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 4 and voluntary Class 2, 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 (no prior-year NI cap since Apr 2025) |
| 2025-26 | £96/wk (£5,000) | 15% | £10,500 (no prior-year NI cap since Apr 2025) |
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 4 and voluntary Class 2)
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 | £18.40 |
| 2025-26 | £17.75 |
Announced for 2027-28: Class 2, Class 3 and Lower Earnings Limit
HMRC's Budget 2026 rates table uprates these figures by September CPI from 6 April 2027. They are announced, not yet in force: the up-rating orders still have to confirm them.
| Figure | From 6 April 2027 | Now (2026-27) |
|---|---|---|
| Lower Earnings Limit (weekly) | £133/wk | £129/wk |
| Small Profits Threshold | £7,355 | £7,105 |
| Voluntary Class 2 (weekly) | £3.80 | £3.65 |
| Class 3 (weekly) | £19.05 | £18.40 |
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.
For the full employee AND employer rate for every letter — including the Upper Secondary Threshold relief for H/M/V/Z and the Freeport/Investment Zone threshold — see the dedicated NI category letters guide.
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 are the Class 2, Class 3 and Lower Earnings Limit figures for 2027-28?
HMRC's Budget 2026 rates table for 2027-28 uprates them by September CPI from 6 April 2027: the Lower Earnings Limit rises to £133 a week, the Small Profits Threshold to £7,355 (from £7,105), voluntary Class 2 to £3.80 a week and Class 3 to £19.05 a week. These are announced figures: the up-rating orders still have to confirm them.
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. Since 6 April 2025 there's no longer a £100,000 prior-year employer NI cap on eligibility — employers of any size can claim regardless of how much employer NI they paid the previous year. If your company has only one director, they must not be the only employee liable for secondary Class 1 National Insurance.
Sources
For employees
Reflects 2026-27 and 2025-26 tax year rates.
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