What tax code NT actually means
The unicorn: NT means no income tax is deducted from this income at all — NI still applies.
NT means No Tax: the employer or pension provider deducts zero income tax from this income, whatever it is. It's rare and always deliberate — HMRC issues it only where PAYE genuinely shouldn't collect tax, such as some non-UK residents taxed elsewhere under a double-taxation agreement, or certain insolvency arrangements. National Insurance is unaffected: on a £50,000 salary with NT you'd still pay £2,994.40 of NI.
- Personal allowance
- Not applicable — no tax is calculated at all
- Applies in
- All UK regions
- Calculation
- Not applicable
See this salary on a different tax code → (opens the main calculator pre-filled with NT)
What does NT mean?
NT switches income tax off entirely for one income source. It is not a bigger allowance or a nil band — payroll simply doesn't operate tax on the payments. HMRC reserves it for cases where collecting through PAYE would be wrong: typically non-residents whose earnings are taxable in another country under a treaty, and some individuals in formal insolvency arrangements where tax is collected through the arrangement instead.
Two things NT never does: it never touches National Insurance, which is charged on earnings in the normal way, and it never means the income is tax-free in the wider sense — if tax is due somewhere (another country, a Self Assessment return), it's still due. If NT appears on your payslip and you don't know why, treat it as an error to report rather than a windfall: tax not collected now is usually collected later, in one lump.
When you’ll see NT
- You're non-UK resident and a double-taxation agreement assigns the taxing rights elsewhere.
- You're within certain formal insolvency arrangements where HMRC collects outside PAYE.
- Specific niche cases HMRC handles individually — NT is never a default.
NT vs other common codes
| Code | Personal allowance | How income is taxed |
|---|---|---|
| 1257L | £12,570 | Standard bands after the allowance |
| BR | £0 | Flat 20% on everything |
| 0T | £0 | Normal bands from the first pound |
| D0 | £0 | Flat 40% on everything |
NT questions, answered
Related tax codes
1257L
The standard code for 2025/26 — a £12,570 tax-free personal allowance, applied evenly across the year.
Decode itEmergency tax (W1/M1/X)
Usually a 1257L code with a W1, M1 or X suffix — each payday taxed in isolation until HMRC confirms your details.
Decode itBR
Basic Rate on everything: 20% from the first pound, no personal allowance — normal for second jobs and pensions.
Decode it0T
Zero allowance, but normal bands: 20%, then 40%, then 45% — from the very first pound you earn.
Decode itScottish tax codes (S)
An S at the front of your code means Scottish rates: six bands from 19% to 48% in 2025/26.
Decode itK codes
The code that works in reverse: instead of tax-free pay, a K code adds to your taxable income.
Decode itNot sure this is the right code for you?
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Sources: tax codes — gov.uk · income tax rates · Scottish income tax