The 2026/27 employee bands
| Annual earnings | Monthly | Weekly | Employee rate |
|---|---|---|---|
| Up to £12,570 | Up to £1,048 | Up to £242 | 0% |
| £12,571 – £50,270 | £1,048 – £4,189 | £242 – £967 | 8% |
| Above £50,270 | Above £4,189 | Above £967 | 2% |
The 8% main rate is itself the result of two cuts: from 12% in 2023/24 to 10% in January 2024, then to 8% from April 2024. Those cuts have been retained for 2026/27. The 2% rate above the Upper Earnings Limit has applied since November 2022. Your employer pays separately on top — 15% on earnings above the £5,000 secondary threshold — which never appears on your payslip as a deduction.
Three worked examples
On £20,000 a year, only £7,430 sits inside the 8% band (£20,000 − £12,570), so annual National Insurance is £594.40 — about £49.53 a month. On £35,000, the taxable slice is £22,430 and the bill is £1,794.40 a year, or £149.53 a month. On £60,000, the 8% band is fully used (£37,700 × 8% = £3,016) plus 2% on the £9,730 above the limit (£194.60), for a total of £3,210.60 a year. Notice how the £60,000 earner pays a lower overall percentage than the £35,000 earner: that is the 2% band at work.
National Insurance is not income tax
The two deductions look alike on a payslip but behave differently. Income tax is cumulative across the year and rises with income (20%, then 40%, then 45%); National Insurance is assessed each pay period separately and falls from 8% to 2% at the top. National Insurance also stops entirely at state pension age, while income tax does not. And the thresholds differ in one more way: National Insurance has a Lower Earnings Limit of £129 a week below the Primary Threshold, where you pay nothing but still build a qualifying year toward the state pension.
To see National Insurance alongside income tax and pension on your own salary, use the take-home pay calculator, and for the tax-free slice see the personal allowance 2026 guide.