National Insurance UK 2026/27 — Rates, Classes, Credits and State PensionNational Insurance Rates 2025/26 Quick Reference
Current NI rates and thresholds. Employee, employer, and self-employed National Insurance contributions — what you pay and when.
A quick reference to National Insurance rates and thresholds for 2025/26.
For the wider cluster covering full NI guides, credits, employer costs and records, use the main National Insurance hub.
National Insurance is the second-largest tax most employees pay, costing a typical £35,000 earner around £1,794 per year. Unlike income tax, NI applies only to earnings from employment and self-employment — not to savings interest, dividends, rental income, or pension income. It also stops entirely when you reach State Pension age.
For employees, NI is deducted automatically through PAYE alongside income tax. Self-employed people pay lower Class 4 rates through Self Assessment. The employer also contributes a significant additional 15% on top of your wages above £5,000 — an invisible cost that accounts for a large share of why employing people is expensive.
Read more: See our Take Home Pay guide for a complete overview of this topic.
Employee NI (Class 1)
Rates 2025/26
| Earnings | NI Rate |
|---|
| Below £12,570 | 0% |
| £12,570 - £50,270 | 8% |
| Above £50,270 | 2% |
Thresholds
| Threshold | Weekly | Annual |
|---|
| Lower Earnings Limit | £123 | £6,396 |
| Primary Threshold | £242 | £12,570 |
| Upper Earnings Limit | £967 | £50,270 |
What the Thresholds Mean
| Threshold | Significance |
|---|
| Lower Earnings Limit | Qualify for NI credits |
| Primary Threshold | Start paying NI |
| Upper Earnings Limit | Rate drops to 2% |
Employer NI (Class 1)
Rates 2025/26
| Earnings | Employer Rate |
|---|
| Below £5,000 | 0% |
| Above £5,000 | 15% |
Employment Allowance
| Allowance | Details |
|---|
| Amount | £10,500 |
| For employers | Reduces NI bill |
| Small business | May pay no employer NI |
Self-Employed NI
Class 4 NI 2025/26
| Profits | Rate |
|---|
| Below £12,570 | 0% |
| £12,570 - £50,270 | 6% |
| Above £50,270 | 2% |
Class 2 NI
| Status | Details |
|---|
| 2024/25 onwards | Abolished for most |
| No longer pay | Separate Class 2 |
| Still get credits | For State Pension |
NI Calculation Examples
Employee on £30,000
| Band | Calculation | NI |
|---|
| First £12,570 | No NI | £0 |
| £12,570-£30,000 | £17,430 × 8% | £1,394 |
| Total | | £1,394 |
Employee on £60,000
| Band | Calculation | NI |
|---|
| First £12,570 | No NI | £0 |
| £12,570-£50,270 | £37,700 × 8% | £3,016 |
| £50,270-£60,000 | £9,730 × 2% | £195 |
| Total | | £3,211 |
Self-Employed on £40,000 Profit
| Band | Calculation | NI |
|---|
| First £12,570 | No NI | £0 |
| £12,570-£40,000 | £27,430 × 6% | £1,646 |
| Total | | £1,646 |
Quick Lookup Table
Employee NI by Salary
| Salary | Annual NI | Monthly NI |
|---|
| £15,000 | £194 | £16 |
| £20,000 | £594 | £50 |
| £25,000 | £994 | £83 |
| £30,000 | £1,394 | £116 |
| £35,000 | £1,794 | £150 |
| £40,000 | £2,194 | £183 |
| £45,000 | £2,594 | £216 |
| £50,000 | £2,994 | £250 |
| £60,000 | £3,194 | £266 |
| £75,000 | £3,494 | £291 |
| £100,000 | £3,994 | £333 |
Combined Tax & NI
Looking at income tax and NI together reveals the true marginal rate on earnings. A basic-rate taxpayer earning between £12,570 and £50,270 pays 20% income tax plus 8% NI — a combined 28% on each additional pound. At the higher rate (above £50,270), the NI drops to 2%, giving a combined 42%. The worst band is between £100,000 and £125,140, where the personal allowance taper creates a 60% effective income tax rate, plus 2% NI — a combined 62%.
Total Deductions
| Salary | Income Tax | NI | Total | Net |
|---|
| £25,000 | £2,486 | £994 | £3,480 | £21,520 |
| £35,000 | £4,486 | £1,794 | £6,280 | £28,720 |
| £50,000 | £7,486 | £2,994 | £10,480 | £39,520 |
| £75,000 | £17,486 | £3,494 | £20,980 | £54,020 |
Marginal Rate Combined
| Earnings Level | Tax | NI | Combined |
|---|
| Up to £12,570 | 0% | 0% | 0% |
| £12,570-£50,270 | 20% | 8% | 28% |
| £50,270-£100,000 | 40% | 2% | 42% |
| £100k-£125,140 | 60%* | 2% | 62%* |
| Above £125,140 | 45% | 2% | 47% |
*Due to Personal Allowance reduction
NI Credits
When You Get Credits
| Situation | Credits Given |
|---|
| Child Benefit claimed | Yes |
| Unemployed (JSA) | Yes |
| Sick (ESA) | Yes |
| Carer | Yes |
| Earning £6,396-£12,570 | Yes |
Why Credits Matter
| For | Importance |
|---|
| State Pension | Need 35 years |
| Qualifying years | From NI paid or credits |
| Gaps | May affect pension |
Special Cases
Multiple Jobs
| Situation | How It Works |
|---|
| Two jobs | NI calculated per job |
| Both above threshold | Pay NI on each |
| May overpay | Can reclaim |
Directors
| Director NI | Calculation |
|---|
| Different method | Annual earnings period |
| Not weekly/monthly | To avoid manipulation |
| Situation | NI |
|---|
| Under 16 | None |
| 16 to State Pension age | Normal rules |
| Over State Pension age | None |
Summary
| Category | 2025/26 Main Rate |
|---|
| Employee | 8% |
| Self-employed | 6% |
| Employer | 15% |
| Key Thresholds | Annual |
|---|
| Start paying | £12,570 |
| Rate drops (employee) | £50,270 |
| Rate drops (self-employed) | £50,270 |
| Quick Reference | Rate |
|---|
| £12,570-£50,270 (employee) | 8% |
| Above £50,270 (employee) | 2% |
| £12,570-£50,270 (self-employed) | 6% |
| Above £50,270 (self-employed) | 2% |
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