National Insurance rates 2026/27: employee, employer and self-employed
National Insurance (NI) is paid on earnings on top of income tax, and it builds your entitlement to the State Pension and some benefits. Here are the rates and thresholds for the 2026/27 tax year.
Employee National Insurance (Class 1)
Employees pay 8% on earnings between £12,570 and £50,270 a year (£1,048 to £4,189 a month), and 2% on everything above £50,270. You pay nothing on earnings below £12,570. NI is worked out on each pay period separately, not over the whole year.
Example: on a £35,000 salary you pay 8% on £22,430, which is £1,794.40 a year.
Employer National Insurance
Employers pay 15% on each employee's earnings above £5,000 a year. Eligible businesses can claim the Employment Allowance, which reduces their employer NI bill by up to £10,500 a year. Employer NI isn't taken from your pay, but it's a real cost to your employer.
Self-employed National Insurance (Class 4)
Self-employed people pay 6% on profits between £12,570 and £50,270 and 2% above that, through Self Assessment. Class 2 is no longer compulsory, but you can pay it voluntarily to protect your State Pension if your profits are low.
When you stop paying National Insurance
You stop paying employee NI once you reach State Pension age, even if you keep working. You need 35 qualifying years for the full new State Pension, and you can check your record in the HMRC app.