Tax code2 min read · Updated 19 October 2026
National Insurance explained: rates, thresholds and what it pays for
How employee National Insurance works in 2026/27, what you pay at different salaries, and how it differs from income tax.
The rates
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Over £50,270 | 2% |
What you pay
| Salary | National Insurance a year |
| £25,000 | £994 |
| £30,000 | £1,394 |
| £40,000 | £2,194 |
| £50,000 | £2,994 |
| £60,000 | £3,211 |
| £80,000 | £3,611 |
What it is for
It builds your qualifying years for the State Pension and some benefits. Your payslip shows it next to tax.
Common questions
What is the National Insurance rate?
8% on pay between £12,570 and £50,270, and 2% above, for employees.
Do I pay NI and income tax?
Yes. They are separate charges on the same pay.