National Insurance Calculator
Our free National Insurance calculator breaks down exactly how much employee and employer National Insurance you pay on any salary in 2026/27. NI is the second-largest deduction from most UK pay packets, yet many people are unclear on how it is calculated or why the rates change at different earnings thresholds.
National Insurance Calculator
Calculate your National Insurance contributions for 2026/27. Class 1 (employed) and Class 4 (self-employed).
How National Insurance Works in 2026/27
National Insurance Contributions (NICs) fund the UK state pension, the NHS, and certain benefits including Statutory Sick Pay and Maternity Pay. For employees, NICs are collected through PAYE alongside income tax. The key thresholds for 2026/27 are the Primary Threshold of £12,570 — below which no NICs are due — and the Upper Earnings Limit of £50,270, above which the rate drops significantly.
Employee NICs are charged at 8% on earnings between the Primary Threshold and the Upper Earnings Limit, and at 2% on any earnings above that. Employer NICs are separate and charged at 15% on earnings above the Secondary Threshold of £5,000 per year — a significant employment cost that does not appear on your payslip.
National Insurance Calculation Example
On a salary of £40,000, the employee NI calculation for 2026/27 works as follows. The earnings between the Primary Threshold (£12,570) and the salary are £27,430. NI at 8% on £27,430 equals £2,194.40 per year, or approximately £182.87 per month. Employer NI at 15% on earnings above £5,000 (so on £35,000) equals £5,250 — a substantial additional cost to your employer beyond your gross salary.
How National Insurance Differs From Income Tax
Income tax and National Insurance are calculated separately and have different rates, thresholds, and purposes. Income tax has a Personal Allowance of £12,570 with bands at 20%, 40%, and 45%. NI has its own threshold structure and does not apply to pension income, rental income, or most savings interest — only employment and self-employment earnings. Crucially, NI contributions build your entitlement to the State Pension and contribution-based benefits, whereas income tax does not. Our Income Tax and NI Calculator shows both deductions together on a single payslip-style breakdown.
Frequently Asked Questions
No — salary sacrifice pension contributions reduce your earnings below NI is calculated, so you save NI as well as income tax on those contributions. This makes salary sacrifice particularly efficient compared to paying into a pension from net pay.
Employee NICs stop at State Pension age, which is currently 66 for both men and women. If you continue working after 66, you no longer pay NICs even if your employer does. Your employer continues to pay their share of NICs on your earnings at any age.
No. They are separate deductions calculated independently. NI has different thresholds and rates, and serves a different purpose — it funds specific benefits and builds State Pension entitlement. Income tax funds general government expenditure. Both are deducted automatically through PAYE. See our Take-Home Pay Calculator for the combined effect on your net pay.
Self-employed people pay Class 4 NICs at 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 contributions of £3.65 per week (2026/27) are optional but allow you to build State Pension entitlement if your profits are below the Small Profits Threshold of £6,725.
Each employer calculates NI separately on the earnings from that job. If both jobs pay below the Primary Threshold individually, you pay no NI on either — even if your combined income is above the threshold. You cannot ask employers to aggregate your earnings for NI purposes.
Enter gross annual earnings and select employed or self-employed. Employees pay Class 1 NI: 8% on earnings between the Primary Threshold (£12,570) and Upper Earnings Limit (£50,270), then 2% above. Self-employed workers pay Class 4 at 6% between the Lower Profits Limit and UEL, plus 2% above — Class 2 contributions are now handled within Self Assessment. For multiple jobs, calculate each separately — NI does not combine across employers, and each job has its own Primary Threshold. The results show both employee and employer NI, which is useful for calculating total employment cost. Note that benefits in kind attract Class 1A employer NI at 15%, which is shown separately.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.