Calculate the High Income Child Benefit Charge (HICBC) for 2026-27 and see whether to keep or opt out of Child Benefit.
This calculator estimates the High Income Child Benefit Charge based on 2026-27 rates. Actual liability depends on your adjusted net income. Consult HMRC or a tax adviser for precise figures.
The High Income Child Benefit Charge (HICBC) is a tax charge that claws back some or all of your Child Benefit if you or your partner has an adjusted net income above GBP 60,000 per year. Introduced in 2013 (originally at GBP 50,000), the threshold was raised to GBP 60,000 from 6 April 2024, and the taper range extended to GBP 80,000. For the 2026-27 tax year, Child Benefit is paid at GBP 26.05 per week for the eldest or only child and GBP 17.25 per week for each additional child. If the higher-earning parent in the household has income above GBP 60,000, a tax charge applies at a rate of 1% of the benefit for every GBP 200 of income above GBP 60,000. At GBP 80,000, the charge equals 100% of the benefit. This calculator shows your Child Benefit entitlement, the tax charge at your income level, and the net benefit you keep after the charge. It also includes a chart showing how the net benefit changes across the income range, helping you decide whether to keep claiming or opt out.
To calculate your Child Benefit tax charge: 1. Enter your adjusted net income. This is the income of the higher earner in the household. Adjusted net income is your total taxable income minus pension contributions, Gift Aid donations, and certain other deductions. If both parents earn under GBP 60,000, there is no charge regardless of combined household income. 2. Enter the number of children you receive Child Benefit for. The first child receives a higher rate than additional children. 3. Review your results showing your total Child Benefit, the HICBC charge, your net benefit after the charge, and a recommendation on whether to keep or opt out. 4. Use the chart to see how the net benefit changes at different income levels. This is particularly useful if your income fluctuates or if you are considering pension contributions to reduce your adjusted net income below the threshold.
The Child Benefit tax charge is calculated in stages: Step 1: Calculate total Child Benefit. First child: GBP 26.05/week. Each additional child: GBP 17.25/week. Annual benefit: weekly total x 52. Step 2: Determine the charge percentage. For income up to GBP 60,000: 0% charge. For income between GBP 60,000 and GBP 80,000: 1% charge for every GBP 200 over GBP 60,000. For income of GBP 80,000 or above: 100% charge. The formula is: Charge % = floor((income - 60,000) / 200), capped at 100. Step 3: Calculate the tax charge. Tax Charge = Annual Child Benefit x Charge Percentage / 100. Step 4: Calculate net benefit. Net Benefit = Annual Child Benefit - Tax Charge. For example, at GBP 70,000 income: excess = GBP 10,000; steps = 10,000 / 200 = 50; charge = 50% of total benefit. The charge is based on individual income, not household income. If both parents earn GBP 59,000, there is no charge even though household income is GBP 118,000.
Inputs: Adjusted net income: GBP 50,000, Children: 2
Inputs: Adjusted net income: GBP 70,000, Children: 2
Inputs: Adjusted net income: GBP 85,000, Children: 1
One of the most important aspects of the HICBC is that even if the charge equals 100% of the benefit, there can be good reasons to keep claiming. The parent who claims Child Benefit receives National Insurance credits for periods when they are not working or earning below the lower earnings limit. These credits count towards qualifying years for the State Pension. If you opt out entirely, the non-working parent could miss out on State Pension entitlement. A middle-ground option is to claim Child Benefit but elect not to receive the payments. This preserves the NI credits without creating a tax liability. You do this by ticking a box on the Child Benefit claim form. You can also reduce your adjusted net income below the GBP 60,000 threshold by making pension contributions. For example, if your salary is GBP 65,000 and you contribute GBP 5,000 to a pension (net of tax relief), your adjusted net income falls to GBP 60,000, eliminating the charge entirely. This effectively gives you "free" Child Benefit while boosting your retirement savings. The HICBC must be reported and paid through a Self Assessment tax return. If you are employed and usually taxed through PAYE, you will need to register for Self Assessment specifically because of the HICBC. Failing to report it can result in penalties from HMRC. Use our income tax calculator to see how the HICBC interacts with your overall tax position.