National Insurance Calculator UK 2026–27
Calculate your employee or self-employed National Insurance contributions for 2026–27 or 2026–27. Enter your annual salary or profit to see your total NI, a breakdown by earnings band, and optional employer NI.
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How National Insurance is calculated
Employee Class 1 National Insurance is charged on earnings above the primary threshold. While income tax is calculated separately using annual bands, NI is calculated on your weekly or monthly earnings — the annual figures used here are the equivalent annual thresholds.
Earnings thresholds for 2026–27
The lower earnings limit is £6,396 per year. Earnings between the lower earnings limit and the primary threshold (£12,570) attract 0% NI but count toward your NI record. The primary threshold is where contributions at the main 8% rate begin. The upper earnings limit is £50,270 — above this, the rate falls to 2%.
NI record and State Pension
Each year in which you earn above the lower earnings limit and make (or are credited with) NI contributions counts as a qualifying year for your NI record. You need 35 qualifying years to receive the full new State Pension (£241.30 per week in 2026–27). A minimum of 10 qualifying years is required to receive any State Pension. The rate changes each April under the triple lock guarantee.
Worked example: £55,000 salary in 2026–27
On a £55,000 salary, employee NI breaks down as follows. Earnings from £0 to £12,570: 0% NI (£0). Earnings from £12,570 to £50,270 (£37,700): 8% NI = £3,016. Earnings from £50,270 to £55,000 (£4,730): 2% NI = £94.60. Total employee NI: £3,110.60 per year (£259.22/month). Employer NI: (£55,000 − £5,000) × 15% = £7,500/year — paid by the employer on top, not deducted from take-home pay. Total employer cost: £62,500. Compare with a £35,000 salary: employee NI = (£35,000 − £12,570) × 8% = £1,794.40/year.
Class 1, Class 2, and Class 4 NI
This calculator covers Class 1 employee NI (deducted via PAYE) and Class 4 self-employed NI — self-employed workers pay Class 4 NI differently via Self Assessment. Class 4 NI is 6% on profits between £12,570 and £50,270, and 2% above. Class 2 NI was a flat weekly rate for the self-employed but is abolished from April 2026. Directors of limited companies who operate outside IR35 pay employee NI on salary in the same way as employees.
NI is also deducted on bonuses — the full bonus is subject to Class 1 NI at your marginal rate, which is why the effective tax rate on a bonus can feel higher than on regular pay. Similarly, student loan repayments are collected via PAYE alongside income tax and NI. Note that dividends and capital gains are not subject to National Insurance — only earned income attracts NI.
For a complete picture of what you keep after income tax and NI, see your full take-home pay including both deductions.
Frequently asked questions
What are the National Insurance rates for 2026–27?
For 2026–27, employees pay 8% NI on earnings between the primary threshold (£12,570/year) and the upper earnings limit (£50,270/year), and 2% on earnings above the upper earnings limit. Earnings below the primary threshold attract 0% NI, though earnings above the lower earnings limit (£6,396) still count toward your NI record. Self-employed Class 4 NI is 6% on profits between £12,570 and £50,270, and 2% above — Class 2 NI was abolished from April 2026.
How much National Insurance will I pay on a £40,000 salary?
On a £40,000 salary in 2026–27, you pay NI on earnings between £12,570 and £40,000 — a range of £27,430. At 8%, that is £2,194.40 per year in employee NI. You pay 0% on the first £12,570 and there is no earnings above the £50,270 upper earnings limit, so the 2% rate does not apply. Employer NI is separate and paid on top by your employer.
Does National Insurance vary between England, Scotland, Wales, and Northern Ireland?
No — National Insurance rates and thresholds are set by the UK government and are identical across all four nations. This is unlike income tax, where Scotland sets its own rates. The same thresholds and percentages apply regardless of where you live or work in the UK.
What is the difference between employee NI and employer NI?
Employee NI (Class 1) is deducted from your gross pay and shown on your payslip. Employer NI is a separate charge paid by your employer on top of your salary — it does not appear on your payslip and does not reduce your take-home pay directly. For 2026–27, employers pay 15% NI on earnings above £5,000 per year.
Do I pay National Insurance on a bonus?
Yes — bonuses are treated as earnings for National Insurance purposes and are subject to Class 1 employee NI at the same marginal rates as regular pay. If your total earnings (salary plus bonus) remain below the upper earnings limit (£50,270), NI is charged at 8% on the bonus. If the bonus pushes you above £50,270, the portion above that threshold is charged at 2%.
Do I stop paying NI when I reach State Pension age?
Yes — employees stop paying Class 1 National Insurance contributions when they reach State Pension age (currently 66), even if they continue working. Self-employed workers similarly stop paying Class 4 NI at that age.
Can I top up gaps in my National Insurance record?
Yes — you can pay voluntary Class 3 NI contributions to fill gaps in your record. The 2026–27 rate is £17.45 per week. Each qualifying year you buy adds approximately £6.17/week (around £320/year) to your state pension for life. HMRC allows you to fill gaps going back up to 6 years in most cases. Check your NI record and state pension forecast at gov.uk/check-state-pension.
How does salary sacrifice reduce my National Insurance?
Salary sacrifice reduces your contractual gross salary, which is the figure NI is calculated on. Every £1 sacrificed saves 8% employee NI (for earnings up to £50,270) in addition to income tax. A £200/month salary sacrifice saves £16/month in employee NI on top of the income tax saving — reducing the net cost of the sacrifice to approximately £144/month for a basic-rate taxpayer. Your employer also saves 15% employer NI on the sacrificed amount.
What is the Employment Allowance and who qualifies?
The Employment Allowance allows eligible employers to reduce their employer National Insurance bill by up to £10,500 per year (2026–27). It is claimed through payroll software and applies automatically until the allowance is used up. Most small businesses qualify, but it is not available to companies where the sole employee is also a director. It cannot reduce your employer NI below zero.
Is National Insurance deducted from pension income?
No — NI is only deducted from earned income (salary, wages, and self-employment profits). Pension income — whether from a workplace pension, personal pension, or the State Pension — is not subject to National Insurance. However, pension income above the personal allowance (£12,570) is subject to income tax in the normal way, collected via PAYE if the pension provider deducts tax at source.
Related calculators
Source: HMRC — National Insurance rates and categories, GOV.UK (gov.uk/national-insurance). GOV.UK — Check your State Pension forecast (gov.uk/check-state-pension). HMRC — Employment Allowance (gov.uk/claim-employment-allowance).
This calculator provides estimates only. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.