Employee Class 1
| Earnings (annual) | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Over £50,270 | 2% |
Employer Class 1
Employers pay 15% on each employee's earnings above £5,000 a year. Many small employers can claim an Employment Allowance to reduce their bill. Employer NI doesn't appear on your payslip, but it affects what employers can afford to pay.
Self-employed Class 4
Sole traders pay 6% on profits between £12,570 and £50,270 and 2% above. Class 2 is no longer compulsory, but people with low profits can pay it voluntarily to build State Pension entitlement.
Category letters
Your payslip shows a letter that decides which rates apply.
- A: standard rate for most employees
- C: over State Pension age, no employee NI
- H: apprentice under 25
- M: under 21
- J: deferred because you pay NI in another job
Keep the pay period attached
An annual NI estimate can help with planning, but a payslip records a particular payment. Keep its category and period alongside the amount when investigating a difference.
Try it with your own numbers
Calculate employee Class 1 National Insurance for 2026/27.
Frequently asked questions
Do I pay NI after State Pension age?
Not as an employee. Your employer still pays employer NI.
Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab) · National Insurance rates and category letters (opens GOV.UK in a new tab)
Is NI calculated yearly?
No, for employees it's calculated each pay period independently.
Check it on GOV.UK: National Insurance rates and category letters (opens GOV.UK in a new tab)
Sources
Tax year 2026/27. Check these official sources for current rules and deadlines.
Related calculators
- National Insurance Calculator — Calculate employee Class 1 National Insurance for 2026/27.
Related guides
- How PAYE Tax Works — A plain-English explanation of PAYE: how employers deduct tax, what cumulative coding means, and why your payslip changes month to month.
- Tax for the Self-Employed — How sole traders are taxed in the UK: Income Tax on profit, Class 4 NI, allowable expenses and payments on account.
- Salary Sacrifice Explained — How salary sacrifice works for pensions, electric cars and cycle schemes, how much tax and NI you save, and the downsides to check.