Two Jobs Tax Calculator
Having two jobs means navigating two sets of PAYE deductions. Your personal allowance can only be applied to one job, so your second job is typically taxed from the first pound at 20%.
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A common mistake is thinking the second job is taxed unfairly. In reality, your total tax is the same whether you earn £40,000 from one job or £20,000 from each of two jobs. What often goes wrong is incorrect tax codes.
Understanding how your two jobs interact helps you avoid surprises. Enter both salaries below to see your combined tax position.
Your Jobs
Job 1 (Main Job)
Usually includes your personal allowance (1257L)
Job 2 (Second Job)
Often BR (basic rate on all) or 0T (no allowance)
Common Tax Codes
- 1257L: Standard code with £12,570 allowance
- BR: Basic rate (20%) on all earnings
- D0: Higher rate (40%) on all earnings
- 0T: No personal allowance
Tax Breakdown
Combined Take-Home Pay
£42,000
After all deductions
Job 1 Tax
£0
£0/mo
Job 2 Tax
£0
£0/mo
Potential Underpayment
Tax Comparison
NI Note
National Insurance is calculated separately per job. Each job has its own NI threshold (£12,570). If both jobs pay under the threshold, you may pay no NI at all.
Understanding Tax with Multiple Jobs
Having two jobs doesn't mean paying more tax—but it does mean understanding how tax codes work to avoid temporary over- or under-payments. The key is that your personal allowance can only be used once.
How Tax Codes Work Across Multiple Jobs
Your personal allowance (£12,570 in 2026/27) is the amount you can earn tax-free. With two jobs:
- Main job: Usually gets your full allowance via a 1257L code
- Second job: Often gets a BR (basic rate) code—20% tax on everything
This seems harsh, but the maths works out. If your main job used your allowance, taxing the second job from the first pound is correct. The total tax across both jobs equals what you'd pay on combined income in one job.
Why Second Jobs Are Taxed Higher Initially
It's not actually "higher"—it's just that the tax-free portion was already applied elsewhere. Consider:
- Main job: £30,000 with 1257L code = £3,486 tax
- Second job: £10,000 with BR code = £2,000 tax
- Total: £5,486 on £40,000 combined income
- If you earned £40,000 in one job: also £5,486 tax
The result is identical. The second job just applies the basic rate because your allowance is already used.
Common Issues
- Emergency tax: New jobs often use 1257L M1/W1 (emergency) code until HMRC updates it
- Wrong allocation: If your higher-paying job doesn't have the allowance, you'll overpay temporarily
- Split allowance needed: If both jobs are part-time, you might want to split the allowance
- Higher rate complexity: If combined income exceeds £50,270, one job may need a D0 code
Frequently Asked Questions
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