tax code definition
Definition of 'tax code'. tax code (tÃ¦ks kÉÊd) noun. 1. tax , British. (in the UK) a code consisting of numbers and letters, which indicates to an employer how much tax should be deducted from an employee's pay. The Inspector then sends you and your employer a Notice of Coding, which gives you your tax code and provides a full breakdown showing how it was worked out.