How National Insurance is worked out
Employees pay Class 1 National Insurance on their earnings. For 2026/27 you pay nothing on the first £12,570, then 8% on earnings between £12,570 and £50,270, and 2% on anything above £50,270. Unlike Income Tax, National Insurance does not use a wider personal allowance — it has its own starting point.
You stop paying National Insurance once you reach State Pension age, even if you carry on working.
2026/27 employee NI rates
| Earnings | NI rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Over £50,270 | 2% |
Frequently asked questions
How much National Insurance will I pay on £45,000?
About £2,594 for 2026/27 — that is 8% of the £32,430 you earn between £12,570 and £45,000.
What are the NI rates for 2026/27?
Employees pay 8% on earnings between £12,570 and £50,270, and 2% above £50,270. Earnings below £12,570 are free of NI.
Do I pay National Insurance over State Pension age?
No. Once you reach State Pension age you stop paying Class 1 National Insurance, even if you keep earning.
Is National Insurance different in Scotland?
No. National Insurance is the same across the whole UK. Only Income Tax bands differ in Scotland.
Is National Insurance the same as Income Tax?
No, they are separate. This calculator shows NI only — use the Take-Home Pay tool to combine Income Tax and NI.