National Insurance Calculator
National Insurance (NI) is a tax on your earnings, separate from Income Tax. As an employee you pay Class 1 National Insurance: 8% on earnings between the Primary Threshold and the Upper Earnings Limit, and 2% on earnings above that.
Enter your gross pay to see your NI deduction for the selected tax year.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: £40,000 a year in 2026/27
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Your National Insurance | NI at 8% | NI at 2% | Effective NI rate | You keep after NI |
|---|---|---|---|---|---|
| £25,000 salary All at the main rate | £994.40 | £994.40 | £0.00 | 4.0% | £24,005.60 |
| £40,000 salary All at the main rate | £2,194.40 | £2,194.40 | £0.00 | 5.5% | £37,805.60 |
| £60,000 salary 2% on earnings above £50,270 | £3,210.60 | £3,016.00 | £194.60 | 5.4% | £56,789.40 |
| £100,000 salary Mostly at 2% | £4,010.60 | £3,016.00 | £994.60 | 4.0% | £95,989.40 |
Important assumptions
- Uses the standard "category A" employee rate. Some employees (under 21s, apprentices, over State Pension age) have different or no NI.
- Does not include employer National Insurance.
- NI is calculated on employment earnings before pension if paid by salary sacrifice.
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
What are the employee National Insurance rates for 2026/27?
Employees pay 8% on earnings between the Primary Threshold (£12,570 a year) and the Upper Earnings Limit (£50,270), and 2% on anything above that.
Is National Insurance the same as Income Tax?
No. They are separate taxes. Income Tax uses your Personal Allowance and rate bands; NI is based on earnings thresholds and only applies to employment income (and self-employed profits via Class 4).
Do I pay NI on interest or rental income?
No. Class 1 NI is only charged on employment earnings. Savings and rental income are not subject to employee NI.
Why does my NI stay the same when my pay rises?
NI uses thresholds, not bands like Income Tax. Once you earn above the Upper Earnings Limit (£50,270 a year in 2026/27), you only pay 2% on the extra — which is why the deduction grows much more slowly above that level.
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View calculatorRelated guides
New to the topic? Read a plain-English guide on salary & tax, with worked examples and tips.
How UK Income Tax works
The tax-free allowance, rate bands and how PAYE takes tax from your pay.
Read the guide TaxPAYE explained
How pay as you earn collects Income Tax and NI from your salary.
Read the guide TaxUnderstanding tax bands
Basic, higher and additional rate explained with worked examples.
Read the guide TaxHow to read a payslip
Every line on your pay slip decoded — payments, deductions, year-to-date, and why a bonus month looks different.
Read the guide TaxUK tax rates and allowances 2026/27
Every UK tax rate and allowance for the 2026/27 tax year in one place — income tax, National Insurance, VAT, dividends, corporation tax, student loans and more.
Read the guide TaxHigh Income Child Benefit Charge explained
How the High Income Child Benefit Charge works — the £60,000 threshold, the 1% clawback and what you repay.
Read the guide TaxPension tax relief explained
How pension tax relief works — 20% added at source, extra relief for higher and additional-rate taxpayers, and the annual allowance.
Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.