What are the UK NI rates for 2026/27?

For 2026/27: employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Employers pay Class 1 secondary NI at 15.05% on earnings above the Secondary Threshold (£5,000 from April 2025). Self-employed pay Class 4 at 6% on profits £12,570-£50,270 and 2% above. Class 2 voluntary contributions are £3.45/week.

What is the Personal Threshold for NI?

The Class 1 Primary Threshold has been aligned with the Income Tax Personal Allowance at £12,570 since July 2022 - the first £12,570 of earnings is NI-free for employees. Self-employed Class 4 NI uses the same £12,570 lower limit. Both thresholds have been frozen since April 2021 and remain frozen for 2026/27.

Why did employee NI drop to 8%?

Employee Class 1 NI dropped from 12% to 10% in January 2024, then from 10% to 8% in April 2024. The cuts were announced in successive Autumn Statements as a tax-cut headline. Class 4 self-employed NI dropped from 9% to 8% then to 6% across the same window. The 2% rate above the Upper Earnings Limit (£50,270) was unchanged.

What is Employer NI and how much does it cost?

Employers pay Class 1 secondary NI of 15.05% on earnings above the Secondary Threshold. From 6 April 2025 the Secondary Threshold dropped from £9,100 to £5,000 in the November 2024 Autumn Budget, significantly increasing the employer cost of low-paid workers. The Employment Allowance (a £10,500 annual deduction from employer NI) was raised from £5,000 in the same Budget.

Do I need to pay Class 2 NI if self-employed?

Class 2 NI was effectively abolished as a separate compulsory contribution from 6 April 2024 - profits above the Small Profits Threshold (£6,725) now give the self-employed automatic qualifying-year credit for State Pension without paying Class 2. Class 2 remains available as a voluntary £3.45/week contribution for those below the Small Profits Threshold who want the State Pension credit.

How do NI bands interact with Income Tax?

NI is calculated independently of Income Tax with its own bands. Employees in the basic rate (20% IT) also pay 8% NI = 28% combined marginal. Higher rate (40% IT) earners pay only 2% NI = 42% combined. The combined effect produces non-monotonic marginal rates: a £55,000 employee pays MORE marginal tax than a £75,000 employee on the next pound (because of the NI 8% to 2% step) - rare but real.

UK National Insurance Rates and Bands (2026/27)

National Insurance is the UK's parallel earnings-based contribution system to Income Tax, funding State Pension, Statutory Sick Pay, parental pay, contributory benefits, and the NHS. There are multiple classes for different groups of earners - employees pay Class 1, self-employed Class 4, and small voluntary contributors Class 2 or Class 3.

Class 1 (employees)

Earnings band	Employee rate	Employer rate
£0 to £5,000	0%	0%
£5,001 to £12,570	0%	15.05%
£12,571 to £50,270	8%	15.05%
Above £50,270	2%	15.05%

Class 4 (self-employed)

Profits band	Rate
£0 to £12,570	0%
£12,571 to £50,270	6%
Above £50,270	2%

Class 2 and Class 3 (voluntary)

Class 2: £3.45 per week (£179.40 per year) - voluntary for self-employed below the Small Profits Threshold (£6,725). Pays for State Pension qualifying year credit.
Class 3: £17.75 per week (£923 per year) - voluntary for anyone wanting to fill State Pension gap years. The standard window is 6 years; the temporary extension to fill gaps back to April 2006 closed in April 2025.
Class 3 contributions typically pay back within 3 years of retirement at State Pension Age - one of the highest-yielding voluntary contributions in UK personal finance.

Combined IT + NI marginal rates

Earnings band	IT	NI	Combined marginal
Up to £12,570	0%	0%	0%
£12,571 to £50,270	20%	8%	28%
£50,271 to £100,000	40%	2%	42%
£100,001 to £125,140	40%	2%	~62%
Above £125,140	45%	2%	47%

Frequently asked questions

What are the UK NI rates for 2026/27?: For 2026/27: employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Employers pay Class 1 secondary NI at 15.05% on earnings above the Secondary Threshold (£5,000 from April 2025). Self-employed pay Class 4 at 6% on profits £12,570-£50,270 and 2% above. Class 2 voluntary contributions are £3.45/week.
What is the Personal Threshold for NI?: The Class 1 Primary Threshold has been aligned with the Income Tax Personal Allowance at £12,570 since July 2022 - the first £12,570 of earnings is NI-free for employees. Self-employed Class 4 NI uses the same £12,570 lower limit. Both thresholds have been frozen since April 2021 and remain frozen for 2026/27.
Why did employee NI drop to 8%?: Employee Class 1 NI dropped from 12% to 10% in January 2024, then from 10% to 8% in April 2024. The cuts were announced in successive Autumn Statements as a tax-cut headline. Class 4 self-employed NI dropped from 9% to 8% then to 6% across the same window. The 2% rate above the Upper Earnings Limit (£50,270) was unchanged.
What is Employer NI and how much does it cost?: Employers pay Class 1 secondary NI of 15.05% on earnings above the Secondary Threshold. From 6 April 2025 the Secondary Threshold dropped from £9,100 to £5,000 in the November 2024 Autumn Budget, significantly increasing the employer cost of low-paid workers. The Employment Allowance (a £10,500 annual deduction from employer NI) was raised from £5,000 in the same Budget.
Do I need to pay Class 2 NI if self-employed?: Class 2 NI was effectively abolished as a separate compulsory contribution from 6 April 2024 - profits above the Small Profits Threshold (£6,725) now give the self-employed automatic qualifying-year credit for State Pension without paying Class 2. Class 2 remains available as a voluntary £3.45/week contribution for those below the Small Profits Threshold who want the State Pension credit.
How do NI bands interact with Income Tax?: NI is calculated independently of Income Tax with its own bands. Employees in the basic rate (20% IT) also pay 8% NI = 28% combined marginal. Higher rate (40% IT) earners pay only 2% NI = 42% combined. The combined effect produces non-monotonic marginal rates: a £55,000 employee pays MORE marginal tax than a £75,000 employee on the next pound (because of the NI 8% to 2% step) - rare but real.