National Insurance (NI) is a tax on earnings that builds your entitlement to the State Pension and some benefits. For 2026/27, employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270 a year, and 2% on anything above £50,270. The calculator above applies these thresholds to your salary so you can see your NI bill straight away.
The self-employed pay a different class, and there is no National Insurance at all on dividends or pension income. For employees, NI is usually collected automatically through PAYE.
How is National Insurance calculated in 2026/27?
Employees pay nothing on the first £12,570, then 8% up to £50,270, then 2% above that, as set out in HMRC's National Insurance guidance.
| Earnings band (2026/27) | Class 1 employee rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 to £50,270 | 8% |
| Over £50,270 | 2% |
How much National Insurance will I pay on £30,000?
On a £30,000 salary you pay nothing on the first £12,570 and 8% on the remaining £17,430, which is £1,394 of National Insurance for the year. It sits on top of your Income Tax, and the two together give your take-home pay.
How much National Insurance do the self-employed pay?
If you are self-employed you pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above £50,270, for 2026/27. Class 2 NI is no longer charged for most people, though you can pay it voluntarily to protect your State Pension record. Our guide to self-employed National Insurance covers the detail, and National Insurance explained walks through the wider system.
Do company directors pay National Insurance?
Directors pay Class 1 NI like other employees, but on an annual rather than monthly basis. Many keep their salary near the threshold and take the rest as dividends, which carry no NI. See how directors save on National Insurance, or speak to us through our tax advisory service.
Related guides and calculators
- National Insurance explained
- Self-employed National Insurance for 2026/27
- Income tax calculator
- Take-home pay calculator
Frequently asked questions
What is the National Insurance rate for 2026/27?
For 2026/27, employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year, and 2% on earnings above £50,270. You pay nothing on the first £12,570.
Do I pay National Insurance on dividends?
No. National Insurance only applies to earnings such as salary and self-employed profits. Dividends and pension income do not attract National Insurance, which is why directors often take a small salary plus dividends.
How much National Insurance do the self-employed pay?
For 2026/27 the self-employed pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above £50,270. Class 2 is no longer charged for most people, but can be paid voluntarily to protect State Pension entitlement.
At what salary do I start paying National Insurance?
Employees start paying Class 1 National Insurance on annual earnings above the £12,570 primary threshold for 2026/27. Below that you pay no National Insurance, though earning above the lower earnings limit still protects your State Pension record.
Does National Insurance count towards my State Pension?
Yes. National Insurance contributions build qualifying years towards your State Pension and some benefits. You generally need 35 qualifying years for the full new State Pension and at least 10 to receive any.