National Insurance Calculator UK
Last updated: February 2026
Calculate your NI contributions as employee, self-employed, or employer
Calculate Your National Insurance
Your National Insurance for 2025/26
| Earnings Band | Rate | Earnings in Band | NI Due |
|---|
National Insurance Rates 2025/26
Class 1 (Employees)
| £0 - £12,570 | 0% |
| £12,570 - £50,270 | 8% |
| Above £50,270 | 2% |
Class 4 (Self-Employed)
| £0 - £12,570 | 0% |
| £12,570 - £50,270 | 6% |
| Above £50,270 | 2% |
Employer NI
| £0 - £5,000 | 0% |
| Above £5,000 | 15% |
| Employment Allowance | Up to £10,500 |
Flat Rate Classes
| Class 2 (self-employed) | £3.50/week |
| Class 3 (voluntary) | £17.75/week |
What NI Pays For
- State Pension entitlement
- Contribution-based JSA
- Maternity Allowance
- Statutory Sick Pay entitlement
- Bereavement benefits
Key Thresholds 2025/26
- Primary Threshold: £12,570/year
- Upper Earnings Limit: £50,270/year
- Secondary Threshold: £5,000/year
- Lower Earnings Limit: £6,500/year
- Small Profits Threshold: £6,845/year
Understanding National Insurance Classes
| Class | Who Pays | Rate (2025/26) | What It Covers |
|---|---|---|---|
| Class 1 | Employees | 8% / 2% | State Pension, JSA, MA, SSP |
| Class 1 (Employer) | Employers | 15% | NHS funding, social security |
| Class 2 | Self-employed | £3.50/week | State Pension, MA, BSP |
| Class 3 | Voluntary | £17.75/week | Fill gaps for State Pension |
| Class 4 | Self-employed | 6% / 2% | No benefits - just tax |
NI and Your State Pension
Your State Pension depends on your National Insurance record:
- 35 qualifying years: Full new State Pension (£230.25/week in 2025/26)
- 10+ qualifying years: Some State Pension
- Under 10 years: No State Pension entitlement
You can check your NI record and State Pension forecast on the GOV.UK website.
When You Don't Pay NI
- Over State Pension age: Employees don't pay NI (employers still do)
- Earnings below threshold: Under £12,570/year for employees
- Self-employed profits below £6,845: No Class 2 required
- Certain benefits: NI credits given for UC, MA, Carer's Allowance
- Child Benefit recipients: Automatic NI credits if child under 12
How to Use This Calculator
Our National Insurance calculator makes it easy to work out exactly how much NI you will pay in the 2025/26 tax year. Start by selecting your employment type using the three tabs at the top of the calculator: Employee, Self-Employed, or Employer. Each tab is tailored to show the relevant NI classes and rates for your situation.
For employees, enter your annual gross salary (your total pay before any deductions) in the input field. You can choose to view results as an annual, monthly, or weekly figure using the dropdown menu. If you have reached State Pension age (currently 66), select "Yes" for the pension age question, and the calculator will show that you have no NI liability.
For the self-employed, enter your annual taxable profit (your total business income minus allowable expenses). The calculator will automatically compute both your Class 2 flat-rate NI and your Class 4 profit-based NI. If your profits fall below £6,845, you can indicate that you are not paying Class 2 contributions.
For employers, enter your employee's annual salary to see the employer NI cost. If your business qualifies for the Employment Allowance (a £10,500 annual reduction available to most small and medium businesses), select "Yes" to see the discounted figure. Once you have entered your details, click "Calculate National Insurance" and your full breakdown will appear instantly below, including a detailed table showing exactly how much NI is charged in each earnings band.
Worked Examples: Employee NI Calculations
The following examples demonstrate how employee Class 1 National Insurance is calculated for the 2025/26 tax year. Employees pay 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), and 2% on any earnings above the Upper Earnings Limit.
Example 1: Salary of £25,000
On a £25,000 annual salary, all earnings fall within the main NI band:
- Earnings subject to NI: £25,000 - £12,570 = £12,430
- NI at 8%: £12,430 x 0.08 = £994.40 per year
- Monthly NI deduction: £994.40 / 12 = £82.87
- Weekly NI deduction: £994.40 / 52 = £19.12
- No earnings above £50,270, so the 2% rate does not apply
Example 2: Salary of £35,000
A £35,000 salary is still entirely within the main 8% NI band:
- Earnings subject to NI: £35,000 - £12,570 = £22,430
- NI at 8%: £22,430 x 0.08 = £1,794.40 per year
- Monthly NI deduction: £1,794.40 / 12 = £149.53
- Weekly NI deduction: £1,794.40 / 52 = £34.51
- Effective NI rate on total salary: 5.1%
Example 3: Salary of £60,000
At £60,000, your earnings cross the Upper Earnings Limit, so both the 8% and 2% rates apply:
- Earnings in the 8% band: £50,270 - £12,570 = £37,700
- NI at 8%: £37,700 x 0.08 = £3,016.00
- Earnings in the 2% band: £60,000 - £50,270 = £9,730
- NI at 2%: £9,730 x 0.02 = £194.60
- Total annual NI: £3,016.00 + £194.60 = £3,210.60 per year
- Monthly NI deduction: £3,210.60 / 12 = £267.55
- Effective NI rate on total salary: 5.4%
Example 4: Salary of £100,000
On a £100,000 salary, a significant portion of earnings falls into the 2% band above the Upper Earnings Limit:
- Earnings in the 8% band: £50,270 - £12,570 = £37,700
- NI at 8%: £37,700 x 0.08 = £3,016.00
- Earnings in the 2% band: £100,000 - £50,270 = £49,730
- NI at 2%: £49,730 x 0.02 = £994.60
- Total annual NI: £3,016.00 + £994.60 = £4,010.60 per year
- Monthly NI deduction: £4,010.60 / 12 = £334.22
- Effective NI rate on total salary: 4.0%
Notice how the effective NI rate actually decreases as salary increases. This is because the 2% rate above £50,270 is much lower than the 8% main rate, and earnings below £12,570 are NI-free. At £100,000, your employer would also pay (£100,000 - £5,000) x 15% = £14,250 in employer NI on top of your salary.
Understanding NI Classes in Detail
National Insurance is divided into different classes depending on your employment status and circumstances. Understanding which class applies to you is important for knowing what you owe and what benefits you are building entitlement to.
Class 1: Employees
Class 1 is the most common type of NI and is what this calculator primarily computes. It is paid by employees through PAYE (Pay As You Earn) and deducted automatically from your wages by your employer each pay period. For 2025/26, employees pay 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. Your employer also pays a separate Class 1 contribution at 15% on your earnings above £5,000, but this does not appear on your payslip. Class 1 contributions build your entitlement to the State Pension, contribution-based Jobseeker's Allowance, Employment and Support Allowance, Maternity Allowance, and Bereavement Support Payment.
Class 2: Self-Employed
Class 2 is a flat-rate contribution paid by self-employed people with profits above the Small Profits Threshold of £6,845 per year. The rate for 2025/26 is £3.50 per week (£182.00 per year). Class 2 is collected through your annual Self Assessment tax return rather than through PAYE. Paying Class 2 NI builds your entitlement to the State Pension and Maternity Allowance. If your profits are below £6,845, you are not required to pay Class 2, but you can choose to pay voluntarily to protect your pension record.
Class 3: Voluntary Contributions
Class 3 contributions are voluntary payments you can make to fill gaps in your National Insurance record. The rate for 2025/26 is £17.75 per week (£923.00 per year). You might need Class 3 contributions if you had years where you did not work, lived abroad, or earned below the Lower Earnings Limit. Each qualifying year you add increases your State Pension entitlement, so paying Class 3 can be an excellent investment if you are short of the 35 years needed for a full State Pension. You can usually fill gaps going back up to 6 years.
Class 4: Self-Employed Profits
Class 4 NI is paid by self-employed people on their annual profits and is calculated alongside their income tax through Self Assessment. For 2025/26, the rate is 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Unlike Class 1 and Class 2, Class 4 contributions do not count towards any benefit entitlements. They are effectively an additional tax on self-employment income. Class 4 is charged in addition to Class 2, so self-employed people pay both classes simultaneously.
NI and Your State Pension
Your National Insurance record is the single most important factor in determining how much State Pension you will receive in retirement. The new State Pension, which applies to anyone reaching State Pension age from 6 April 2016 onwards, requires 35 qualifying years of NI contributions or credits for the full amount of £230.25 per week (£11,973 per year) in 2025/26.
If you have fewer than 35 qualifying years, your State Pension is reduced proportionally. For example, with 20 qualifying years, you would receive 20/35ths of the full amount, which is approximately £131.57 per week. You need a minimum of 10 qualifying years to receive any State Pension at all. With fewer than 10 years on your record, you would receive nothing.
A qualifying year is any tax year in which you have paid or been credited with enough NI contributions. For employees, earning above the Lower Earnings Limit (£6,500 per year in 2025/26) gives you a qualifying year, even if your earnings are below the Primary Threshold where actual NI payments begin. For the self-employed, paying Class 2 NI provides a qualifying year.
You can check your NI record online by signing into your Personal Tax Account on the GOV.UK website. This will show you how many qualifying years you have, any gaps in your record, and a forecast of your State Pension amount. If you identify gaps, you may be able to fill them by paying voluntary Class 3 contributions at £17.75 per week (£923.00 per year). Given that each additional qualifying year adds roughly £6.58 per week (£342.14 per year) to your State Pension for life, voluntary contributions can offer an exceptional return on investment, potentially paying for themselves within just three years of receiving your pension.
Frequently Asked Questions
Pro Tips for Accurate Results
- Double-check your input values before calculating
- Use the correct unit format (metric or imperial)
- For complex calculations, break them into smaller steps
- Bookmark this page for quick future access
Understanding Your Results
Our National Insurance Calculator provides:
- Instant calculations - Results appear immediately
- Accurate formulas - Based on official UK standards
- Clear explanations - Understand how results are derived
- 2025/26 updated - Using current rates and regulations
Common Questions
Is this calculator free?
Yes, all our calculators are 100% free to use with no registration required.
Are the results accurate?
Our calculators use verified formulas and are regularly updated for accuracy.
Can I use this on mobile?
Yes, all calculators are fully responsive and work on any device.
People Also Ask
Key National Insurance Rates & Thresholds 2025/26
National Insurance contributions fund the UK State Pension, NHS, and benefits system. For the 2025/26 tax year (6 April 2025 to 5 April 2026), HMRC has set the following rates and thresholds. Understanding these figures is essential for accurate payroll planning, self-assessment returns, and retirement forecasting.
Employee Class 1 NI Rates (Employed Earners)
| Threshold | Annual Amount | Weekly Amount | NI Rate |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £6,500 | £125 | 0% (but qualifies for State Pension) |
| Primary Threshold (PT) | £12,570 | £242 | 8% (employee starts paying) |
| Upper Earnings Limit (UEL) | £50,270 | £967 | 2% (reduced rate above UEL) |
| Secondary Threshold (Employer) | £5,000 | £96 | 15% (employer NI, no upper limit) |
Self-Employed NI: Class 2 and Class 4 Rates
| NI Class | Who Pays | Rate / Amount | Earnings Band |
|---|---|---|---|
| Class 2 | Self-employed (profits above £6,845) | £3.50 per week | Flat rate |
| Class 4 (main rate) | Self-employed | 6% | £12,570 - £50,270 |
| Class 4 (additional rate) | Self-employed | 2% | Above £50,270 |
| Class 3 (voluntary) | Anyone filling NI gaps | £17.75 per week | Voluntary |
Employer NI vs Employee NI: Key Differences
Employer and employee NI are charged at different rates and on different thresholds. Employees pay 8% on earnings between £12,570 and £50,270 (then 2% above), while employers pay 15% on all earnings above £5,000 with no upper limit. This means that for a high earner on £100,000, the employer pays £14,250 in NI while the employee pays roughly £4,010.60. Employer NI is a hidden cost of employment that does not appear on employee payslips but significantly affects total employment costs.
How NI Affects Your State Pension
Your National Insurance record directly determines your State Pension entitlement. You need 35 qualifying years to receive the full new State Pension of £230.25 per week (£11,973 per year) in 2025/26. With just 10 qualifying years, you receive a proportional amount. Each year you earn above the Lower Earnings Limit (£6,500) counts as a qualifying year. If you have gaps in your record, perhaps from time spent abroad, career breaks, or low-earning years, you can fill them by paying voluntary Class 3 contributions at £17.75 per week. You can usually go back up to 6 years to fill gaps, and HMRC had extended the deadline for filling gaps back to 2006, but this expired in April 2025.
Worked Examples: NI Calculations Step by Step
Example 1: Employee Earning £30,000
Sarah is employed full-time with a gross annual salary of £30,000. She pays Class 1 employee NI.
- Earnings between Primary Threshold and UEL: £30,000 - £12,570 = £17,430
- NI at 8%: £17,430 × 0.08 = £1,394.40 per year
- Monthly NI deduction: £1,394.40 / 12 = £116.20
- No earnings above UEL, so no 2% rate applies
Employer also pays: (£30,000 - £5,000) × 15% = £3,750 per year in employer NI on top of Sarah's salary.
Example 2: Higher Earner on £65,000
James earns £65,000 per year as a senior manager. His NI calculation involves both the 8% and 2% rates.
- Earnings between PT and UEL: £50,270 - £12,570 = £37,700 at 8% = £3,016.00
- Earnings above UEL: £65,000 - £50,270 = £14,730 at 2% = £294.60
- Total annual NI: £3,016.00 + £294.60 = £3,310.60 per year
- Monthly NI deduction: £3,310.60 / 12 = £275.88
Employer pays: (£65,000 - £5,000) × 15% = £9,000 per year. James's total employment cost to his company is £74,000.
Example 3: Self-Employed with £45,000 Profit
Priya runs a freelance consultancy with annual profits of £45,000. She pays both Class 2 and Class 4 NI through Self Assessment.
- Class 2 NI: £3.50 × 52 weeks = £182.00 per year
- Class 4 NI at 6%: (£45,000 - £12,570) × 6% = £32,430 × 0.06 = £1,945.80
- No earnings above UEL (£50,270), so no 2% additional rate
- Total NI: £182.00 + £1,945.80 = £2,127.80 per year
Note: Priya also pays income tax on her profits. Combined with NI, her total deductions on £45,000 profit would be approximately £8,657 (income tax) + £2,128 (NI) = £10,785, leaving net income of around £34,215.
Additional NI Questions Answered
What happens to NI if I have two jobs?
If you have multiple employments, you pay Class 1 NI on each job separately. However, there is a maximum annual NI limit. If you earn above certain thresholds across all jobs, you may overpay NI and can claim a refund from HMRC at the end of the tax year. Ask your secondary employer to apply NI category letter B to defer some contributions if your combined earnings significantly exceed the UEL.
Can salary sacrifice reduce my NI bill?
Yes. Salary sacrifice arrangements, such as pension contributions, cycle-to-work schemes, or childcare vouchers, reduce your gross salary before NI is calculated. For example, if you sacrifice £5,000 into your pension from a £35,000 salary, NI is charged on £30,000 instead. This saves you £400 in employee NI (8% of £5,000) and your employer saves £750 in employer NI (15% of £5,000). Many employers share their NI saving with you as additional pension contributions.
Do I pay NI on dividends, rental income, or savings interest?
No. National Insurance is only payable on employment income (wages/salary) and self-employment profits. Dividend income, rental income, savings interest, capital gains, and pension income are all exempt from NI. This is why many company directors pay themselves a small salary at the Primary Threshold (£12,570) and take the rest as dividends to minimise NI liability. However, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate).
How do I check my National Insurance record and fill gaps?
You can check your NI record online through your Personal Tax Account at gov.uk. It shows how many qualifying years you have and any gaps. If you have fewer than 35 qualifying years and are approaching State Pension age, filling gaps with voluntary Class 3 contributions (£17.75/week = £923.00/year) can be extremely worthwhile. Each additional qualifying year adds approximately £328.91 to your annual State Pension for life, meaning a single year's voluntary payment could be recouped in under 3 years of pension payments.
Understanding the National Insurance System in Depth
How National Insurance Differs from Income Tax
Although NI and income tax are both deducted from your pay, they work differently and fund different things. Income tax applies to all taxable income, including employment income, pensions, rental income, dividends, and savings interest. National Insurance, by contrast, only applies to employment earnings and self-employment profits. NI contributions build your entitlement to the State Pension and contributory benefits like Jobseeker's Allowance and Employment and Support Allowance. Income tax goes into the general Exchequer pot. Understanding this distinction matters because strategies to reduce income tax (such as earning through dividends) do not necessarily help with NI, and vice versa.
NI Categories and Letter Codes Explained
Your employer uses an NI category letter to determine how much NI both you and they pay. The most common categories are: Category A (standard employees, the default), Category B (married women who elected before 1977 for reduced rate), Category C (employees over State Pension age, no employee NI but employer still pays), Category H (apprentices under 25, employer NI only above £50,270), Category M (employees under 21, employer NI only above £50,270), and Category V (veterans in first 12 months of civilian employment). Your NI category letter appears on your payslip and determines your contribution rates. If you believe your category is wrong, contact your employer's payroll department.
NI Contributions and Maternity, Paternity, and Sick Pay
Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and Statutory Sick Pay (SSP) are all subject to NI contributions if they exceed the Lower Earnings Limit. The first six weeks of SMP are paid at 90% of average weekly earnings, and NI applies to this amount in full. The remaining 33 weeks at £184.03 per week (2025/26) fall below the Primary Threshold on a weekly basis, so no employee NI is due during this period, though they still count as qualifying weeks for State Pension purposes. Employers can reclaim 92% of SMP paid (or 100% if the business qualifies for Small Employers' Relief, meaning total NI bill of £45,000 or less in the qualifying year). Understanding these rules is vital for both employers budgeting for parental leave and employees planning their finances during time off.
Director NI Calculations: Annual vs Cumulative Methods
Company directors have their NI calculated differently from regular employees. HMRC offers two methods: the annual earnings period method (default) and the alternative method (cumulative). Under the annual method, the full annual thresholds (Primary Threshold £12,570, UEL £50,270) are applied when calculating the final NI liability at year-end. This means directors who receive irregular pay, large bonuses, or dividends do not overpay NI month by month. Under the alternative method, NI is calculated cumulatively each pay period, which smooths the cash flow impact but may result in the same annual total. Most accountants recommend the standard annual method for directors who pay themselves a small salary and extract remaining profits as dividends, as it ensures NI is correctly calculated against the yearly thresholds.
Voluntary NI Contributions: When They Are Worth Paying
Paying voluntary Class 3 NI contributions at £17.75 per week (£923.00 per year) can be one of the best financial investments available. Each qualifying year adds approximately £5.49 per week (£285.48 per year) to your State Pension. This means your investment of £923.00 is recouped in just 3.18 years of pension payments. If you receive the State Pension for 20 years (the average), one year of voluntary contributions would yield approximately £5,709 in total pension payments, representing a return of over 500% on your original payment. You can check your NI record online through your Government Gateway Personal Tax Account to identify any gaps. Years between 2006 and 2016 can still be filled under the extended deadline, but this extension may not be available indefinitely.
National Insurance for Self-Employed: Class 2 and Class 4 Explained
If you are self-employed, your NI obligations differ considerably from employed workers. You pay Class 2 NI at a flat rate of £3.50 per week (collected through Self Assessment) and Class 4 NI based on your annual profits. Class 4 NI is charged at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Unlike employment, there is no employer paying NI on top of your earnings, which means the total NI burden for self-employed individuals is significantly lower than the combined employee and employer NI for an employed person on the same income. For example, someone self-employed with £40,000 profit pays approximately £1,828 in total NI (Class 2 + Class 4), whereas an employed person on £40,000 pays £2,194 in employee NI and their employer pays an additional £5,250, making the total NI cost of employment £7,444. This differential is one reason why HMRC is vigilant about disguised employment arrangements.
NI Refunds: When You May Have Overpaid
You may have overpaid NI in several circumstances and be entitled to a refund. The most common situation is having two or more jobs where the combined earnings exceed the Upper Earnings Limit. Since each employer applies NI independently, you may end up paying 8% on more earnings than you should. HMRC should refund the overpayment automatically after the end of the tax year, but this can take 6 to 12 months. If you believe you have overpaid, you can apply for an early refund using form CA5610. Other reasons for refunds include: paying employee NI after State Pension age (your employer should have stopped deductions), having the wrong NI category letter, or paying NI when you were below the Primary Threshold. Self-employed people may also overpay Class 4 NI if their actual profits turn out lower than estimated payments on account. Any overpayment is refunded through your Self Assessment calculation.
How NI Interacts with Tax-Free Childcare and Benefits
National Insurance contributions affect your eligibility for various state benefits. To claim contribution-based Jobseeker's Allowance (new style JSA), you need NI contributions in the two relevant tax years before your claim. For contribution-based Employment and Support Allowance (new style ESA), similar rules apply. Bereavement Support Payment requires the deceased to have paid NI for at least 25 weeks in one tax year. Credits (not actual contributions) are given to parents claiming Child Benefit for children under 12, carers receiving Carer's Allowance, and people receiving certain other benefits. These credits protect your State Pension record even when you are not working. If you are a grandparent regularly caring for grandchildren while the parent works, the parent can transfer their NI credit for Child Benefit to you through an application to HMRC.
NI and the Personal Allowance: How They Differ
A common misconception is that the Personal Allowance (£12,570) and the NI Primary Threshold (also £12,570) are the same thing. While the amounts are currently aligned, they function differently. The Personal Allowance is the amount you can earn before paying income tax, and it is reduced by £1 for every £2 earned above £100,000 (the so-called 60% tax trap). The Primary Threshold, however, does not taper away at any income level. You always pay 8% NI only on the portion of earnings between £12,570 and £50,270, regardless of whether you earn £50,000 or £500,000. This means that someone earning £125,140 loses their entire Personal Allowance and pays income tax on all earnings, but their NI Primary Threshold remains at £12,570. Additionally, the Personal Allowance applies to all income sources (employment, pensions, rental income), while NI thresholds only apply to employment and self-employment income.
Changes to NI Over Recent Years
National Insurance rates have changed significantly in recent years. In 2022/23, the Government introduced a temporary 1.25% NI surcharge to fund the Health and Social Care Levy, taking employee rates from 12% to 13.25%. This was reversed in November 2022, and further reduced in the Spring 2024 Budget from 12% to 10%, and then again in the Autumn 2024 Budget from 10% to 8%. These reductions were funded partly by increasing the employer NI rate from 13.8% to 15% and lowering the employer threshold from £9,100 to £5,000 from April 2025. The net effect is that employees are paying less NI than at any point since 2021, while employers are paying considerably more. The Primary Threshold was also permanently aligned with the Personal Allowance at £12,570 from July 2022, previously having been lower at £9,880. These changes mean that employees on typical salaries are keeping more of their gross pay, but the total cost of employing someone has increased for businesses.
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