £0 | 0.0% | £100,000 |
For Scottish / rUK side-by-side, or to model your own salary, student loan and pension contributions, use the tax code checker.
Should you be on tax code SD2?
Related tax codes
S1257L — Scottish Standard
The Scottish version of the standard code. Same £12,570 allowance, but Scottish tax bands (19% / 20% / 21% / 42% / 45% / 48%) apply.
SBR — Scottish Basic Rate
Scottish equivalent of BR — all income from this source taxed at 20% with no Personal Allowance.
SD0 — Scottish Intermediate Rate
All income from this source taxed at the Scottish intermediate rate of 21%.
SD1 — Scottish Higher Rate
All income from this source taxed at the Scottish higher rate of 42%.
Check your own code: enter any HMRC tax code into the free tax code checker — it decodes the letters and number, shows your Personal Allowance, and estimates your take-home using 2025-26 or 2026-27 rates.
For the full plain-English guide to every UK tax code letter, prefix and suffix, see UK Tax Codes Explained 2026-27.
Sources
Tax code rules from gov.uk/tax-codes. Income tax rates from HMRC. Effective tax figures computed live from central configuration — correct for 2025-26.