Abstract: Toroidal transformers and other toroidal magnetic components need insulation between separate windings. International safety standards specify minimum requirements for both total insulation thickness and number of layers of insulation. The safety requirements can be met by a toroidal transformer insulation method and toroidal transformer having, in combination, a wide sheet of insulation material covering the outside perimeter and the top and bottom radial surfaces of a winding but not entering into the center hole, and wrapping with a narrow strip of insulation material for covering the entire winding and the wide sheet of insulation material. Because the wide sheet adds insulation on the outside perimeter of the winding, which is larger then the inside perimeter of the center hole, the outer wrapping with the narrow strip need only provide the insulation actually required on the inside perimeter of the center hole.