# National Insurance in 2026/27: rates, thresholds and examples

URL: https://computenow.co.uk/guides/national-insurance-2026-27/

> Employee National Insurance in 2026/27: 8% from £12,570 to £50,270, 2% above, employer NI, category letters and salary sacrifice.

This calculator shows a worked example below. To use your own figures, add them to the URL as query parameters (listed in https://computenow.co.uk/llms.txt), for example https://computenow.co.uk/guides/national-insurance-2026-27/?<parameter>=<value>.

[Pay & tax guide](https://computenow.co.uk/guides/#pay)

# National Insurance in 2026/27: rates, thresholds and examples

What you pay in National Insurance on your salary, what your employer pays on top, and how to pay less legally.
Published 18 October 2026All of the UK
By the ComputeNow team, checked against GOV.UK and HMRC[Sources (2)](#sources)[How we calculate](https://computenow.co.uk/methodology/)

## Key points

- **8% between £12,570 and £50,270**, then 2% on everything above.
- **On £35,000 you pay £1,794.40 a year.** Your employer pays another £4,500.00 on top.
- **Salary sacrifice saves NI.** A 5% pension through salary sacrifice leaves you £140.00 a year better off than the same pension through net pay, on £35,000.
- **It stops at State Pension age**, and it is the same in Scotland as in the rest of the UK.

Work out your own
See your own National Insurance, with your category letter, pension and salary sacrifice.[Open the take-home pay calculator](https://computenow.co.uk/take-home-pay/)

## The rates for 2026/27

Employees pay Class 1 National Insurance on their pay from each job. It is worked out on each payslip, but over a year it comes to:

- Nothing on the first £12,570 a year (the primary threshold).
- 8% on pay between £12,570 and £50,270 (the upper earnings limit).
- 2% on everything above £50,270.
Unlike Income Tax, National Insurance is the same in Scotland as in the rest of the UK, and it stops when you reach State Pension age. Earning at least £6,708 a year (the lower earnings limit) still builds up qualifying years for your State Pension, even below the point where you start paying.

## How much you pay

| Salary | You pay a year | A month | Your employer pays |
| --- | --- | --- | --- |
| £20,000 | £594.40 | £49.53 | £2,250.00 |
| £35,000 | £1,794.40 | £149.53 | £4,500.00 |
| £50,000 | £2,994.40 | £249.53 | £6,750.00 |
| £80,000 | £3,610.60 | £300.88 | £11,250.00 |
| £120,000 | £4,410.60 | £367.55 | £17,250.00 |

On £35,000, for example, 8% of the £22,430 above the threshold is £1,794.40 a year.

## What your employer pays

Employers pay their own National Insurance on top of your salary: 15% on pay above £5,000 a year, with no upper limit. It never comes out of your pay, but it is part of what you cost to employ. For under-21s, apprentices under 25 and some veterans, employers pay nothing up to £50,270. Employers also pay 15% Class 1A National Insurance on taxable benefits such as a company car.

## Category letters

The letter on your payslip sets your rate. Most people are category A. A few others change what you pay:

- **B**: some married women and widows pay a reduced 1.85% instead of 8%. On £35,000 that is £414.96 a year.
- **C**: over State Pension age, you pay nothing.
- **J and Z**: if you pay full National Insurance in another job, you can defer and pay 2% here: £448.60 on £35,000.
- **H, M and V**: apprentices under 25, under-21s and veterans pay the normal rate, but their employer pays less.

## Salary sacrifice saves National Insurance

Pension contributions taken from your pay before tax save Income Tax, but only salary sacrifice saves National Insurance as well, because your salary itself goes down. On £35,000 with a 5% pension:

| 5% pension paid by | National Insurance | Take-home a year |
| --- | --- | --- |
| No pension | £1,794.40 | £28,719.60 |
| Net pay (before tax) | £1,794.40 | £27,319.60 |
| Salary sacrifice | £1,654.40 | £27,459.60 |

The same £1,750.00 goes into your pension either way, but salary sacrifice leaves you £140.00 a year better off. [Try it with your own salary](https://computenow.co.uk/take-home-pay/?salary=35000&pension=5&ptype=sacrifice).

## Bottom line

National Insurance takes 8% of most of your pay, but only 2% above £50,270, so it matters most on middle incomes. Salary sacrifice is the main legal way to pay less.

## Tips

- Check your category letter on your payslip. A wrong letter (for example A instead of C after State Pension age) means you pay the wrong amount.
- Earning over £6,708 but under £12,570 still gives you a qualifying year for the State Pension without paying anything.
- Ask your employer whether pension, cycle-to-work or electric car schemes run through salary sacrifice: each saves NI as well as tax.
This guide explains the rules; it is not personal financial advice.

## Related

[Take-home pay calculator Your pay after tax and NI](https://computenow.co.uk/take-home-pay/)[£35,000 after tax A worked example](https://computenow.co.uk/take-home-pay/35000/)[EV salary sacrifice calculator Save tax and NI on a car](https://computenow.co.uk/ev-salary-sacrifice-calculator/)

## Guides and help

### Our guides

[How Income Tax bands work in 2026/27 Personal Allowance, basic, higher and additional rate](https://computenow.co.uk/guides/income-tax-bands-2026-27/)[The 60% tax trap Why income over £100,000 is taxed at 60%, and what to do](https://computenow.co.uk/guides/60-percent-tax-trap/)

### Official services and free advice

[Check your National Insurance record GOV.UK: find gaps that cut your State Pension](https://www.gov.uk/check-national-insurance-record)[National Insurance GOV.UK: what you pay and what it counts towards](https://www.gov.uk/national-insurance)[Salary sacrifice GOV.UK: how it changes tax and NI](https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye)

## Article sources

Each source was last checked on 18 October 2026.

- [GOV.UK: Rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)
- [GOV.UK: National Insurance rates and categories](https://www.gov.uk/national-insurance-rates-letters)
These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.
This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.