How the National Insurance calculator works
National Insurance (NI) is a tax on earnings that pays for the State Pension and some benefits. Employees pay Class 1 NI through payroll, and self-employed people pay Class 4 NI on their profits through Self Assessment. This calculator uses the HMRC rates and thresholds for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027.
For employees, choose whether you're entering yearly, monthly or weekly pay. Payroll works out NI separately for each pay period, using that period's thresholds, so the monthly and weekly results match what you should see on your payslip. Unlike income tax, NI isn't worked out over the whole year, so a big bonus in one month can push you over the monthly upper limit even if your annual pay is below it.
Employee National Insurance rates for 2026/27
Most employees are in category A and pay 8% on earnings between the Primary Threshold and the Upper Earnings Limit, then 2% on everything above it. The thresholds are frozen at the same level as 2025/26.
| Threshold | Week | Month | Year |
|---|---|---|---|
| Lower Earnings Limit | £129 | £559 | £6,708 |
| Primary Threshold (employee NI starts, 8%) | £242 | £1,048 | £12,570 |
| Upper Earnings Limit (2% above this) | £967 | £4,189 | £50,270 |
| Secondary Threshold (employer NI starts, 15%) | £96 | £417 | £5,000 |
The Lower Earnings Limit went up for 2026/27, from £125 to £129 a week. You pay nothing on earnings between it and the Primary Threshold, but those weeks still count towards your State Pension.
Worked example: how much NI on £35,000?
On a £35,000 salary, the part above £12,570 is £22,430. At 8% that's £1,794.40 a year, or about £149.53 a month. Your employer pays 15% on everything above £5,000, which is £4,500 on top of your salary.
If you're paid £3,000 a month, payroll takes 8% of £1,952 (£3,000 minus £1,048), which is £156.16 a month. On £60,000 a year you pay £3,016 at 8% plus £194.60 at 2% on the £9,730 above £50,270, a total of £3,210.60.
Self-employed National Insurance for 2026/27
Sole traders and partners pay Class 4 NI on their annual profit:
- 6% on profits between £12,570 and £50,270
- 2% on profits over £50,270
Class 2 NI is no longer compulsory. If your profit is £7,105 or more, you're treated as having paid it, so the year counts for your State Pension at no cost. Below £7,105 you can choose to pay voluntary Class 2 at £3.65 a week (£189.80 for the year), which is one of the cheapest ways to protect your State Pension record.
For example, a profit of £40,000 gives Class 4 NI of 6% × £27,430 = £1,645.80. On £60,000 it's £2,262 plus £194.60, a total of £2,456.60. To see your income tax and payments on account as well, use the self-employed tax calculator.
Employer National Insurance
Employers pay 15% on each employee's earnings above the Secondary Threshold of £5,000 a year (£96 a week). There's no upper limit, and it doesn't come out of your pay. Employers don't pay on earnings below £50,270 for employees under 21, apprentices under 25 and eligible veterans in their first year of civilian work. Many small businesses can claim the £10,500 Employment Allowance against their bill.
Ways to pay less National Insurance
- Salary sacrifice: giving up salary in exchange for an employer pension contribution cuts your NI as well as your income tax. Our salary sacrifice calculator shows how much you'd save.
- State Pension age: once you reach it, employee NI stops. Show your employer proof of age so they stop deducting it. Self-employed people stop paying Class 4 from the tax year after they reach it.
- Check your category letter: it's on your payslip. Category A is standard, C means no employee NI, and M is for under-21s (same employee rate, no employer NI below £50,270).
To see NI alongside income tax, pension and student loan, try the take-home pay calculator.
Frequently asked questions
How much National Insurance do I pay on £30,000?
An employee on £30,000 pays £1,394.40 National Insurance in 2026/27: 8% of the £17,430 earned above £12,570. Your employer pays a further £3,750.
What is the National Insurance threshold for 2026/27?
Employees start paying NI on earnings over £242 a week, £1,048 a month or £12,570 a year. The rate drops from 8% to 2% above £967 a week, £4,189 a month or £50,270 a year.
Do I pay National Insurance after State Pension age?
No. Employee Class 1 NI stops once you reach State Pension age, even if you carry on working, but your employer still pays employer NI. Self-employed Class 4 stops from the start of the tax year after you reach State Pension age.
What is the self-employed National Insurance rate?
For 2026/27 self-employed people pay Class 4 NI at 6% on profits between £12,570 and £50,270 and 2% above that. Class 2 is treated as paid if profits are £7,105 or more, and can be paid voluntarily at £3.65 a week below that.
How much is employer National Insurance in 2026/27?
Employers pay 15% on earnings above £5,000 a year (£96 a week), with no upper limit. On a £35,000 salary that's £4,500 a year.
Last reviewed October 2026 using 2026/27 figures. This calculator gives an estimate for guidance only.