Last reviewed against official GOV.UK and HMRC guidance for the 2026/27 tax year.
National Insurance Rates 2026/27: How Much Will You Pay?
A clear guide to Class 1 National Insurance for employees in 2026/27 — the thresholds, the 8% and 2% rates, and exactly how much comes out of your pay.
National Insurance (NI) is the second-largest deduction on most UK payslips after Income Tax, yet far fewer people understand how it works. Unlike Income Tax, it has its own thresholds, its own rates, and it ignores your tax code entirely. This guide explains exactly how much Class 1 National Insurance an employee pays in the 2026/27 tax year, and why your NI bill can look so different from your colleague's.
How much National Insurance will I pay in 2026/27?
As an employee, you pay 8% Class 1 National Insurance on earnings between £12,570 and £50,270 a year, and 2% on everything above £50,270. You pay nothing on the first £12,570 — this is the Primary Threshold, and it currently matches the Income Tax Personal Allowance. NI is worked out on each pay packet, not on your annual total, but for a steady salary the figures align.
| Band | Annual Earnings (2026/27) | Employee NI Rate |
|---|---|---|
| Below the Primary Threshold | Up to £12,570 | 0% |
| Main rate band | £12,571 to £50,270 | 8% |
| Above the Upper Earnings Limit | Over £50,270 | 2% |
Why does the rate drop to 2% for higher earners?
It surprises many people that National Insurance becomes less aggressive as you earn more — the opposite of Income Tax. Once your earnings pass the Upper Earnings Limit of £50,270, the rate falls from 8% to just 2%. This is why a higher earner's overall effective NI rate actually decreases as their salary climbs, even as their Income Tax rate rises to 40% and beyond.
A worked example: National Insurance on a £35,000 salary
Suppose you earn £35,000 a year. You pay no NI on the first £12,570. The remaining £22,430 is all within the main rate band, so you pay 8% of it:
£35,000 salary
£22,430 × 8% = £1,794.40 in National Insurance for the year, or about £149.53 a month.
Now compare a £60,000 salary. You pay 8% on the band between £12,570 and £50,270 (£3,016), plus 2% on the £9,730 above the Upper Earnings Limit (£194.60), for a total of £3,210.60. Note that earning £25,000 more only added around £1,400 in NI — that 2% top band keeps the bill modest for higher earners.
Does National Insurance change if I live in Scotland?
No. National Insurance is set by the UK government and is identical across England, Wales, Scotland and Northern Ireland. Only Income Tax rates differ for Scottish residents — see our guide to Scottish Income Tax for the detail. Whatever your postcode, your NI is calculated the same way.
How can I legally reduce my National Insurance?
The most effective tool for most employees is a salary sacrifice pension. Because salary sacrifice reduces your contractual gross pay before NI is calculated, you save 8% (or 2%) NI on every pound you redirect into your pension — a saving you do not get with standard pension arrangements. Pension contributions are one of the only ways an ordinary employee can lower an NI bill.
See your exact National Insurance
Every figure above is calculated using official HMRC thresholds. To see your own National Insurance alongside Income Tax, pensions and student loans, use our UK Salary Calculator, or jump straight to a popular salary such as £50,000 after tax. Full rates are published by HMRC on the National Insurance rates and categories page.