Child Benefit Tax Calculator (HICBC): Work Out Your 2026/27 Charge

Use the child benefit tax calculator above

Enter your adjusted net income, your partner's income if relevant, and the number of children you receive child benefit for. The tool above estimates your High Income Child Benefit Charge for 2026/27 and shows whether you keep all, some, or none of the benefit once the charge is applied.

What the High Income Child Benefit Charge actually is

The High Income Child Benefit Charge is a tax charge that recovers child benefit from higher-earning households. It does not stop your child benefit being paid into your account. Instead, HMRC collects an income tax charge from whichever partner has the higher income, so the net effect is that a slice of the benefit is taken back.

The charge bites once the higher earner's adjusted net income passes £60,000. Below that figure, you keep every penny of child benefit and owe nothing. Above it, the charge increases gradually until, at £80,000, it equals the full amount of child benefit you received - at which point the benefit and the charge cancel each other out.

One detail trips a lot of people up: the threshold is based on the income of a single person, not the couple's combined income. A household where two people each earn £55,000 - £110,000 between them - pays no charge at all. A household with one earner on £75,000 and a non-working partner pays a substantial charge. It is the highest individual income that matters, which feels unfair to many, but it is how the rules work.

The £60,000 to £80,000 income taper explained

The charge is tapered, not a cliff edge. For every £200 of adjusted net income above £60,000, you repay 1% of the child benefit you were paid in the year. By the time income reaches £80,000 - that is £20,000 above the threshold - you reach 100 lots of £200, so 100% of the benefit is recovered.

In plain words, the formula is:

• Charge = Total child benefit received × (income over £60,000 ÷ £20,000)
• If income is £60,000 or below, the charge is nil.
• If income is £80,000 or above, the charge equals the whole benefit.

HMRC rounds the percentage down to the nearest whole number, so an income of £64,150 gives £4,150 over the threshold, which is 20.75 lots of £200, rounded down to 20% of the benefit. That rounding usually works slightly in your favour, but it is worth knowing if you are checking HMRC's figure against your own.

What counts as adjusted net income

Adjusted net income is not simply your salary. It is your total taxable income from all sources - employment, self-employment, rental profit, savings interest, dividends - minus certain deductions. The two deductions that matter most for the charge are gross pension contributions and Gift Aid donations. Both reduce your adjusted net income pound for pound, which is exactly why pension contributions are such a powerful tool against this charge (more on that below).

Who pays the child benefit charge, and how

The charge falls on the partner with the higher adjusted net income, whether or not that person is the one who actually claims the child benefit. If you and your partner both earn over £60,000, the higher earner pays. If you separate during the year, the rules look at your living arrangements for each part of the year, which can get fiddly.

You declare and pay the charge through Self Assessment. If you do not already file a return, having a HICBC liability is itself a reason HMRC expects you to register. The deadline to register for Self Assessment is 5 October following the end of the tax year, and the charge is paid by 31 January after that - so for the 2026/27 year, the payment deadline is 31 January 2028. Miss the registration or the payment and you face penalties and interest on top.

Since 2025, HMRC has been rolling out an option to pay the charge straight through your PAYE tax code instead of filing a return, for employees who want to avoid Self Assessment. If you go that route, your code is adjusted so the charge is collected across the year. Check your tax code if you opt in - an incorrect code is one of the most common ways people end up over- or underpaying.

How the child benefit tax calculator works out your figure

The calculator follows the same three steps HMRC uses. First, it takes the total child benefit you are due for the year based on the number of children. Second, it works out how far your adjusted net income sits above £60,000. Third, it applies the 1%-per-£200 taper to give the charge.

Because child benefit weekly rates change each tax year and are uprated separately from the tax thresholds, enter the actual amount you receive (or the number of children and let the tool use the current rate). The £60,000 and £80,000 thresholds, and the 1%-per-£200 taper, are fixed for 2026/27 - those are the figures the calculator holds.

Worked example: Priya, a higher earner with two children

Priya is a project manager with an adjusted net income of £68,000 for 2026/27. Her partner works part time and earns £18,000, so Priya is the higher earner and the charge falls on her. The couple claims child benefit for two children.

Step by step:

• Income over the threshold: £68,000 − £60,000 = £8,000.
• That is £8,000 ÷ £200 = 40 lots of £200, so the charge is 40% of the child benefit received.
• If the couple received £2,000 of child benefit across the year for their two children, the charge is 40% × £2,000 = £800.

So Priya keeps £1,200 of the £2,000 in real terms after the £800 charge is collected. She still comes out ahead by claiming - opting out entirely would have cost her the full £2,000.

Second example: a single high earner near the top of the band

Tom earns £78,000 and claims for one child. His income is £18,000 over the threshold, which is 90 lots of £200, so 90% of his child benefit is recovered. He keeps just 10% in net terms. At this end of the band, many people weigh up whether the small remaining benefit is worth the Self Assessment paperwork - though, as below, a pension top-up can change that calculation completely.

2026/27 thresholds at a glance

Figures checked for the 2026/27 tax year against HMRC. See the official guidance at gov.uk: High Income Child Benefit Tax Charge for the current child benefit weekly rates and the full rules.

How to reduce or avoid the child benefit charge

The cleanest way to cut the charge is to bring your adjusted net income down, and the most effective lever is pension contributions. Because gross pension contributions reduce adjusted net income pound for pound, paying more into your pension can pull you back under £80,000, or even back under £60,000, wiping out the charge.

Take Priya at £68,000. If she pays an extra £8,000 (gross) into her pension across the year - through salary sacrifice or a personal contribution that attracts relief - her adjusted net income drops to £60,000 and the charge disappears entirely. She gets the pension money, the higher-rate tax relief on it, and keeps the full child benefit. That is three wins from one decision, which is why this is the single most-recommended move for anyone caught in the band.

Gift Aid donations work the same way, reducing adjusted net income by the gross donation. Salary sacrifice arrangements for childcare vouchers (where still in place) or a company car swap can also shift the figure. If you are close to the £60,000 line, even a modest contribution can be worth far more than its face value once you factor in the recovered benefit plus tax relief. Our income tax calculator and salary calculator help you see how a pension change moves your taxable income.

Should you opt out of child benefit?

If your income is comfortably over £80,000 and you expect it to stay there, the charge wipes out the full benefit, so receiving it then paying it all back can feel pointless. You can choose not to receive the payments while still keeping the claim registered. That last part is important.

Even if you opt out of the money, you should still fill in the child benefit claim form. Doing so protects your State Pension by giving the claiming parent National Insurance credits while they care for a child under 12, and it secures your child's National Insurance number automatically before their 16th birthday. Opting out of the payment is fine; not claiming at all can quietly cost the lower-earning partner pension years. Many couples register the claim in the lower earner's name for exactly this reason.

Common mistakes people make with the HICBC

• Using combined income. The charge is based on the highest individual income, not the household total. Two earners on £55,000 each pay nothing.
• Forgetting it applies UK-wide. The HICBC is a UK income tax charge and works identically in England, Scotland, Wales and Northern Ireland. Scotland's different income tax bands do not change the £60,000 and £80,000 thresholds for this charge.
• Ignoring a mid-year pay rise or bonus. A bonus that tips you over £60,000 creates a charge for the whole year. Check your figure whenever your income jumps.
• Not registering for Self Assessment. If you owe the charge and do not already file, you must register by 5 October after the tax year ends, or risk a failure-to-notify penalty.
• Opting out but not claiming. Failing to register the claim at all can cost the caring parent National Insurance credits towards their State Pension.
• Trusting an unchecked PAYE code. If you pay through your tax code, a wrong code means an over- or underpayment. Review it when it changes.

You can declare the charge yourself through your tax return - our self assessment tax calculator shows how it sits alongside the rest of your bill. Couples close to the threshold should also look at whether the marriage allowance calculator applies, though note marriage allowance is only available where neither partner pays higher-rate tax.

These results are estimates for guidance only and are not personal tax or financial advice. Check your own position with HMRC or a qualified adviser.