Tax

National Insurance Rates 2026/27 — Complete UK Guide

Full breakdown of National Insurance rates and thresholds for 2026/27 tax year. Employee, employer, and self-employed NI rates, plus worked examples showing how much you'll pay.

National Insurance funds your State Pension and other benefits. Here are the complete rates and thresholds for the 2026/27 tax year (6 April 2026 to 5 April 2027).

National Insurance Rates 2026/27 — Quick Reference

Employee NI (Class 1)

Earnings NI Rate
Up to £12,570/year 0%
£12,571 to £50,270/year 8%
Over £50,270/year 2%

Self-Employed NI (Class 4)

Profits NI Rate
Up to £12,570/year 0%
£12,571 to £50,270/year 6%
Over £50,270/year 2%

Employer NI (Class 1 Secondary)

Earnings NI Rate
Up to £5,000/year 0%
Over £5,000/year 15%

Key Thresholds 2026/27

Threshold Annual Monthly Weekly
Lower Earnings Limit (LEL) £6,396 £533 £123
Primary Threshold (PT) £12,570 £1,048 £242
Secondary Threshold (ST) £5,000 £417 £96
Upper Earnings Limit (UEL) £50,270 £4,189 £967
Upper Secondary Threshold (under 21) £50,270 £4,189 £967

What Changed from 2025/26?

Change 2025/26 2026/27
Employee NI rate 8% 8% (unchanged)
Self-employed NI rate 6% 6% (unchanged)
Primary Threshold £12,570 £12,570 (frozen)
Upper Earnings Limit £50,270 £50,270 (frozen)
Employer NI rate 13.8% 15% (increased)
Secondary Threshold £9,100 £5,000 (reduced)

Key change: Employer NI increased significantly in the October 2024 Budget. The rate rose from 13.8% to 15%, and the threshold dropped from £9,100 to £5,000. This doesn’t affect your take-home pay directly, but may impact wage growth and hiring.

How Employee NI Is Calculated

Example: £35,000 Salary

Step Calculation
Gross salary £35,000
Minus Primary Threshold £35,000 - £12,570 = £22,430
NI at 8% £22,430 × 8% = £1,794.40

Example: £60,000 Salary

Step Calculation
Gross salary £60,000
Earnings between PT and UEL £50,270 - £12,570 = £37,700
NI at 8% on this band £37,700 × 8% = £3,016
Earnings above UEL £60,000 - £50,270 = £9,730
NI at 2% on this £9,730 × 2% = £194.60
Total NI £3,210.60

Example: £100,000 Salary

Step Calculation
Gross salary £100,000
NI at 8% (£12,570 to £50,270) £37,700 × 8% = £3,016
NI at 2% (above £50,270) £49,730 × 2% = £994.60
Total NI £4,010.60

NI by Salary — Quick Lookup Table

Annual Salary Monthly NI Annual NI Effective Rate
£15,000 £16.20 £194.40 1.30%
£20,000 £49.53 £594.40 2.97%
£25,000 £82.87 £994.40 3.98%
£30,000 £116.20 £1,394.40 4.65%
£35,000 £149.53 £1,794.40 5.13%
£40,000 £182.87 £2,194.40 5.49%
£45,000 £216.20 £2,594.40 5.77%
£50,000 £249.53 £2,994.40 5.99%
£55,000 £259.20 £3,110.60 5.66%
£60,000 £267.55 £3,210.60 5.35%
£70,000 £284.22 £3,410.60 4.87%
£80,000 £300.88 £3,610.60 4.51%
£100,000 £334.22 £4,010.60 4.01%
£150,000 £417.55 £5,010.60 3.34%

Self-Employed National Insurance 2026/27

Self-employed people pay Class 4 NI on their taxable profits.

Class 4 Rates

Profit Band NI Rate
Up to £12,570 0%
£12,571 to £50,270 6%
Over £50,270 2%

Class 2 — Abolished But Credits Continue

Class 2 NI (previously £3.45/week) was abolished from April 2024. However, self-employed people with profits over £6,725 still automatically receive National Insurance credits for State Pension purposes — you just don’t pay separately for them anymore.

Self-Employed NI Examples

Annual Profit Class 4 NI
£15,000 £145.80
£20,000 £445.80
£30,000 £1,045.80
£40,000 £1,645.80
£50,000 £2,245.80
£60,000 £2,441.80
£80,000 £2,841.80
£100,000 £3,241.80

Employer National Insurance 2026/27

Employers pay NI on top of your salary — this doesn’t come out of your wages.

Employer NI Rates

Employee Earnings Employer NI Rate
Up to £5,000/year 0%
Over £5,000/year 15%

Employment Allowance

Small businesses can claim Employment Allowance of up to £10,500 per year, which reduces their employer NI bill. This means many small employers pay no employer NI at all.

Business Type Can Claim Employment Allowance?
Company with multiple employees Yes (up to £10,500)
Sole director company (no other employees) No
Household employing nanny/carer Yes
Charity Yes

Employer NI Examples

Employee Salary Employer NI (no allowance)
£25,000 £3,000
£35,000 £4,500
£50,000 £6,750
£75,000 £10,500
£100,000 £14,250

NI for Directors

Company directors have slightly different NI calculations. Instead of weekly/monthly thresholds, directors’ NI is calculated annually using the annual earnings period.

Director Earnings Calculation
Under £12,570 No NI
£12,571 to £50,270 8%
Over £50,270 2%

This prevents directors who pay themselves irregularly (large bonus months) from accidentally exceeding thresholds.

NI Categories and Letters

Your payslip shows an NI category letter. Most employees are Category A.

Category Who It Applies To
A Standard employees (aged 21+)
B Married women with reduced rate election (rare)
C Over State Pension age
H Apprentices under 25
J Deferment (multiple jobs)
M Under 21
Z Under 21, deferment

Reduced NI for Under 21s

Employees under 21 pay the same NI rates as other employees, but their employers pay 0% employer NI on earnings up to £50,270 (the Upper Secondary Threshold). This incentivises youth employment.

When NI Stops

Situation Do You Pay NI?
Reached State Pension age No — but employer still pays employer NI on your wages
On maternity/sick leave Depends on whether you receive pay
Unemployed No pay = no NI (but may get NI credits)
Self-employed but no profit No Class 4 NI due

Building State Pension Entitlement

You need 35 qualifying years of NI contributions to get the full State Pension. You build years by:

Method Threshold
Employed — earning over Lower Earnings Limit £6,396/year
Self-employed — profits over £6,725/year
Receiving NI credits (UC, child benefit, carer’s allowance) Automatic
Voluntary contributions (Class 3) £17.45/week

If you earn between the Lower Earnings Limit (£6,396) and Primary Threshold (£12,570), you pay no NI but still build State Pension entitlement.

Multiple Jobs and NI

If you have multiple jobs, each employer calculates NI separately based on what they pay you. This can mean:

  • You pay 8% NI at each job (even if combined earnings exceed £50,270)
  • You may overpay NI if your combined earnings are high

Deferring NI (Multiple Jobs)

If you expect to pay more than the annual maximum NI due to multiple jobs, you can apply to defer NI on your second job. HMRC will refund any overpayment after the tax year.

Situation Action
Two jobs, main job over £50,270 alone Apply to defer NI on second job
Two jobs, both under £50,270 Usually can’t defer
Employed + self-employed May be able to defer Class 4

NI vs Income Tax — Key Differences

Feature Income Tax National Insurance
Who pays Everyone over Personal Allowance Employees and self-employed over thresholds
Rates 20%, 40%, 45% 8%/2% (employees), 6%/2% (self-employed)
On savings interest Yes No
On dividends Yes No
On rental income Yes No
On pension income Yes No
Stops at State Pension age No Yes
Funds General government spending State Pension and benefits