Tax code 1257L explained
1257L is the tax code GOV.UK says is used for most people with one job or pension. The number 1257 means £12,570 of tax-free pay for the year, the standard Personal Allowance, and L means you're entitled to that standard allowance. Your employer spreads it across the year, so on monthly pay about £1,048 a month is tax-free.
See income tax, National Insurance and take-home pay for your salary on code 1257L.
Work out take-home on 1257LWhat the number and the letter mean
HMRC starts from your tax-free Personal Allowance, takes off anything that needs to be taxed through your pay, such as a company benefit, and replaces the last digit with a letter. £12,570 becomes 1257, and L says you get the standard allowance.
| Paid | Tax-free pay each period |
|---|---|
| Monthly | £1,048.26 |
| Weekly | £241.92 |
| Yearly | £12,579 (the payroll tables round up slightly from £12,570) |
Worked example: £3,000 a month
- Pay for the month: £3,000.00.
- Less tax-free pay for month 1: £1,048.26, leaving £1,951.74, which PAYE rounds down to £1,951.
- Income tax at 20%: £390.20.
- Employee National Insurance: 8% of the £1,952 above the £1,048 monthly threshold, £156.16.
- Take-home before any pension or other deductions: £2,453.64.
Over a full year on £36,000, that is £4,684.00 of income tax and £1,873.92 of National Insurance.
When your code isn't exactly 1257L
- A lower number, such as 1100L, means some allowance is used to tax a benefit or other income.
- S1257L uses Scottish rates; C1257L uses Welsh rates.
- 1257L W1, M1 or X is an emergency basis: each payment is taxed on its own.
- 1257M or 1257N means Marriage Allowance has moved 10% of an allowance between partners.
Your code comes from HMRC. If it looks wrong, check it in your HMRC online account or app; your employer can't change it.
Questions
Is 1257L the right tax code?
For most people with one job or pension and no taxable benefits, yes. If you have a second job, a company car or untaxed income, HMRC may give you a different code.
How much can I earn on 1257L before paying tax?
£12,570 a year, or about £1,048 a month, before income tax. National Insurance starts from £1,048 a month (£242 a week) in 2026/27.
Sources
- GOV.UK — Tax codes: what your tax code means
- HMRC — Rates and thresholds for employers 2026 to 2027
- HMRC — Specification for PAYE Tax Table Routines, version 24.0
Official sources checked 24 September 2026. This guide explains how pay documents work; it is not tax or legal advice.