Child Benefit High Income Charge Calculator UK 2026
Find out exactly how much High Income Child Benefit Charge (HICBC) you owe for 2025/26 or 2026/27. Enter your adjusted net income, number of children, and any pension or Gift Aid deductions - the calculator does the rest and shows you how to reduce your charge. Used alongside our take-home pay calculator, it gives you a complete picture of your family finances.
Key HICBC Facts for 2026
Who Should Use This Calculator?
Employees Earning £60,000-£80,000
Find out your exact HICBC liability before Self Assessment. See if a pension top-up could wipe out the charge entirely.
Self-Employed Parents
Your adjusted net income after trading expenses may be lower than you think. Use our self-employed tax calculator alongside this tool.
Couples Planning Finances
The HICBC applies to the higher earner only. If your partner earns less than £60,000, you keep all Child Benefit regardless of your combined household income.
HR and Payroll Professionals
Help employees understand their HICBC exposure when setting salaries near the £60,000 threshold. Pair with the payroll calculator for full cost visibility.
Calculate Your HICBC Now
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How the HICBC Calculator Works
Enter Your Income
Input your gross income and any deductions - pension contributions, Gift Aid, or other allowable reliefs that reduce your adjusted net income (ANI).
ANI Is Calculated
Your adjusted net income is calculated by deducting pension contributions (grossed-up) and Gift Aid donations (grossed-up by 25%) from your total income.
Charge Is Applied
If ANI exceeds £60,000, the charge is 1% of your Child Benefit for every £200 over the threshold. At £80,000, the full amount is clawed back.
Insights and Options
See your net Child Benefit after the charge, your effective marginal rate, and exactly how much extra pension you would need to eliminate the HICBC.
Understanding the High Income Child Benefit Charge
The HICBC was introduced in January 2013 to recover Child Benefit from higher-earning households. From April 2024, the threshold increased from £50,000 to £60,000 - a change that removed the charge entirely for around half a million families. The charge is collected through PAYE (from September 2025) or via Self Assessment.
How Adjusted Net Income Works
Adjusted net income (ANI) is not your salary - it is your total taxable income minus certain reliefs. Salary, bonuses, dividends, rental income, and savings interest all count. However, pension contributions and grossed-up Gift Aid donations reduce it. This is why increasing your pension contributions is the most effective way to reduce or eliminate the HICBC.
The Taper Zone: £60,000 to £80,000
Within this band your effective marginal rate can exceed 60%. You pay 40% income tax, 2% NI, plus the HICBC taper. For a parent of two children earning £70,000, the HICBC alone costs around £1,125 a year on top of normal tax. Use the income tax band calculator to see how all charges interact.
Current Child Benefit Rates
| Tax Year | First Child (weekly) | Additional Children (weekly) | First Child (annual) |
|---|---|---|---|
| 2023/24 | £24.00 | £15.90 | £1,248.00 |
| 2024/25 | £25.60 | £16.95 | £1,331.20 |
| 2025/26 (current) | £26.05 | £17.25 | £1,354.60 |
| 2026/27 (provisional) | £27.05 | £17.90 | £1,406.60 |
Should You Opt Out?
If your income is reliably above £80,000, opting out of Child Benefit payments avoids the Self Assessment requirement and the charge. However, you should still register your claim to protect National Insurance credits (if you are not working) and ensure your child automatically receives a National Insurance number at 16. You can restart payments at any time if your income falls below the threshold.
💡 The Pension Trick Explained
If your ANI is £65,000 and you have one child, you owe £338.65 in HICBC. Contributing an extra £5,000 to your pension reduces your ANI to £60,000 - eliminating the entire charge. You also get 40% tax relief on the contribution. That is a combined saving of £338.65 plus £2,000 in tax relief on a £5,000 outlay. See our private pension calculator for the full picture.
Real HICBC Examples (2025/26)
Example 1: One Child, £70,000 Income
Person: Rachel, senior nurse in London
Situation: One child, no pension contributions beyond auto-enrolment
Gross income: £70,000
Adjusted net income: £68,000 (after £2,000 pension)
Child Benefit received: £1,354.60/yr
Charge (40% taper): -£541.84
Net Child Benefit kept: £812.76/yr
Rachel could contribute an extra £8,000 to her pension to bring ANI to £60,000 - saving the full £541.84 HICBC and gaining £3,200 tax relief. Net cost: just £4,800 for a combined saving of £3,741.84.
Example 2: Two Children, £75,000 Income
Person: Marcus, IT project manager
Situation: Two children, £3,000/yr Gift Aid donations to charity
Gross income: £75,000
Gift Aid gross-up (£3,000 x 1.25): -£3,750
Adjusted net income: £71,250
Child Benefit (2 children): £2,251.60/yr
Charge (56.25% taper): -£1,266.53
Net Child Benefit kept: £985.07/yr
Without the Gift Aid deduction, Marcus would pay £1,407.25 in HICBC on an ANI of £75,000. Charitable giving saved him £140.72 in HICBC alone - on top of his Gift Aid tax reclaim. See how your bonus affects your tax band.
Example 3: Three Children, £82,000 Income
Person: Priya, finance director
Situation: Three children, income above full clawback threshold
Gross income: £82,000
Adjusted net income: £82,000
Child Benefit (3 children): £3,148.60/yr
Charge (100% taper): -£3,148.60
Net Child Benefit kept: £0
Priya repays the full amount. She has opted to keep her claim active to protect NI credits during a potential career break. Contributing £22,000 to her pension would bring ANI below £60,000, saving her £3,148.60 in HICBC plus £8,800 in income tax relief - check the personal allowance taper calculator too.
Frequently Asked Questions
The threshold is £60,000 adjusted net income for both 2025/26 and 2026/27 - unchanged since April 2024. Child Benefit is fully withdrawn at £80,000. The taper rate is 1% for every £200 above £60,000, giving a 100-step clawback over the £20,000 taper zone.
Yes. Pension contributions reduce your adjusted net income (ANI), which is the figure used to calculate the charge. If increasing your contributions brings your ANI below £60,000, you owe no HICBC at all. You also receive 40% income tax relief on contributions if you are a higher-rate taxpayer. Use our pension contribution calculator to model the impact.
The HICBC is always charged on the partner with the higher adjusted net income - regardless of who actually claims Child Benefit. So if your partner earns £70,000 and you earn £30,000, your partner must pay the HICBC through Self Assessment or PAYE, even though you are the claimant.
Child Benefit is a universal payment for anyone responsible for a qualifying child - it is not means-tested until the HICBC applies. Child Tax Credit is being replaced by Universal Credit. If you are unsure how these interact with your income, try our Universal Credit calculator to see the full picture.
From September 2025, HMRC's new PAYE option lets you pay the HICBC through your monthly pay without filing a Self Assessment return. Alternatively, you can register for Self Assessment (by 5 October after the tax year ends) and pay by 31 January. If you are self-employed, you already complete a Self Assessment return so the charge is included automatically.
Adjusted net income includes your salary, self-employment profit, bonuses, dividends, savings interest (above the personal savings allowance), and rental income after expenses. It is calculated before the personal allowance but after pension contributions and Gift Aid donations are deducted. If you have a complex income picture, check the tax code checker to confirm HMRC holds the right details.
Yes - always register the claim even if you opt out of payments. Claiming protects your National Insurance record if you are not in paid work (crucial for State Pension), and ensures your child is registered for a National Insurance number at 16. You can opt out of payments to avoid the HICBC and any Self Assessment obligation, but restart them at any time if your income drops.
The previous government announced plans to move HICBC to a household income basis by April 2026, which would have fixed the unfair situation where two parents each earning £59,000 pay nothing while a single earner on £62,000 is charged. The current government has not confirmed this change will proceed. This calculator uses the current individual income rules, which remain in force for 2025/26 and 2026/27 as confirmed by HMRC.
Data Sources and Accuracy
This calculator uses official UK government figures. All rates are verified against HMRC and GOV.UK publications:
- HICBC Thresholds and Taper Rate: GOV.UK - High Income Child Benefit Charge
- Child Benefit Weekly Rates (2025/26 and 2026/27): HMRC Rates and Allowances
- Adjusted Net Income Calculation Method: GOV.UK - Adjusted Net Income Guidance
- Gift Aid Grossing-Up: GOV.UK - Gift Aid
Calculation Method: ANI = Gross Income - Pension Deduction (grossed-up by type) - Gift Aid Donations x 1.25 - Other Deductions. HICBC = (floor((ANI - 60000) / 200)) x 1% x Annual Child Benefit, capped at 100%.
Last Updated: February 2026
Disclaimer: This calculator provides estimates for informational purposes only. Results are based on the information you enter and standard HMRC rules. Individual circumstances vary - if you have complex income sources, capital gains, or multiple income streams, consult a qualified tax adviser or check the official HMRC Child Benefit tax calculator.
FastJobs.uk is not a regulated financial adviser. Nothing on this page constitutes financial or tax advice.
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