UK National Insurance Rates and Thresholds 2026-27 — Complete Guide

National Insurance (NI) is a separate tax from income tax, funding the NHS, state pension, and welfare benefits. This guide explains all NI rates and thresholds for the 2026-27 tax year.

What Does National Insurance Fund?

• State Pension — you need 35 qualifying years of NI contributions for the full new State Pension (£221.20/week in 2026-27)
• NHS — healthcare
• Jobseeker's Allowance and other benefits
• Statutory Sick Pay, Maternity/Paternity Pay

Class 1 NI (Employees)

Employee Contributions (Primary)

Income Band	NI Rate	Notes
Up to £12,570/year	0%	Primary Threshold
£12,571 – £50,270/year	12%	Standard employee rate
Above £50,270/year	2%	Upper Earnings Limit

Key thresholds:

• Primary Threshold: £242/week, £1,048/month, £12,570/year
• Upper Earnings Limit: £967/week, £4,189/month, £50,270/year

Employer Contributions (Secondary)

Income Band	NI Rate
Up to £9,100/year (£175/week)	0% (Employment Allowance may apply)
Above £9,100/year	13.8%

Note: The employer Secondary Threshold is lower than the employee threshold. Employers pay NI on a wider income band.

Employment Allowance

Small businesses can claim up to £10,500 Employment Allowance off their employer NI bill (2026-27). Most employers with a NI bill under £100,000 qualify.

Class 2 NI (Self-Employed) — Small Profits Threshold

• Rate: £3.45/week (if profits > £12,570)
• Small Profits Threshold: £6,725
• If profits are £6,725 – £12,570: You can pay voluntarily to protect state pension entitlement

Class 4 NI (Self-Employed) — Profit-Based

Profit Band	Rate
Up to £12,570	0%
£12,571 – £50,270	9%
Above £50,270	2%

Self-employed people pay Class 4 NI in addition to income tax on the same profits.

NI Examples

Employee earning £30,000

• Income below £12,570: £0
• Income £12,571 – £30,000 (£17,430): 12% = £2,091.60/year (£174.30/month)

Employee earning £60,000

• Income £12,571 – £50,270 (£37,700): 12% = £4,524
• Income £50,271 – £60,000 (£9,730): 2% = £194.60
• Total NI: £4,718.60/year (£393.22/month)

Self-employed earning £50,000 profit

• Class 4 NI on £12,571 – £50,270 (£37,700): 9% = £3,393
• Class 2 NI: £3.45 × 52 = £179.40
• Total NI: £3,572.40/year

National Insurance and the State Pension

To receive the full new State Pension (£221.20/week in 2026-27), you need 35 qualifying years of NI contributions or credits.

Checking Your NI Record

Access your NI record at gov.uk/check-national-insurance-record to see:

• How many qualifying years you have
• Years with gaps
• Whether you can fill gaps by paying voluntary contributions

Voluntary Contributions (Class 3)

If you have NI gaps, you can pay Class 3 contributions to fill them:

• Rate: £17.45/week
• This can significantly increase your state pension

Key Differences from Income Tax

Feature	Income Tax	National Insurance
Threshold	£12,570	£12,570 (employee)
Top rate	45%	2%
Self-employed rate	Same as employed	Lower (9% vs 12%)
Pension contributions	Reduce NI (via salary sacrifice)	Also reduced
Applies to	All income	Employment/profit only

Reducing Your National Insurance

Salary Sacrifice

Salary sacrifice for pensions, cycle-to-work, childcare, or electric cars reduces your gross salary before NI is calculated — saving both income tax AND National Insurance.

Example: Salary sacrifice £5,000 into pension

• NI saving: £5,000 × 12% = £600/year
• Income tax saving (basic rate): £5,000 × 20% = £1,000/year
• Total saving: £1,600/year

Marriage Allowance

While this only affects income tax directly, reducing taxable income through all available reliefs maximises overall savings.

Frequently Asked Questions

Does National Insurance affect my state pension?

Yes. Each year you pay NI (or receive NI credits) counts as a qualifying year toward your state pension. You need 35 qualifying years for the full new state pension.

Do I pay NI on all income?

No. NI applies only to employment income and self-employment profits — not to rental income, savings interest, dividends, or pension income.

How does NI compare to other countries?

UK NI rates are moderate compared to similar countries. For example, France has social security contributions of 28%+, while Singapore's CPF is 20% employee + 17% employer.

What is a P60 and how does it relate to NI?

Your P60 (issued by your employer after the tax year) shows your total NI contributions for the year. Keep this document as it may be needed for state pension or benefit claims.

Calculate Your National Insurance

Use our UK Tax Calculator to see your income tax AND National Insurance together, with your full take-home pay calculation.

This guide covers the 2026-27 tax year rates as announced. Always verify current rates at gov.uk/national-insurance.