National Insurance Calculator — 2026/27
National Insurance is the second deduction on every payslip, and the one people understand least. Employees pay Class 1 contributions: nothing on the first £12,570 a year, 8% on earnings up to £50,270, and 2% on everything above. Enter your salary to see exactly what you pay.
| Gross salary | — |
|---|---|
| Personal Allowance | — |
| Income tax | — |
| National Insurance | — |
| Pension | — |
| Student loan | — |
| Overall deduction rate | — |
Income tax by band
| Band | Taxed amount | Tax |
|---|
Pension is modelled as a net pay arrangement (it reduces taxable pay, not National Insurance). Student loan thresholds 2026/27: Plan 1 £26,900 · Plan 2 £29,385 · Plan 4 £33,795 · Plan 5 £25,000 · Postgraduate £21,000.
Employee National Insurance rates 2026/27
| Annual earnings | Rate |
|---|---|
| Up to £12,570 (Primary Threshold) | 0% |
| £12,570 to £50,270 (up to Upper Earnings Limit) | 8% |
| Above £50,270 | 2% |
National Insurance is worked out per pay period, not cumulatively like income tax — a bonus month costs more NI in that month and does not balance out later. It also builds your entitlement to the State Pension: you generally need 35 qualifying years for the full amount. More in our National Insurance explained guide.
Frequently asked questions
How much National Insurance do I pay on £40,000?
£2,194.40 a year in 2026/27: 8% of the £27,430 you earn between £12,570 and £50,270 (your whole salary is below the upper limit, so no 2% slice applies).
Why does National Insurance drop to 2%?
The 2% rate above £50,270 mirrors the structure of income tax in reverse — NI is charged most heavily on middle earnings. Combined with 40% income tax, earnings above £50,270 lose 42% in total until £100,000.
Do I pay National Insurance after State Pension age?
No. Employees stop paying Class 1 National Insurance once they reach State Pension age, even if they keep working. Your employer may still pay employer contributions.