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 do I calculate National Insurance?
Take your annual salary, subtract the £12,570 primary threshold, and multiply what is left by 8% (up to £50,270). On a £35,000 salary in 2026/27 that is (£35,000 - £12,570) x 8% = £1,794.40 of employee NI for the year, about £149.53 a month. Any earnings above £50,270 are charged at just 2%. Our NI calculator above does this arithmetic for you and works weekly and monthly figures too.
What are the National Insurance rates for 2026/27?
For the 2026/27 tax year (6 April 2026 to 5 April 2027) the main rates are 8% and 2% for employees, 15% for employers and 6% and 2% for the self-employed, as published in gov.uk's rates and thresholds for employers 2026 to 2027.
| Type of NI (2026/27) | Threshold | Rate |
|---|---|---|
| Class 1 employee | Up to £12,570 (£242/week) | 0% |
| Class 1 employee | £12,571 to £50,270 (£967/week) | 8% |
| Class 1 employee | Over £50,270 | 2% |
| Class 1 employer (secondary) | Above £5,000 (£96/week) | 15% |
| Class 4 self-employed | £12,570 to £50,270 profits | 6% |
| Class 4 self-employed | Profits over £50,270 | 2% |
| Class 2 self-employed | Credited automatically at the small profits threshold | Voluntary at about £3.65/week |
These are the same figures HMRC's own tools use, so a good NI calculator should match the HMRC guidance on how much you pay to the penny.
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, which you can check with our income tax calculator, and the two together give your take-home pay. If you are repaying a student loan, that comes off as well; see how student loan deductions on your payslip work.
How much National Insurance does my employer pay?
Employers pay secondary Class 1 NI at 15% on your earnings above £5,000 a year for 2026/27. On a £35,000 salary your employer pays (£35,000 - £5,000) x 15% = £4,500, on top of your gross pay, not out of it. Eligible employers can knock up to £10,500 off their total bill with the Employment Allowance. Class 1A NI on benefits in kind is also 15%. If you run payroll yourself, our payroll service can take it off your plate.
Do the self-employed pay different National Insurance?
Yes. Instead of Class 1, the self-employed pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above £50,270, for 2026/27. Class 2 is no longer mandatory: it is credited automatically once profits reach the small profits threshold, protecting your State Pension record, and can be paid voluntarily at about £3.65 a week below that, per gov.uk's self-employed NI rates. 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.
How much National Insurance will I pay on £35,000?
On a £35,000 salary in 2026/27 you pay 8% on the £22,430 above the £12,570 threshold, which is £1,794.40 of employee National Insurance for the year, roughly £149.53 a month. Your employer separately pays £4,500 on top.
Why did my National Insurance go down in 2026?
The employee rate did not change in 2026. The main Class 1 rate was cut from 12% to 10% in January 2024 and to 8% from April 2024, and it is still 8% for 2026/27. If your NI fell recently, it is more likely a change in your pay or pension contributions.
How much National Insurance does my employer pay?
Employers pay secondary Class 1 National Insurance at 15% on an employee's earnings above £5,000 a year for 2026/27. Eligible employers can reduce their total bill by up to £10,500 using the Employment Allowance.