For the 2026 to 2027 tax year, most employees pay 8% National Insurance on weekly earnings from £242.01 to £967 and 2% above £967. Employers pay 15% on earnings above £96 a week. Self-employed people pay Class 4 at 6% on profits from £12,570 to £50,270 and 2% above that. These rates run from 6 April 2026 to 5 April 2027, as of October 2026.
Those are the headline numbers, but the rate you or your staff pay depends on a category letter and on which band each pound of pay falls into. Here's every main rate from HMRC's own tables, plus the parts of the system people tend to miss.
Employee Class 1 rates (category A)
Most employees are category A. This is what's deducted from their pay:
| Weekly earnings | Monthly earnings | Employee rate |
|---|---|---|
| £129 to £242 | £559 to £1,048 | 0% |
| £242.01 to £967 | £1,048.01 to £4,189 | 8% |
| Over £967 | Over £4,189 | 2% |
GOV.UK's own example: a category A employee earning £1,000 in a week pays nothing on the first £242, 8% (£58) on earnings between £242.01 and £967, and 2% (£0.66) on the rest. That's £58.66 for the week.
Employer Class 1 rates
Employers pay 15% for category A staff on earnings above £96 a week (£417 a month). The employer threshold is much lower than the employee one, which is why a part-time role can cost an employer National Insurance while the employee pays none. Employers also pay Class 1A at 15% on expenses and benefits for 2026 to 2027. My guide to employer's National Insurance covers the Employment Allowance and how to budget for it.
The category letters that change the rate
This is the part people miss. Some letters cut the employee rate, and some cut the employer's bill to nothing on most of the pay:
| Letter | Who it's for | Effect |
|---|---|---|
| A | Most employees | Standard rates |
| B | Married women and widows with a certificate of election | Employee rate of 1.85% in the main band |
| C | Employees over State Pension age | No employee contributions; employer still pays 15% |
| H | Apprentices under 25 | Employer pays 0% up to £967 a week |
| J | Employees deferring because they pay in another job | Employee rate of 2% in the main band |
| M | Employees under 21 | Employer pays 0% up to £967 a week |
| V | Veterans in their first job since leaving the armed forces | Employer pays 0% up to £967 a week |
| Z | Employees under 21 who are deferring | Employee 2%, employer 0% up to £967 a week |
| X | Employees who don't pay, for example under 16 | No contributions |
If you employ under 21s, apprentices under 25 or veterans, check the letter on every payslip. Running them on letter A means paying employer National Insurance you don't owe. There are separate letters for staff at special tax sites in Freeports (F, I, L, S) and Investment Zones (N, E, D, K).
Self-employed rates
| Annual profit | What you pay for 2026 to 2027 |
|---|---|
| Under £7,105 | Nothing. Voluntary Class 2 is £3.65 a week if you want to protect your record |
| £7,105 or more | Class 2 is treated as paid, so your record is protected at no cost |
| Over £12,570 up to £50,270 | Class 4 at 6% |
| Over £50,270 | Class 4 at 2% on the profit above £50,270 |
Most people pay Class 2 and Class 4 through Self Assessment. You stop paying Class 4 from the 6 April after you reach State Pension age. There's more detail in the Class 4 National Insurance explainer.
If you're paid monthly
Payroll runs on the monthly figures when staff are paid monthly. For a category A employee, nothing is deducted on pay up to £1,048 a month, 8% applies from £1,048.01 to £4,189, and 2% applies above £4,189. The employer's 15% starts at £417 a month. Those are HMRC's 2026 to 2027 monthly equivalents, as of October 2026, and they're what most payroll software uses behind the scenes.
Filling gaps in your record
National Insurance isn't only a cost. It's how you qualify for the State Pension and certain benefits, so gaps matter. GOV.UK sets out three routes depending on your situation:
- If you earn less than £129 a week from one job, you can choose to pay voluntary Class 3 contributions to cover gaps.
- If you're self-employed with profits under £7,105, you can pay voluntary Class 2 at £3.65 a week, as of October 2026.
- If you're not working at all, voluntary Class 3 is the route GOV.UK points to.
Your National Insurance number stays the same for life and is on your payslip or P60. My guide to your National Insurance number covers how to find it.
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Three rules that catch people out
- The thresholds are per job. GOV.UK says you pay Class 1 if you earn more than £242 a week from one job, so two jobs each paying under that can mean no employee contributions on either.
- Low earners still build a record. If you earn from £129 to £242 a week from one job, you don't usually pay but may still qualify for benefits and the State Pension.
- Employees stop paying at State Pension age, but employers don't. Category C turns off the employee contribution only.
My verdict
For most people the numbers to remember are 8% and 2% as an employee, 15% as an employer and 6% and 2% if you're self-employed. If you run payroll, the category letter is where the savings hide, so check it before you check anything else.
Frequently asked questions
What are the National Insurance rates for 2026 to 2027?
Most employees pay 8% on weekly earnings from £242.01 to £967 and 2% above that. Employers pay 15% above £96 a week. The self-employed pay Class 4 at 6% on profits from £12,570 to £50,270 and 2% above, as of October 2026.
How much National Insurance do I pay on £1,000 a week?
GOV.UK's example for category A is £58.66: nothing on the first £242, £58 at 8% up to £967, and £0.66 at 2% on the rest.
What is the employer National Insurance rate?
It's 15% for 2026 to 2027 on earnings above £96 a week for category A employees, and 15% on Class 1A expenses and benefits.
Do employers pay National Insurance for under 21s?
Not on most of their pay. For category M, employers pay 0% on earnings up to £967 a week and 15% above that.
Do I pay National Insurance after State Pension age?
Employees stop paying Class 1 at State Pension age, and the self-employed stop Class 4 from the 6 April after. Employers still pay for workers over State Pension age.
What is category letter A?
It's the letter for most employees. GOV.UK says it covers all employees apart from those in groups B, C, H, J, M, V and Z.
Do self-employed people still pay Class 2?
Not if profits are £7,105 or more. Class 2 is treated as paid to protect your record. Below that, you can pay voluntary Class 2 at £3.65 a week.
What are the monthly National Insurance thresholds?
For a category A employee in 2026 to 2027, nothing is due up to £1,048 a month, 8% applies up to £4,189 and 2% above that. Employers pay 15% from £417 a month.
