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Identity Column Rollback

David Alcock figures out how identity columns behave when transactions get rolled back:

Identity columns are a very commonly used feature within tables in SQL Server. Basically when specified as an identity a column will automatically increment by the specified value; so if we have an identity increment of 1 and insert 5 rows they will automatically be numbered 1 to 5.
One cautionary measure with identities is that they don’t reset themselves when rows are deleted. If we delete rows 4 and 5 the next row will still be populated as identity 6. That’s fine, but what happens if we rollback an insert.

Read on for the answer.