National Insurance Calculator 2026-27
The 2026-27 tax year sees no changes to employer or employee NI rates and thresholds. The employer NI rate remains at 15% above the secondary threshold of £5,000. Employee NI is unchanged: 8% between £12,570 and £50,270, and 2% above. Class 2 NI for the self-employed is abolished from April 2026. NI is a UK-wide tax applying equally in England, Scotland, Wales, and Northern Ireland.
Rates correct for 2026-27 · Reviewed by the Richard Ross · Last updated April 2026
2026-27 at a glance
- ›Employee NI: 8% on earnings £12,571–£50,270 (unchanged)
- ›Employee NI: 2% above £50,270 (unchanged)
- ›Employer NI: 15% above £5,000 secondary threshold (unchanged from 2025-26)
- ›Employee PT (primary threshold): £12,570/year (frozen)
- ›Employee UEL (upper earnings limit): £50,270/year (frozen)
- ›Class 2 NI for self-employed: abolished (was £3.45/week)
- ›Class 4 NI for self-employed: 6% on profits £12,570–£50,270; 2% above (unchanged)
Employee NI (Class 1)
| Earnings | Threshold | Rate |
|---|---|---|
| Below Lower Earnings Limit | Up to £6,396/yr | 0% (but earns NI record) |
| LEL to Primary Threshold | £6,397 – £12,570/yr | 0% |
| Primary Threshold to Upper EL | £12,571 – £50,270/yr | 8% |
| Above Upper Earnings Limit | Over £50,270/yr | 2% |
Employer NI (Class 1)
| Earnings | Threshold | Rate |
|---|---|---|
| Below Secondary Threshold | Up to £5,000/yr | 0% |
| Above Secondary Threshold | Over £5,000/yr | 15% |
Calculate your NI for 2026-27
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How National Insurance is calculated in 2026-27
Employer NI rates and thresholds are unchanged for 2026-27. The rate remains at 15% above the secondary threshold of £5,000. No changes were made to employer NI in the April 2026 Budget. For a typical employee earning £30,000, employer NI remains at £3,750 per year (15% on earnings above £5,000). Class 2 NI, previously £3.45 per week for self-employed people, is abolished entirely from April 2026. Employee NI rates and thresholds are unchanged.
How employee NI is calculated
Employee Class 1 NI is calculated on weekly or monthly pay. Annually, NI of 8% applies to earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270). Above the UEL, only 2% NI applies. Below the lower earnings limit (£6,396), no NI is due and no NI record is built. Between the LEL and the primary threshold, no NI cash is paid but the year still counts toward the 35-year NI record needed for the full new State Pension.
Worked example: employee NI on a £30,000 salary
Employee NI on £30,000 in 2026-27:
- Earnings up to £12,570 (primary threshold): £0 NI
- £12,571 to £30,000 (£17,430) at 8%: £1,394.40
- Total employee NI: £1,394.40/year (£116.20/month)
Employer NI: 15% on earnings above £5,000 = £3,750.00
Total cost to employer: approximately £33,750 including employer NI. See also: income tax on £30,000 and full take-home pay.
How employer NI is calculated
Employer Class 1 NI is a tax on employment paid by the employer, not deducted from the employee's wages. For 2026-27, the rate is 15% on earnings above the secondary threshold of £5,000. There is no upper limit — employer NI continues at the same rate on all earnings above the threshold. This is a significant cost on top of gross salary that affects hiring decisions and total compensation budgets.
NI on bonuses and overtime
Bonuses and overtime are subject to NI at the same rates as regular pay. A bonus is added to your total earnings for the year, and NI is calculated on the combined amount. If your total earnings (salary plus bonus) exceed the upper earnings limit of £50,270, the portion above that limit attracts NI at 2% rather than 8%. Both income tax and NI apply to bonuses — use the bonus tax calculator to see the combined deduction.
Self-employed NI: Class 4 and Class 2
Self-employed individuals pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI (previously £3.45 per week) is abolished from April 2026. State pension entitlement for the self-employed is preserved through the Class 4 NI record. Self-employed NI is collected through Self Assessment rather than PAYE. Contractors should check their IR35 status — inside IR35, Class 1 employee NI applies to the full deemed salary instead.
NI record and State Pension
Your NI record determines your entitlement to the State Pension and contributory benefits. You need 35 qualifying years to receive the full new State Pension. A qualifying year is one in which you earn above the lower earnings limit (£6,396) and make or are credited with NI contributions. You stop paying employee NI at State Pension age (currently 66), but earnings between the LEL and primary threshold still count toward your record even though no cash NI is deducted. Student loan repayments are a separate deduction collected alongside NI via PAYE.
NI is UK-wide
Unlike income tax, National Insurance is not devolved. The same rates and thresholds apply in England, Scotland, Wales, and Northern Ireland. Scottish taxpayers pay the same NI as their counterparts in England on identical earnings — dividends and capital gains are not subject to NI regardless of jurisdiction.
Sources: HMRC — National Insurance rates and categories (gov.uk), HMRC — How much NI you pay (gov.uk)
Frequently asked questions
What is the employee National Insurance rate for 2026-27?
8% on earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270), and 2% on earnings above £50,270. Employee NI rates are unchanged from 2025–26.
What changed in employer National Insurance for 2026-27?
Employer NI rates and thresholds are unchanged for 2026-27. The rate remains at 15% above the secondary threshold of £5,000. No changes were made to employer NI in the April 2026 Budget.
Is Class 2 NI abolished in 2026-27?
Yes — Class 2 National Insurance (previously £3.45 per week for self-employed people) is abolished from April 2026. Self-employed people continue to pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above. State pension entitlement for the self-employed is preserved through the Class 4 NI record.
Is National Insurance different in Scotland for 2026-27?
No — NI is a UK-wide tax. Scottish taxpayers pay the same 8%/2% employee NI rates and the same employer NI rate of 15% as taxpayers elsewhere in the UK. Only income tax varies by jurisdiction in the UK.
What is the NI threshold freeze impact for 2026-27?
Employee NI thresholds remain frozen at their 2022 levels — the primary threshold at £12,570 and the upper earnings limit at £50,270. As wages grow with inflation, more earnings fall into the 8% band each year, increasing NI bills without any formal rate change. This fiscal drag is confirmed through to at least April 2028.
How much NI do I pay on a £30,000 salary in 2026-27?
On a £30,000 salary: no employee NI on the first £12,570. 8% on earnings from £12,571 to £30,000 — that is £17,430 at 8% = £1,394.40 per year (£116.20 per month). Your employer separately pays 15% on earnings above £5,000, adding approximately £3,750 to their employment cost.
Do I pay National Insurance on a bonus in 2026-27?
Yes. Bonuses are treated as earnings for NI purposes and attract the same Class 1 rates as regular pay — 8% between the primary threshold and the upper earnings limit, and 2% above. A bonus that pushes your total earnings above £50,270 means the portion above that threshold is charged at 2% rather than 8%.
How does National Insurance differ from income tax?
Income tax is charged on all taxable income (salary, pensions, rental income, dividends) at progressive rates. National Insurance is charged only on earned income — primarily employment earnings and self-employment profits. Dividends and capital gains do not attract NI. NI rates are UK-wide; income tax rates differ in Scotland.
Does salary sacrifice reduce my National Insurance in 2026-27?
Yes. Salary sacrifice reduces your gross salary before NI is calculated. If you sacrifice £5,000 into a pension, you save £400 (8% of £5,000) in employee NI. Your employer saves 15% (£750) in employer NI on the same amount. This NI saving is the key advantage of salary sacrifice over personal pension contributions.
What happens to NI when I reach State Pension age?
Employees stop paying Class 1 National Insurance at State Pension age (currently 66), even if they continue working. Employers still pay employer NI on your earnings at the standard rate. Self-employed workers stop paying Class 4 NI from the start of the tax year in which they reach State Pension age.
Related calculators
This calculator provides estimates only. Rates are based on published HMRC figures for 2026-27. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.