UK National Insurance Rates 2026/27
The complete reference for National Insurance contributions in the 2026/27 tax year. Covers all NI classes — employee (Class 1), employer, self-employed (Class 2 & 4), and voluntary (Class 3).
Updated for the 2026/27 tax year (6 April 2026 to 5 April 2027). Rates sourced from HMRC.
Class 1 Employee National Insurance 2026/27
Class 1 NI is automatically deducted from your salary by your employer through PAYE. You pay NI on earnings above the Primary Threshold.
| Earnings Band | Weekly | Annual | NI Rate |
|---|---|---|---|
| Below Primary Threshold | Up to £242/week | Up to £12,570 | 0% |
| Primary Threshold to Upper Earnings Limit | £242 – £967/week | £12,570 – £50,270 | 8% |
| Above Upper Earnings Limit | Over £967/week | Over £50,270 | 2% |
Example: On a £35,000 salary, you pay 8% NI on £22,430 (the amount between £12,570 and £35,000) = £1,794 per year, or £150 per month.
Class 1 Employer National Insurance 2026/27
Employers pay NI contributions on top of your salary. This is an additional cost of employment that does not appear on your payslip. From April 2025, the employer NI rate increased to 15% and the secondary threshold was reduced to £5,000.
| Earnings Band | Annual Threshold | Employer NI Rate |
|---|---|---|
| Below Secondary Threshold | Up to £5,000 | 0% |
| Above Secondary Threshold | Over £5,000 | 15% |
2026/27 employer NI increase
From April 2025, the employer NI rate rose from 13.8% to 15%, and the Secondary Threshold dropped from £9,100 to £5,000. For an employee earning £35,000, the employer now pays £4,500 in NI (up from £3,574 in 2024/25). A small business Employment Allowance of £10,500 offsets some of this cost for eligible employers.
Self-Employed National Insurance: Class 2 & Class 4
Self-employed people may pay Class 4 through Self Assessment. Compulsory Class 2 charges have been abolished, although Class 2 still matters for benefit records and voluntary contributions.
Class 2 NI (treated as paid or voluntary)
| Detail | Amount |
|---|---|
| Voluntary weekly rate | £3.65 |
| Voluntary annual cost (52 weeks) | £190 |
| Small Profits Threshold | £7,105 |
If profits are at or above the Small Profits Threshold, you are normally treated as having paid Class 2 without an actual charge. If profits are lower, you may choose voluntary Class 2 to help protect your contribution record.
Class 4 NI (profit-based)
| Profit Band | Annual Threshold | NI Rate |
|---|---|---|
| Below Lower Profits Limit | Up to £12,570 | 0% |
| Lower Profits Limit to Upper Profits Limit | £12,570 – £50,270 | 6% |
| Above Upper Profits Limit | Over £50,270 | 2% |
Self-employed NI is lower than employee NI: The Class 4 main rate is 6% compared to 8% for employees (Class 1). However, self-employed workers do not receive the same benefits (e.g. no statutory sick pay or maternity pay through NI contributions alone).
Class 3 Voluntary National Insurance
Class 3 is a voluntary NI contribution that you can pay to fill gaps in your National Insurance record. This is important if you need qualifying years for the State Pension but were not working or earning enough to be covered by Class 1 or Class 2 NI.
Weekly rate (2026/27)
£18.40
Annual cost
£956.80
You can typically buy back up to 6 years of missing NI contributions. Buying back years can be very cost-effective: each qualifying year adds approximately £6.58/week (£342/year) to your State Pension, meaning the £956.80 cost can pay for itself within a few years of retirement. Check your forecast first, because paying for a gap does not always increase your pension.
National Insurance Rate History: 2021–2026
NI rates have changed significantly in recent years. The employee main rate has fallen from 12% to 8% since 2023, while the employer rate increased to 15% in April 2025.
| Period | Employee (main) | Employee (upper) | Employer | Class 4 (main) | Class 4 (upper) | Notes |
|---|---|---|---|---|---|---|
| 2021/22 | 12% | 2% | 13.8% | 9% | 2% | |
| 2022/23 (Apr-Oct) | 13.25% | 3.25% | 15.05% | 10.25% | 3.25% | 1.25% Health & Social Care Levy added |
| 2022/23 (Nov-Mar) | 12% | 2% | 13.8% | 9% | 2% | Levy reversed |
| 2023/24 (Jan-Mar) | 10% | 2% | 13.8% | 8% | 2% | Cut from 12% to 10% mid-year |
| 2024/25 | 8% | 2% | 13.8% | 6% | 2% | Cut from 10% to 8% |
| 2026/27 Current | 8% | 2% | 15% | 6% | 2% | Employer NI rises to 15% |
The 12% → 8% employee NI cut
Between January 2024 and April 2024, the employee NI rate was cut from 12% to 10%, then to 8%. For a £35,000 salary, this saves approximately £897 per year compared to the old 12% rate. However, the April 2025 employer NI increase (13.8% to 15%) partially offsets the benefit, as businesses may pass the cost on through lower wage growth.
How National Insurance Differs from Income Tax
NI and income tax are both deducted from your pay, but they work differently.
| Feature | Income Tax | National Insurance |
|---|---|---|
| Tax-free threshold | £12,570 (Personal Allowance) | £12,570 (Primary Threshold) |
| Applies to pensions? | Yes | No |
| Applies to rental income? | Yes | No |
| Applies to savings interest? | Yes (above PSA) | No |
| Applies to dividends? | Yes (above £500 allowance) | No |
| Stops at State Pension age? | No | Yes |
| Scotland has own rates? | Yes (6 bands) | No (UK-wide) |
| Main rates (employed) | 20%, 40%, 45% | 8%, 2% |
| Funds | General government spending | State Pension, benefits (nominally) |
State Pension Qualifying Years
Your National Insurance record determines your State Pension entitlement. For the new State Pension (for those reaching State Pension age on or after 6 April 2016):
Full State Pension
£241.30/week
(£12,547.60/year)
Years needed (full)
35 years
Minimum years
10 years
You get a qualifying year when you:
- Are employed and earn at least the Lower Earnings Limit (£6,708/year)
- Are self-employed and are treated as having paid Class 2, or pay it voluntarily
- Pay Class 3 voluntary contributions
- Receive National Insurance credits (e.g. while claiming benefits or caring for a child under 12)
You can check your NI record and State Pension forecast on GOV.UK.