UK National Insurance Calculator 2025/26
Calculate your exact NI contributions for 2025/26. Covers Class 1 (employee & employer) and Class 2 & 4 (self-employed) with a full band-by-band breakdown.
| NI Band | Amount |
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This UK National Insurance calculator lets you work out your exact NI contributions for 2025/26 in seconds. Whether you need to know how much NI you pay as an employee, what employer National Insurance costs your business, or how to calculate Class 4 NI for your Self Assessment return — this free NIC calculator covers all three employment types with a full band-by-band breakdown.
What Is National Insurance (NIC)?
National Insurance contributions (NICs) are a tax on earned income collected by HMRC to fund the NHS, the State Pension, and welfare benefits such as Jobseeker's Allowance, Maternity Allowance, and Bereavement Support Payment. They are separate from Income Tax and are calculated on different thresholds at different rates.
If you are an employee, NI deductions are taken automatically through PAYE (Pay As You Earn) before you receive your salary. If you are self-employed, you declare and pay NI through your annual Self Assessment tax return. Employers pay their own separate Class 1 secondary contributions on top of the wages they pay — this cost never appears on an employee's payslip but significantly affects the total cost of employment.
Your NI record determines eligibility for the State Pension. You need 35 qualifying years to receive the full new State Pension. Each year you earn above the Lower Earnings Limit (LEL) of £6,396/year counts toward your record, even if no NI is actually due. You can check your NI record at any time via your Personal Tax Account on gov.uk.
Income Tax and National Insurance contributions are calculated independently. NI is only charged on earned income (wages and self-employment profits). Pension income, rental income, dividends, and savings interest are not subject to National Insurance — which is why many company directors and retirees pay very little NI relative to their total income.
Who Should Use This NI Calculator?
This national insurance contributions calculator is useful for anyone in the UK who earns income from employment or self-employment. It is designed for:
- Employees checking their monthly NI deductions from a salary or new job offer
- Employers and HR teams calculating the true cost of employment including Class 1 secondary NICs
- Self-employed individuals and sole traders estimating Class 2 and Class 4 NI before filing Self Assessment
- Freelancers and contractors budgeting their annual NI bill on variable income
- Company directors comparing salary vs dividend NI efficiency
- Payroll professionals and accountants verifying PAYE NI deductions across pay bands
- Small business owners modelling the NI impact of hiring or salary increases
- Job seekers comparing take-home pay across different salary offers
How to Calculate National Insurance — Step by Step
- Choose your employment type: Select Employee (Class 1 Primary), Employer (Class 1 Secondary), or Self-Employed (Class 2 & 4). The NI class you pay depends entirely on how you work.
- Enter your gross income: Input your annual salary, monthly pay, or weekly earnings before any deductions. For self-employed use your taxable profit (total income minus allowable business expenses).
- Select your pay period: Choose Annual, Monthly, or Weekly. The calculator converts all figures to annual for the NI calculation, then shows monthly and weekly splits in the result.
- Click Calculate: Our secure engine applies the correct NI thresholds and rates for 2025/26 to your figures and returns your result instantly.
- Review the NI breakdown: See your total annual NI, monthly and weekly amounts, and a full line-by-line breakdown showing exactly which earnings band attracted each rate.
- Export or share: Download your NI calculation as a CSV or PDF for payroll records, Self Assessment preparation, or employer budgeting.
UK National Insurance Rates & Thresholds 2025/26
All rates and thresholds below are confirmed by HMRC for the tax year 6 April 2025 to 5 April 2026. Source: gov.uk — Rates and thresholds for employers 2025 to 2026 and gov.uk — National Insurance rates and categories.
Class 1 — Employee (Primary) NIC Rates
| Earnings Band (Annual) | Weekly Equivalent | Rate |
|---|---|---|
| £0 – £12,570 (Primary Threshold) | £0 – £242/week | 0% — no NI due |
| £12,570 – £50,270 (Upper Earnings Limit) | £242 – £967/week | 8% main rate |
| Above £50,270 | Above £967/week | 2% upper rate |
Class 1 — Employer (Secondary) NIC Rates
| Earnings Band (Annual) | Monthly Equivalent | Rate |
|---|---|---|
| £0 – £5,000 (Secondary Threshold) | £0 – £417/month | 0% — no employer NI due |
| Above £5,000 | Above £417/month | 15% (increased from 13.8% in April 2025) |
The Employment Allowance allows eligible employers to reduce their annual NI bill by up to £10,500 for 2025/26. The previous £100,000 pay bill eligibility cap was removed this year.
Class 2 & Class 4 — Self-Employed NIC Rates
| NI Class | Rate | Threshold | Purpose |
|---|---|---|---|
| Class 2 (flat rate) | £3.50/week (£182/yr) | Profits ≥ £6,845 | Counts toward State Pension |
| Class 4 — main rate | 6% | Profits £12,570 – £50,270 | Paid via Self Assessment |
| Class 4 — upper rate | 2% | Profits above £50,270 | Paid via Self Assessment |
| Class 3 (voluntary) | £17.45/week | Any — to fill gaps | Protects State Pension record |
From 6 April 2025, the employer NI rate rose from 13.8% to 15% and the secondary threshold dropped from £9,100 to £5,000/year. A business employing 10 people on £30,000 each pays approximately £7,800 more per year in employer NICs than in 2024/25. Use our employer NI calculator above to model your exact costs.
NI Rates by Tax Year — How Rates Have Changed
| Tax Year | Employee Rate (Main) | Employer Rate | Employee Primary Threshold | Employer Secondary Threshold |
|---|---|---|---|---|
| 2022/23 | 12% → 13.25% | 13.8% → 15.05% | £9,880 → £12,570 | £9,100 |
| 2023/24 | 12% | 13.8% | £12,570 | £9,100 |
| Jan–Mar 2024 | 10% | 13.8% | £12,570 | £9,100 |
| 2024/25 | 8% | 13.8% | £12,570 | £9,100 |
| 2025/26 | 8% | 15% | £12,570 | £5,000 |
| 2026/27 | 8% | 15% | £12,570 | £5,000 |
NI thresholds are frozen until at least 2027/28. As wages rise, more employees are pulled into the NI net — a stealth increase known as fiscal drag. Source: HMRC NI rates history.
Worked Examples — How to Calculate NI in 2025/26
Example 1: Employee — £28,000 salary
- Earnings below Primary Threshold (£12,570): 0% NI = £0
- Earnings £12,570–£28,000 = £15,430 × 8% = £1,234.40
- No earnings above UEL (£50,270)
- Total NI deduction: £1,234.40/yr
- Monthly NI: £102.87 | Weekly: £23.74
Example 2: Employee — £60,000 salary
- Earnings below PT (£12,570): £0
- £12,570–£50,270 = £37,700 × 8% = £3,016.00
- £50,270–£60,000 = £9,730 × 2% = £194.60
- Total NI: £3,210.60/yr
- Monthly: £267.55 | Weekly: £61.74
Example 3: Employer — Employee earning £30,000
- Earnings below Secondary Threshold (£5,000): £0
- £30,000 − £5,000 = £25,000 × 15% = £3,750
- Total employment cost: £33,750
- Less Employment Allowance (if eligible)
- Compare: 2024/25 cost was £2,882.20 — +£867.80 increase
Example 4: Self-Employed — £45,000 profit
- Class 2: £3.50 × 52 = £182.00
- Class 4: £12,570–£45,000 = £32,430 × 6% = £1,945.80
- No profit above UPL (£50,270)
- Total NI via Self Assessment: £2,127.80/yr
- Deadline: 31 January 2026
Quick Reference — How Much NI Do I Pay? (2025/26)
| Annual Salary / Profit | Employee NI (Class 1) | Employer NI (Class 1) | Self-Employed NI (Class 2+4) | Monthly Employee NI |
|---|---|---|---|---|
| £8,000 | £0 | £450 | £0 | £0 |
| £10,000 | £0 | £750 | £0 | £0 |
| £12,570 (PT) | £0 | £1,135.50 | £0 | £0 |
| £15,000 | £194.40 | £1,500 | £194.40 | £16.20 |
| £20,000 | £594.40 | £2,250 | £594.40 | £49.53 |
| £25,000 | £994.40 | £3,000 | £1,176.40 | £82.87 |
| £30,000 | £1,394.40 | £3,750 | £1,476.40 * | £116.20 |
| £35,000 | £1,794.40 | £4,500 | £1,776.40 * | £149.53 |
| £40,000 | £2,194.40 | £5,250 | £2,076.40 * | £182.87 |
| £45,000 | £2,594.40 | £6,000 | £2,127.80 * | £216.20 |
| £50,270 (UEL) | £3,016.00 | £6,790.50 | £2,509.80 * | £251.33 |
| £55,000 | £3,110.60 | £7,500 | £2,603.80 * | £259.22 |
| £60,000 | £3,210.60 | £8,250 | £2,703.80 * | £267.55 |
| £75,000 | £3,510.60 | £10,500 | £3,003.80 * | £292.55 |
| £100,000 | £4,010.60 | £14,250 | £3,503.80 * | £334.22 |
| £150,000 | £5,010.60 | £21,750 | £4,503.80 * | £417.55 |
* Self-employed figures include Class 2 (£182/yr) + Class 4. Employer NI = 15% on earnings above Secondary Threshold (£5,000). Employee NI = Category A standard rates. These are estimates — use the calculator above for your exact NI figure.
NI Category Letters — Which One Are You?
Every employee is assigned an NI category letter which determines the exact rates applied to their earnings. Most employees are Category A, but several other categories apply in specific circumstances. Getting the wrong category means incorrect PAYE NI deductions — which HMRC can investigate and penalise.
| Category Letter | Who It Applies To | Employee Rate (Main Band) | Employer Rate |
|---|---|---|---|
| A | Most employees (standard) | 8% | 15% |
| B | Married women with valid reduced rate election (pre-1977) | 5.85% | 15% |
| C | Employees over State Pension age | 0% | 15% |
| H | Apprentices under 25 | 8% | 0% up to AUST |
| M | Employees under 21 | 8% | 0% up to UST (£50,270) |
| V | Veterans (first year of civilian employment) | 8% | 0% up to VUST |
| J | Employees deferring NI (multiple jobs) | 2% | 15% |
| Z | Employees under 21 who defer NI | 2% | 0% up to UST |
Source: HMRC — National Insurance rates and categories. This calculator uses Category A (standard) rates. If you are in a different category, consult your payroll team or accountant.
Company Director NI — How It Works
Company directors have a unique NI calculation method. Rather than paying NI on each pay period, HMRC uses an annual (cumulative) earnings period for directors. This means a director can draw a low salary early in the year and a large dividend later without triggering NI on each individual payment — instead, NI is assessed on their total annual earnings.
Most tax-efficient director strategies involve taking a salary just above the Lower Earnings Limit (£6,396/year) to maintain NI credits toward the State Pension, while taking the majority of income as dividends (which are not subject to NI). On a salary of £12,570 (up to the Personal Allowance), a director pays zero employee NI and the company pays zero employer NI below the £5,000 secondary threshold. Dividends up to the £500 dividend allowance are also tax-free.
Salary sacrifice pension schemes reduce your contractual salary, meaning both you and your employer pay NI on a lower amount. Sacrificing £5,000 into a pension saves an employee £400 (8% of £5,000) and saves the employer £750 (15% of £5,000). Many employers share their NI saving as an enhanced pension contribution — ask your employer if they offer this arrangement.
How to Reduce Your National Insurance Bill
There are several legitimate ways to reduce the amount of NI contributions you pay, used by employees, employers, and the self-employed alike:
- Salary sacrifice (pension): Reduces both employee and employer NI. Available through workplace pension schemes — most pension providers support this arrangement.
- Cycle to Work scheme: Salary sacrifice for a bicycle reduces NI on the sacrificed amount.
- Employment Allowance (employers): Eligible employers can offset up to £10,500 in employer NI per year — claim via PAYE (not automatic).
- Hiring under-21s or apprentices: Zero employer NI up to the Upper/Apprentice Secondary Threshold.
- Veterans hiring incentive: Zero employer NI in the first year of civilian employment for qualifying ex-forces hires.
- Dividends vs salary (directors): Dividends are not subject to NI. Structuring remuneration as dividends above the optimal salary threshold can significantly reduce total NI.
- Check your NI category: Wrong categories can lead to overpayments — especially relevant for those over State Pension age (Category C = 0% employee NI).
NI Exemptions & Special Scenarios
Several groups are exempt from paying NI, or have special rules that reduce their liability:
- Over State Pension age (66+): Employees pay zero Class 1 NI. Self-employed stop paying Class 2 and Class 4. Employers still pay secondary contributions regardless.
- Earnings below Primary Threshold (£12,570): No employee NI due. NI credits are still received if earnings exceed the Lower Earnings Limit (£6,396).
- Maternity, paternity, and adoption leave: NI credits are automatically awarded during qualifying leave periods — no contributions needed.
- Universal Credit and Carer's Allowance: NI credits awarded automatically — these protect your State Pension without requiring NI payments.
- Child Benefit recipients with children under 12: NI credits awarded automatically, protecting the State Pension of parents or carers who are not working.
- Multiple jobs: If you have two or more jobs and are likely to overpay NI above the Upper Earnings Limit, you can apply to HMRC to defer NI on one employment (Category J).
If you have gaps in your NI record — from periods of self-employment, time abroad, or years out of work — you can pay Class 3 voluntary contributions at £17.45/week (£907.40/year) for 2025/26 to fill them. Each additional qualifying year adds approximately £6.32/week to your State Pension. Check your NI record and forecast at gov.uk/check-state-pension before paying.
When & How to Pay National Insurance
Employees: NI is deducted automatically through PAYE — no action needed. Your employer calculates and submits your NI to HMRC every pay period via Real Time Information (RTI) reporting. Your payslip shows the total NI deduction alongside Income Tax.
Employers: Employer NI is paid as part of your monthly PAYE bill to HMRC, due by the 19th of each month (22nd for electronic payment). Late payment triggers penalties starting at 1% of the unpaid amount. You must also submit a Full Payment Submission (FPS) each pay run. Employer NI on benefits in kind (Class 1A) is reported on the P11D form and paid by 19 July following the tax year end.
Self-Employed: Both Class 2 and Class 4 NI are calculated through your Self Assessment tax return. The main payment deadline is 31 January following the end of the tax year (e.g., 31 January 2026 for the 2024/25 tax year). A payment on account (50% of your prior year bill) is also due by 31 July.
Missing the 31 January deadline triggers an automatic £100 fine — even if no NI is owed. Further daily penalties of £10/day apply after 3 months, and a 5% surcharge on unpaid tax after 6 months. File early; use HMRC's Self Assessment service or a qualified accountant.