Na<sub>2</sub>IrO<sub>3</sub> (NIO) is known to be a
spin–orbit
(SO) driven <i>j</i> = 1/2 pseudo-spin Mott–Hubbard
(M–H) insulator. The mixing of <i>j</i> = 1/2 pseudo-spin
derived from t<sub>2g</sub> orbitals with the e<sub>g</sub> orbitals
has not been probed yet from the viewpoint of local structural distortions.
Using a combination of theoretical calculations and X-ray spectroscopy,
we show that the energetics in the vicinity of Fermi level (<i>E</i><sub>F</sub>) is governed by SO interactions, electron
correlation, and local octahedral distortions. The <i>j</i> = 3/2 and 1/2 pseudo-spin states have an admixture of both t<sub>2g</sub> and e<sub>g</sub> characters due to a local structural distortion.
Reduction of the local octahedral symmetry also enables Ir 5d–O
2p hybridization around the <i>E</i><sub>F</sub> resulting
in an M–H insulator with enhanced charge-transfer character.
The possibility of the Slater insulator phase is also ruled out by
a combination of the absence of room-temperature density of states
in valence band spectra, calculated moments, and temperature-dependent
magnetization measurements.