National Insurance rates for 2026/27 are 8% for employees on earnings between £12,570 and £50,270, dropping to 2% on earnings above that. Self-employed people pay 6% on profits in the same band. Neither rate has changed from 2025/26. On a £35,000 salary, you pay £1,794 in NI this year — on top of £4,486 in income tax.
For the wider cluster covering NI guides, credits, employer costs and records, use the main National Insurance hub.
National Insurance (NI) is effectively a second income tax, but one that most people pay less attention to than income tax. For a typical employee earning £35,000, NI costs around £1,794 per year — that’s over £149 per month coming off your pay before you see it. Unlike income tax, NI only applies to earned income: it doesn’t apply to savings interest, dividends, rental income, or pension payments, which is why higher earners with investment income often have a low effective NI rate.
The 2026/27 tax year brings no changes to employee NI rates, but employers saw a significant hike from October 2024 onward — a rise from 13.8% to 15%, and a drop in the threshold from £9,100 to just £5,000. This makes employing staff meaningfully more expensive, especially for lower-paid workers.
Read more: See our Take Home Pay guide for a complete overview of this topic.
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?
For employees, rates are unchanged from 2025/26 — the freeze on the Primary Threshold and Upper Earnings Limit continues, meaning wage growth quietly pushes more of your pay into the taxable bands each year (fiscal drag). The big 2026/27 story for NI remains the employer-side changes introduced in October 2024, which took full effect in the 2025/26 year and continue unchanged.
| 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. A key advantage of being self-employed from an NI perspective is that the rate is 6% (versus 8% for employees) on the main band, saving £754 per year on a £50,000 profit compared to employment. There’s also no employer NI on top. However, this is partially offset by the loss of employment rights and benefits. Class 2 NI (previously a flat £3.45/week) was abolished from April 2024, simplifying the self-employed NI system considerably.
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, but it does affect a business’s total cost of employing you. The October 2024 Budget was highly significant here: the rate rose from 13.8% to 15% and the secondary threshold dropped from £9,100 to £5,000, meaning employers now pay NI on earnings from £5,000 rather than £9,100. For a full-time employee on £25,000, employer NI jumped from around £2,191 to £3,000 per year — an extra £809 cost per employee. For industries with large lower-wage workforces (hospitality, retail, care), this had a material impact.
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 (worth £11,973 per year — £230.25 per week — in 2026/27). You need at least 10 qualifying years to receive any State Pension at all. The crucial point many people miss is that you don’t need to actually pay NI to build a qualifying year — you just need to earn above the Lower Earnings Limit (£6,396), or receive NI credits through benefits like Universal Credit, Child Benefit (for children under 12), or Carer’s Allowance. This matters a lot for people who take career breaks.
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 |