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Child Benefit Tax Charge Calculator 2026/27

Updated May 2026HMRC 2026/27 ratesFree · No signup
Your details
£
Gross income minus pension contributions and Gift Aid.
£
Contributions reduce your adjusted net income.
About this calculator — how it works

The High Income Child Benefit Charge (HICBC) claws back Child Benefit when the highest earner in a household has an adjusted net income above £60,000. The taper: at exactly £60,000 you repay nothing; at £80,000 you repay 100%. For 2026/27, Child Benefit is £26.05/week for the eldest child and £17.25/week for each additional child.

Even if you expect to repay it, it's usually worth claiming — the National Insurance credits that come with registration count towards your State Pension regardless of whether you receive payments.

Frequently asked questions
Should I opt out to avoid the charge?
Register but opt out of payments. NI credits accrue as long as you're registered even without receiving payments. If your income later falls below £60,000, you can reinstate.
Who pays the HICBC in a couple?
The partner with the higher adjusted net income pays the charge — regardless of who claims the child benefit.
Can pension contributions eliminate the charge?
Yes — pension contributions reduce your adjusted net income. Contributing enough to bring it below £60,000 eliminates the HICBC entirely.
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Child Benefit Tax Calculator: The High Income Charge Explained

Child Benefit provides valuable financial support to families — £25.60 per week for the first child and £16.95 for each additional child. However, if either parent earns over £60,000, the High Income Child Benefit Charge (HICBC) claws back some or all of the benefit. This calculator shows exactly how much you keep or need to repay.

How the HICBC works

The charge applies to the partner with the higher income (not necessarily the person who receives the Child Benefit). For every £100 you earn above £60,000, you repay 1% of the Child Benefit received. At £80,000 or above, the charge equals 100% of the benefit — meaning you effectively receive nothing.

Importantly, the charge is based on your adjusted net income, not your gross salary. You can reduce your adjusted income through pension contributions, Gift Aid donations, and certain trading losses. A parent earning £70,000 who contributes £10,000 to their pension would see their adjusted income drop to £60,000 — eliminating the HICBC entirely while also benefiting from pension tax relief.

Should you opt out or keep claiming?

Even if the charge equals 100% of your benefit, it is usually worth continuing to claim. This is because claiming preserves your National Insurance credits, which count towards your State Pension. A parent who stops claiming and does not work enough to earn NI credits could lose out on thousands of pounds in State Pension payments later in life.

HICBC Rules for 2026/27: What Changed

From April 2024, the government raised the HICBC thresholds to reduce the number of families caught by the charge:

Income LevelCharge RateAction Needed
Under £60,0000%Keep claiming — no charge
£60,000 – £80,0001% per £200 over £60kClaim but file Self Assessment
Over £80,000100%Consider opting out (but protect NI credits)

Before April 2024: The charge started at £50,000 and reached 100% at £60,000. The new thresholds mean a family with one child where the higher earner makes £65,000 now pays 25% of their child benefit back instead of 50%.

How to Reduce Your HICBC

Your adjusted net income determines the charge — not your gross salary. You can legally reduce it through:

  1. Pension contributions: Every £1 into a personal pension or SIPP reduces your adjusted net income by £1. A £5,000 pension contribution could drop a £68,000 earner below the £60k threshold entirely.
  2. Gift Aid donations: HMRC grosses these up by 25%, so a £400 donation reduces your adjusted net income by £500.
  3. Salary sacrifice: Childcare vouchers (if already enrolled), cycle-to-work schemes, and electric car schemes reduce your taxable income.
  4. Trading losses: If you have a side business making a loss, it can be offset against other income.

Frequently Asked Questions

Should I opt out of child benefit if I earn over £80,000?

Opting out means you won't receive payments, so you won't have a charge. However, the person claiming child benefit gets National Insurance credits that count toward their State Pension. If you're not working or not paying enough NI, these credits are valuable. Fill in the form to opt out of payments but still protect your credits.

What if both parents earn £55,000?

No charge applies. The HICBC is based on the higher earner's income. If both earn £55,000, neither exceeds the £60,000 threshold, so you keep 100% of child benefit with no tax charge. This is a common source of confusion — it's based on individual income, not household income.

Do I need to register for Self Assessment for HICBC?

If your adjusted net income is between £60,000 and £80,000 and you receive child benefit, you must register for Self Assessment and pay the charge by 31 January following the tax year. You can opt out of child benefit payments instead to avoid Self Assessment, but you should still protect your NI credits. If your income drops below £60,000, you can restart your claim.

Sources & Methodology

All calculations are verified against official HMRC thresholds and rates for the 2026/27 tax year. Figures are updated within 24 hours of any HMRC announcement. Calculations are for guidance only — consult a qualified accountant for personalised advice.