In SQL Server, choosing the right transaction isolation level is critical for balancing consistency, concurrency, and performance. While higher isolation levels reduce concurrency issues like dirty reads and phantom rows, they also increase locking and blocking. On the other hand, lower isolation levels improve performance but may allow data anomalies. As a DBA or developer, knowing when to use each isolation type and understanding it. This will help you design stable, efficient systems that match your workload needs.

Figure-1: Picking the Right Isolation Level
READ UNCOMMITTED (NOLOCK)
- What it does: Allows dirty reads (you may see uncommitted data).
- When to use: When performance is more important than accuracy, e.g., quick reporting on huge tables where exact accuracy is not critical.
- Example: A reporting dashboard that shows near real-time sales orders. Even if some rows are not committed yet, you are okay with slightly incorrect numbers.
READ COMMITTED (Default in SQL Server)
- What it does: Prevents dirty reads, but allows non-repeatable reads and phantom rows.
- When to use: For most OLTP applications where correctness matters but locking overhead must be reasonable.
- Example:A banking app that checks your balance before a withdrawal. It will not read uncommitted transactions, but balance might still change between two queries.
REPEATABLE READ
- What it does: Prevents dirty reads + non-repeatable reads, but still allows phantom rows.
- When to use: When you need consistent values during a transaction but do not care about new inserts.
- Example: A warehouse system verifying stock before shipping. If you check an item’s quantity multiple times during one transaction, you want the same value — even if another user updates it.
SERIALIZABLE
- What it does: Highest isolation; prevents dirty reads, non-repeatable reads, and phantom rows. Basically, transactions behave as if run one after another.
- When to use: For critical transactions where accuracy is more important than concurrency.
- Example: A train ticket booking system where two people should never book the same seat. Ensures no phantom seat reservations.
SNAPSHOT
- What it does: Uses row versioning (tempdb). Readers don’t block writers, and writers do not block readers. Gives you a consistent "snapshot" of data as it was at the start of your transaction.
- When to use: For reporting or long-running queries where you need consistent results without blocking OLTP operations.
- Example: A sales analyst runs a 10-minute query to calculate monthly revenue. With snapshot isolation, they get consistent numbers without blocking order inserts.
Concurrency side effects Vs Isolation Levels
Isolation level |
Dirty read |
Nonrepeatable read |
Phantom |
READ UNCOMMITTED |
Yes |
Yes |
Yes |
READ COMMITTED |
No |
Yes |
Yes |
REPEATABLE READ |
No |
No |
Yes |
SNAPSHOT |
No |
No |
No |
SERIALIZABLE |
No |
No |
No |
Table-1: Concurrency side effects Vs Isolation Levels
Rule of Thumb
- Reporting - SNAPSHOT (or READ UNCOMMITTED if accuracy does not matter).
- OLTP default - READ COMMITTED.
- Critical consistency - REPEATABLE READ / SERIALIZABLE.
- Maximum concurrency without blocking - SNAPSHOT.
Final Words
Transaction isolation levels are not a one-size-fits-all decision. The right choice depends on the business requirement, workload pattern, and tolerance for anomalies versus blocking. Read Uncommitted might be acceptable for quick reporting, while Serializable could be essential for financial transactions. By understanding the strengths, weaknesses, and practical use cases of each isolation type, DBAs can strike the right balance between performance and accuracy—ensuring the database works reliably under different workloads.
References
Going Further
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