UK National Insurance 2026/27 Explained
National Insurance is a second deduction from pay, alongside Income Tax. In the 2026/27 tax year (6 April 2026 to 5 April 2027), most employees pay 8% on pay between £12,570 and £50,270 a year and 2% on anything above that, while employers pay 15% on pay above £5,000. This guide sets out the thresholds, the category letters and a few worked examples.
The short answer
- Employee, category A: 0% up to £12,570, 8% from £12,570 to £50,270, and 2% above £50,270 a year.
- Thresholds: the primary threshold is £242 a week, £1,048 a month or £12,570 a year. The upper earnings limit is £967 a week, £4,189 a month or £50,270 a year.
- Employer: 15% on an employee's pay above the secondary threshold of £5,000 a year (£96 a week, £417 a month).
- Different from Income Tax: separate thresholds and rates, charged per pay period.
National Insurance thresholds for 2026/27
| Class 1 threshold | Per week | Per month | Per year |
|---|---|---|---|
| Lower earnings limit | £129 | £559 | £6,708 |
| Primary threshold (employees start paying) | £242 | £1,048 | £12,570 |
| Secondary threshold (employers start paying) | £96 | £417 | £5,000 |
| Upper earnings limit | £967 | £4,189 | £50,270 |
Figures from GOV.UK: Rates and thresholds for employers 2026 to 2027. They apply from 6 April 2026 to 5 April 2027.
How employee National Insurance is worked out
National Insurance is charged on your pay in each pay period, in slices. For a category A employee, nothing is charged on pay up to the primary threshold. Pay from the primary threshold up to the upper earnings limit is charged at 8%, and any pay above the upper earnings limit is charged at 2%.
Example, £60,000 a year. The pay between £12,570 and £50,270 is £37,700, and 8% of that is £3,016.00. The £9,730 above £50,270 is charged at 2%, which is £194.60. National Insurance for the year is £3,210.60, about 5.4% of £60,000.
Example, £3,500 a month. Using the monthly thresholds, the pay above £1,048 is £2,452, and 8% of that is £196.16 for the month.
National Insurance on common incomes (2026/27)
| Annual pay | Employee National Insurance | Share of pay |
|---|---|---|
| £20,000 | £594.40 | 3.0% |
| £30,000 | £1,394.40 | 4.6% |
| £40,000 | £2,194.40 | 5.5% |
| £50,270 | £3,016.00 | 6.0% |
| £60,000 | £3,210.60 | 5.4% |
| £80,000 | £3,610.60 | 4.5% |
| £100,000 | £4,010.60 | 4.0% |
Employee Class 1 National Insurance for category A, worked out on a yearly basis from the annual thresholds. Real payslips work it out each pay period, so they can differ slightly. These figures are an estimate, not a payslip.
National Insurance categories
Your category letter decides which rates apply to you. These are the employee rates on GOV.UK for 2026/27:
| Category | Who it is for | Primary threshold to upper earnings limit | Above the upper earnings limit |
|---|---|---|---|
| A | Most employees | 8% | 2% |
| B (and E, I) | Married women and widows with a reduced rate | 1.85% | 2% |
| C (and K, S) | Employees over State Pension age | Nil | Nil |
| H | Apprentices under 25 | 8% | 2% |
| M | Employees under 21 | 8% | 2% |
| V | Veterans | 8% | 2% |
| J (and D, L, Z) | Deferment, for example where National Insurance is paid in another job | 2% | 2% |
Categories F and N (Freeport and Investment Zone) have the same employee rates as category A. For H, M and V the employee rates match category A, but the employer's rate is different (see below). Ask your employer if you are unsure which letter applies.
What employers pay
Employers pay their own Class 1 National Insurance, called secondary contributions, on top of the employee's. For 2026/27 the standard rate is 15% on pay above the secondary threshold of £5,000 a year. For employees under 21, apprentices under 25 and veterans, GOV.UK lists a 0% employer rate up to £50,270, with 15% on pay above that. Eligible employers can also reduce their yearly National Insurance bill with the Employment Allowance, which is £10,500 for 2026/27.
How National Insurance differs from Income Tax
The two are easy to mix up, but they are separate. Income Tax depends on your taxable income after your Personal Allowance, in the bands set out in our UK Income Tax bands guide. National Insurance has its own thresholds and is charged on your pay in each pay period. The House of Commons Library notes that the primary threshold is aligned with the Income Tax Personal Allowance, which is why both are £12,570 a year for 2026/27.
What this guide does not cover
- Self-employed people do not pay Class 1. They pay different classes, and the rules are on GOV.UK: National Insurance.
- Company directors have a different way of working out National Insurance. See GOV.UK on National Insurance for company directors.
- Class 1A and Class 1B are employer-only charges on benefits and settlements, at 15% for 2026/27.
UK National Insurance questions answered
What are the National Insurance rates for 2026/27?
Most employees (category A) pay 0% up to £12,570 a year, 8% on pay from £12,570 to £50,270, and 2% above £50,270. Employers pay 15% on each employee's pay above £5,000 a year.
At what pay do I start paying National Insurance?
At the primary threshold, which is £242 a week, £1,048 a month or £12,570 a year for 2026/27. Pay below that is charged at 0%.
Is National Insurance the same as Income Tax?
No. They are separate deductions with their own thresholds and rates. National Insurance is charged on your pay in each pay period, while Income Tax is charged on taxable income after your Personal Allowance. The primary threshold is aligned with the Personal Allowance at £12,570, but they are different things.
Do I pay National Insurance over State Pension age?
Employees over State Pension age (category C) pay no employee National Insurance. Income Tax is still due, and the employer still pays 15% on pay above the secondary threshold.
What does the letter on my payslip mean?
It is your National Insurance category. Category A is the standard letter for most employees. Other letters apply to people such as those over State Pension age (C), under 21s (M), apprentices under 25 (H) and veterans (V), and the rates for each are in the table above. Ask your employer if you are unsure which letter applies.
Is National Insurance different in Scotland or Wales?
The Class 1 rates and thresholds on GOV.UK are the same everywhere in the UK. Only Income Tax bands differ in Scotland.
Sources
- GOV.UK: Rates and thresholds for employers 2026 to 2027Official Class 1 thresholds, employee and employer rates by category letter, Employment Allowance and Class 1A and 1B rates.
- GOV.UK: National InsuranceOverview of National Insurance for employees and the self-employed.
- GOV.UK: National Insurance for company directorsHow directors' National Insurance is calculated.
- GOV.UK: Employment Allowance eligibilityWho can claim the Employment Allowance.
- House of Commons Library: Direct taxes, rates and allowances for 2026/27The 8% main rate, the primary threshold and the link to the Personal Allowance.
Good to know
This guide is general information, not tax or financial advice. What you pay depends on your category letter, how often you are paid, any other jobs and whether you are an employee, a director or self-employed. Rates were last checked against GOV.UK on 2 October 2026. If your payslip looks wrong, ask your employer or contact HMRC.