National Insurance Rates 2026-27
Every UK National Insurance rate and threshold for 2026-27 and 2025-26 — employee Class 1, employer Class 1/1A/1B, self-employed Class 2 & 4, voluntary Class 3, and the NI category letters.
Employee National Insurance (Class 1)
| Tax year | LEL (weekly / annual) | Primary Threshold (weekly / annual) | Upper Earnings Limit (weekly / annual) | Main rate | Above UEL |
|---|---|---|---|---|---|
| 2026-27 | £129/wk (£6,708) | £242/wk (£12,570) | £967/wk (£50,270) | 8% | 2% |
| 2025-26 | £125/wk (£6,500) | £242/wk (£12,570) | £967/wk (£50,270) | 8% | 2% |
No employee NI is due below the Primary Threshold. Earnings between the LEL and PT still count as a qualifying year for State Pension even though no NI is actually paid.
Employer National Insurance (Class 1 secondary, 1A & 1B)
| Tax year | Secondary Threshold (weekly / annual) | Rate (Class 1, 1A & 1B) | Employment Allowance |
|---|---|---|---|
| 2026-27 | £96/wk (£5,000) | 15% | £10,500 (if employer NI < £100,000 in prior year) |
| 2025-26 | £96/wk (£5,000) | 15% | £10,500 (if employer NI < £100,000 in prior year) |
There's no upper limit on employer NI — the rate applies to all earnings above the Secondary Threshold. Class 1A (on most benefits-in-kind) and Class 1B (on PAYE Settlement Agreement items) use the same rate as standard employer Class 1 secondary NI.
Self-employed National Insurance (Class 2 & Class 4)
Since 6 April 2024, mandatory Class 2 contributions were abolished for self-employed people with profits above the Small Profits Threshold — they're treated as paid automatically, protecting State Pension and contributory benefits with no separate payment. Below the threshold, Class 2 becomes voluntary if you want to keep building qualifying years.
| Tax year | Class 2 weekly rate (voluntary below threshold) | Small Profits Threshold | Class 4 — Lower / Upper Profits Limit | Class 4 rate |
|---|---|---|---|---|
| 2026-27 | £3.65 | £7,105 | £12,570 – £50,270 | 6% / 2% above |
| 2025-26 | £3.50 | £6,845 | £12,570 – £50,270 | 6% / 2% above |
Class 3 (voluntary)
Class 3 is a fully voluntary weekly contribution anyone can pay to fill a gap in their National Insurance record and protect their State Pension, regardless of employment status.
| Tax year | Weekly rate |
|---|---|
| 2026-27 | £18.20 |
| 2025-26 | £17.75 |
National Insurance category letters
Your employer applies NI rates based on your category letter, shown on your payslip. Most employees are category A.
| Letter | Who it applies to |
|---|---|
| A | Standard rate — most employees not covered by another category |
| B | Married women and widows with a valid Married Woman's Reduced Rate election |
| C | Employees over State Pension age — no employee NI due (employer NI still applies) |
| H | Apprentices under 25 |
| J | Employees who can defer NI because they already pay it through another job |
| M | Employees under 21 — 0% employer NI up to the Upper Secondary Threshold |
| V | Armed forces veterans — 0% employer NI in their first year of civilian employment |
| X | Employees who don't pay NI at all, e.g. under 16 |
| Z | Employees under 21 who can also defer NI (multiple employments) |
Freeport and Investment Zone Special Tax Site employers use separate equivalents (F, I, L, S and N, E, D, K) mirroring categories A, B, J and C. Source: GOV.UK — National Insurance category letters.
Frequently asked questions
What are the National Insurance rates for 2026/27?
Employees pay Class 1 NI at 8% on earnings between the Primary Threshold (£12,570/year, £242/week) and the Upper Earnings Limit (£50,270/year, £967/week), then 2% above that. Employers pay 15% on earnings above the £5,000 secondary threshold, with no upper limit.
What is the NI Lower Earnings Limit (LEL)?
The Lower Earnings Limit is £129/week (£6,708/year) for 2026-27. Earnings at or above the LEL (even below the Primary Threshold, where no NI is actually paid) count as a qualifying week towards your State Pension and other contributory benefits.
What do NI category letters mean?
Category letters tell your employer which NI rates to apply. Letter A is standard for most employees; other letters apply reduced or zero rates for specific groups such as apprentices under 25 (H), under-21s (M), and veterans in their first year back in civilian work (V). See the full table below.
Do self-employed people pay Class 2 or Class 4 NI?
Self-employed profits above the Small Profits Threshold (£7,105 for 2026-27) are treated as having Class 2 contributions paid automatically, with no separate Class 2 payment required. Below that threshold, Class 2 is voluntary at £3.65/week if you want to protect your State Pension record. Class 4 NI (6% then 2%) applies to profits above £12,570 regardless.
What is Class 1A and Class 1B NI?
Class 1A NI is paid by employers on most taxable benefits-in-kind (company cars, private medical insurance, etc.) at the same 15% rate as standard employer NI. Class 1B applies to items included in a PAYE Settlement Agreement, also at 15%.
How much can employer NI be reduced by the Employment Allowance?
Eligible employers can reduce their employer NI bill by up to £10,500 for 2026-27, provided their employer NI liability was below £100,000 in the previous tax year. Single-director companies with no other employees can't claim it.
Sources
For employees
Last updated July 2026. Reflects 2026-27 and 2025-26 tax year rates.
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