Key takeaways
- Employees pay 8% on earnings between £12,570 and £50,270 and 2% above that; these thresholds are frozen until April 2031.
- Employers pay 15% on earnings above the secondary threshold of £5,000 a year, reduced by the £10,500 Employment Allowance for eligible employers.
- The self-employed pay Class 4 at 6% on profits between £12,570 and £50,270 and 2% above; Class 2 is no longer compulsory.
- Voluntary contributions cost £3.65 a week (Class 2) or £18.40 a week (Class 3) in 2026/27.
- Employers pay no NI up to £50,270 on most under-21s, apprentices under 25 and qualifying veterans in their first year.
National Insurance (NI) rates for 2026/27 are unchanged from 2025/26, after the large increase in employer NI in April 2025. The main thresholds are frozen until April 2031, so this table will look familiar for some years. The figures below apply from 6 April 2026 to 5 April 2027 across the whole UK.
Class 1 thresholds
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £129 | £559 | £6,708 |
| Primary Threshold (PT), employees start paying | £242 | £1,048 | £12,570 |
| Secondary Threshold (ST), employers start paying | £96 | £417 | £5,000 |
| Freeport and Investment Zone upper secondary threshold | £481 | £2,083 | £25,000 |
| Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 |
| Upper secondary threshold for under-21s, apprentices under 25 and veterans | £967 | £4,189 | £50,270 |
Earnings between the LEL and the Primary Threshold attract no NI but still count towards your State Pension record.
Employee (primary) Class 1 rates
| Earnings | Rate (category A) |
|---|---|
| Up to £242 a week | 0% |
| £242 to £967 a week | 8% |
| Over £967 a week | 2% |
Some employees pay at other rates: married women with a valid reduced rate election pay 1.85% (category B), and people over State Pension age pay no employee NI (category C).
Employer (secondary) Class 1 rates
| Earnings | Rate |
|---|---|
| Up to £96 a week (£5,000 a year) | 0% |
| Over £96 a week | 15% |
Employers pay no secondary NI up to £967 a week (£50,270 a year) on earnings of:
- employees under 21
- apprentices under 25
- qualifying armed forces veterans in the first 12 months of their first civilian job
Employers at Freeport and Investment Zone sites can pay 0% up to £25,000 a year for eligible new employees.
Employment Allowance
Eligible employers can reduce their annual employer NI bill by up to £10,500. It is not available to companies whose only employee paid above the secondary threshold is a director, or to public bodies doing mostly public work. See the Employment Allowance guide.
Class 1A and Class 1B
| Class | What it is charged on | Rate 2026/27 |
|---|---|---|
| Class 1A | Taxable benefits in kind such as company cars and medical insurance, and termination payments over £30,000 | 15% |
| Class 1B | Items in a PAYE Settlement Agreement, and the tax paid on them | 15% |
Class 1A on benefits is reported on the P11D(b) and paid by 22 July after the tax year (19 July by cheque). See benefits in kind and P11D.
Self-employed: Class 2 and Class 4
| 2026/27 | |
|---|---|
| Class 4 lower profits limit | £12,570 |
| Class 4 upper profits limit | £50,270 |
| Class 4 rate on profits between the limits | 6% |
| Class 4 rate on profits above £50,270 | 2% |
| Class 2 small profits threshold | £7,105 |
| Class 2 voluntary rate | £3.65 a week |
Since April 2024 self-employed people with profits above the small profits threshold are treated as having paid Class 2, so it builds their State Pension record without a charge. People with profits below £7,105 can pay Class 2 voluntarily to protect their record. See National Insurance for the self-employed.
Class 3 voluntary contributions
Class 3 contributions cost £18.40 a week (£956.80 for a full year) in 2026/27. They fill gaps in your record for State Pension purposes. See voluntary National Insurance contributions.
Worked examples for 2026/27
Employee earning £35,000
| Calculation | NI | |
|---|---|---|
| Employee NI | 8% × (£35,000 − £12,570) | £1,794.40 |
| Employer NI | 15% × (£35,000 − £5,000) | £4,500.00 |
Employee earning £65,000
| Calculation | NI | |
|---|---|---|
| Employee NI at 8% | 8% × (£50,270 − £12,570) | £3,016.00 |
| Employee NI at 2% | 2% × (£65,000 − £50,270) | £294.60 |
| Total employee NI | £3,310.60 | |
| Employer NI | 15% × (£65,000 − £5,000) | £9,000.00 |
Self-employed with profits of £40,000
Class 4 NI is 6% × (£40,000 − £12,570) = £1,645.80. No Class 2 is payable.
In practice employees’ NI is worked out on each pay period, not annually, so the totals can differ slightly. Our employee NI calculator, employer NI calculator and self-employed NI calculator do the sums.
Frequently asked questions
What is the National Insurance rate for 2026/27?
Employees pay 8% between £12,570 and £50,270 and 2% above. Employers pay 15% above £5,000. The self-employed pay 6% Class 4 between £12,570 and £50,270 and 2% above.
Did National Insurance go up in April 2026?
No. The rates and main thresholds are the same as in 2025/26. The Lower Earnings Limit, the Class 2 small profits threshold and the voluntary rates rose with inflation.
When do employers stop paying the 15% rate on young workers?
Employers pay no secondary NI up to £50,270 a year on employees under 21 and apprentices under 25. Above that, the normal 15% applies.
How much does a year of voluntary National Insurance cost?
£956.80 at the Class 3 rate of £18.40 a week, or £189.80 at the Class 2 rate of £3.65 a week for those eligible to pay Class 2.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.