How Much Child Benefit Tax Charge Will I Pay? UK

If your adjusted net income exceeds £60,000, HMRC's High Income Child Benefit Tax Charge (HICBC) claws back part — or all — of your child benefit. Use this free 2026/27 calculator to find out exactly how much you owe, whether it is worth keeping your claim, and whether salary sacrifice could bring the charge down.

Tax Year 2026/27

Charge Threshold £60,000

Full Charge At £80,000

Your Details

Adjusted Net Income (£/year)

£0£120,000

Number of Children Receiving Child Benefit

Enter 1–5. Auto-calculates using 2026/27 HMRC rates.

I know my annual child benefit amount

Calculated Annual Child Benefit

£1,354.60 per year

First child: £26.05/week · Each additional child: £17.25/week

Net Child Benefit (after charge)

£0

No charge

You keep all your child benefit — no charge applies at your income level.

Child Benefit

£0

Tax Charge

£0

Charge Rate

Tax Year

2026/27

How the Child Benefit Tax Charge Works

The High Income Child Benefit Tax Charge (HICBC) was introduced in 2013 to claw back child benefit from higher earners. From the 2024/25 tax year, the threshold was raised from £50,000 to £60,000, and the full charge now applies at £80,000 rather than £60,000. This means more families can keep child benefit without any claw-back.

The charge applies to whichever partner in a household has the higher income — not the partner who receives child benefit. If you and your partner both earn above £60,000, it is the higher earner who is liable for the charge, regardless of whose name is on the child benefit claim.

The calculation is straightforward: for every £200 your adjusted net income exceeds £60,000, you repay 1% of your total annual child benefit. The charge reaches 100% when your income hits £80,000, at which point you repay everything you received. The charge can never exceed the total child benefit paid — it cannot result in a net payment to HMRC.

The charge must be paid through Self Assessment. If you are not already registered, you must do so by 5 October following the end of the relevant tax year. You can also arrange to pay through your tax code, which spreads the cost across the following year's payslips.

2026/27 child benefit rates and HICBC thresholds

Income Band	Charge Rate	Effect
Up to £60,000	0%	No charge — keep all child benefit
£60,001–£70,000	1–50%	Partial charge — repay up to half
£70,001–£79,999	50–99%	Significant partial charge
£80,000 and above	100%	Full charge — repay everything

Children	Weekly Rate	Annual Amount
First / only child	£26.05	£1,354.60
Each additional child	£17.25	£897.00
2 children	£43.30	£2,251.60
3 children	£60.55	£3,148.60

What You Need to Know About the HICBC

The most important thing to understand is that the HICBC applies to adjusted net income, not gross salary. This is your total income from all sources — employment income, self-employment profits, rental income, investment income and pension drawdown — minus certain deductions. The most powerful deductions are personal pension contributions made under relief at source, and Gift Aid donations. Employer pension contributions and salary sacrifice arrangements reduce your gross pay before it is counted as income, making them even more effective.

Even if you earn above £80,000, financial advisers often recommend keeping the child benefit claim active and electing to stop payments rather than cancelling the claim entirely. This is because keeping the claim open protects your entitlement to National Insurance credits, which count towards your State Pension if you are not working. It also ensures your child is automatically registered for a National Insurance number when they turn 16.

Self Assessment registration is a common area where people fall foul of HMRC. If you or your partner first exceeded £60,000 in 2024/25 and have been receiving child benefit, you should have registered by 5 October 2025 and filed a return by 31 January 2026. Failing to register on time can result in a penalty even if the tax itself is paid promptly. Check your position through your HMRC Personal Tax Account.

The charge applies to the partner with the higher income, even if they do not personally receive child benefit. If both partners earn above £60,000, it is the higher earner who is liable. Couples sometimes restructure finances — for example, moving savings or rental property into joint names — to reduce one partner's adjusted net income, but HMRC scrutinises such arrangements carefully.

Frequently Asked Questions

Do I have to pay back child benefit if I earn over £60,000?

Yes. Once your adjusted net income exceeds £60,000, HMRC's High Income Child Benefit Tax Charge kicks in. You must declare this via Self Assessment and repay 1% of your child benefit for every £200 your income exceeds the threshold. At £80,000 or more, the charge equals 100% of what you received.

How is the High Income Child Benefit Tax Charge calculated?

The HICBC is 1% of your annual child benefit for every £200 your adjusted net income exceeds £60,000. At £70,000 (£10,000 over), the charge is 50% of your benefit. At £80,000 (£20,000 over), the charge is 100%. The maximum charge can never exceed the benefit received.

What counts as adjusted net income for child benefit purposes?

Adjusted net income includes all sources of income — salary, self-employment profits, rental income, dividends and savings interest. You can deduct personal pension contributions made under relief at source and Gift Aid donations. Salary sacrifice arrangements and employer pension contributions reduce gross income before it is counted, making them particularly effective at lowering your adjusted net income.

Should I stop claiming child benefit if I earn over £80,000?

Not necessarily. You should elect to stop receiving payments rather than cancelling the claim entirely. Keeping the claim active preserves National Insurance credits (important for State Pension entitlement if you are not working) and ensures your child is automatically registered for a National Insurance number at age 16. If your income later falls below £80,000, payments can restart immediately.

How do I pay the child benefit tax charge?

You pay the HICBC through Self Assessment. If you have not filed a return before, register with HMRC by 5 October following the end of the tax year. The charge is due by 31 January. Alternatively, ask HMRC to collect it through your tax code, which spreads the cost across the following year's payslips.

Can salary sacrifice help me avoid the child benefit tax charge?

Yes. Salary sacrifice pension contributions, childcare vouchers and cycle-to-work schemes all reduce your adjusted net income. If salary sacrifice brings your income below £80,000 you pay a partial charge, and below £60,000 no charge applies. Even at £80,000, the pension you accumulate through extra contributions often more than compensates for the child benefit lost.