Rates & sources2025/26
Class 1 employee NICs on earnings above the Primary Threshold (2025/26 HMRC rates).
Source: HMRC — National Insurance rates and categories — figures refreshed at the start of each tax year.
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When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
Worked example: £45,000 salary
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Gross salary
£45,000
Below threshold (£12,570)
£0 NI
£12,570 → £45,000 × 8%
£2,594
Above £50,270
£0
Total employee NI
£2,594
Effective NI rate
5.77%
Salary-sacrificing 5% (£2,250) into pension cuts NI to £2,414.40 — a £180/year saving on top of income-tax relief.
How to read your results
Annual NI
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Monthly NI
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Effective Rate
The effective rate lets you compare options on a true like-for-like basis rather than being misled by different compounding periods or fee structures. Use it to cut through headline marketing rates when shortlisting providers or products.
Method & assumptionsAuthoritative sources
This calculator computes National Insurance contributions for employees (Class 1) and the self-employed (Class 2 and Class 4) using the thresholds and rates published by HMRC for the current tax year. Employee contributions are calculated between the primary threshold and upper earnings limit at the main rate, and above the upper earnings limit at the reduced rate.
The calculator assumes a single employment or self-employment source of income. It does not account for contracted-out pension schemes, contributions credits from benefits, or aggregated earnings across multiple employerships. Director-mode NI calculations, which use an annual rather than weekly threshold, are also excluded. Class 3 voluntary contributions are not modelled. Employer NI is shown for reference only and does not affect employee take-home pay. Confirm your specific position with HMRC or a payroll professional if you have multiple income sources.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Go deeper — 3 guides reference this calculator
- 9m
UK Tax Year 2025/26: Complete Guide to Allowances, Bands & Thresholds
Full reference for the 2025/26 UK tax year — income tax bands, Personal Allowance, National Insurance, ISA allowance, pension limits, stamp duty changes.
- 10m
UK Self-Employed Tax Guide: Self Assessment, Payments on Account, Allowable Expenses
How self-employed tax works in the UK — registering with HMRC, the Self Assessment deadline, payments on account, what you can claim, and Class 2/4 NI.
- 8m
UK Salary Sacrifice Guide: Pension, EV & Cycle-to-Work Savings
How UK salary sacrifice works — NI and tax savings on pension contributions, EV lease schemes, cycle-to-work, and the pitfalls around mortgage applications and statutory pay.
Frequently asked
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