High Income Child Benefit Charge Calculator UK

Q: What is the High Income Child Benefit Charge?

It is a tax charge that claws back Child Benefit once the higher earner's adjusted net income passes £60,000. You still receive the full benefit, but repay some or all of it through tax. The charge is 1% of the benefit for every £200 of income above £60,000, reaching 100%, full repayment, at £80,000. It is based on one person's income, not the household total, and is reported through Self Assessment or, since October 2025, through your PAYE tax code.

Q: At what income does the Child Benefit Charge start?

It starts when the higher earner's adjusted net income exceeds £60,000, and the benefit is fully clawed back by £80,000. Below £60,000 there is no charge. The test is adjusted net income, your taxable income after reliefs like pension contributions and Gift Aid, not your gross salary. The threshold rose from £50,000 in April 2024, and the taper now spreads over £20,000 rather than £10,000, so the clawback is gentler than before.

Q: Is the charge based on household or individual income?

Individual income, specifically the higher earner's. The household total is irrelevant. This is why a couple each earning £55,000, £110,000 between them, pay nothing, while a single earner on £65,000 supporting a non-working partner does. The government consulted on moving to a household basis but decided not to proceed, so the individual-income test remains. It feels unfair to single-earner households, but it shapes how couples can plan around the charge.

Q: How much Child Benefit will I lose?

It depends where in the £60,000 to £80,000 band your income sits. At £65,000 you lose 25%, at £70,000 half, at £75,000 three-quarters, and at £80,000 the lot. For one child, about £1,355 a year, £70,000 means a £677 charge and £677 kept. Until £80,000 you always keep something, so it is usually still worth claiming. The taper is smooth, 1% of the benefit per £200 of income, so there is no sudden cliff, just a steady reduction.

Q: Can pension contributions reduce the charge?

Yes, this is the most effective lever. The charge is based on adjusted net income, which pension contributions reduce. Paying enough into a pension to bring your income to £60,000 removes the charge entirely. It is doubly efficient: you keep the full Child Benefit and also save Income Tax and National Insurance on the contribution. For incomes a little over £60,000, a modest pension top-up is often the single best move.

Q: How do I pay the charge?

Through Self Assessment, which means registering for a tax return if you do not already file one. Since October 2025, you can also choose to pay through your PAYE tax code by notifying HMRC online, if your income is taxed under PAYE. Watch the registration deadline: the charge can apply even when Child Benefit is paid to your partner, and missing it brings penalties. If your income has crept over £60,000, check whether you need to register.

Q: What counts as adjusted net income?

Your total taxable income minus certain reliefs, most importantly pension contributions and Gift Aid donations. It includes salary, bonuses, taxable benefits, rental and savings income, and dividends, then subtracts those reliefs. So a £63,000 salary with £4,000 of pension contributions gives an adjusted net income of around £59,000, below the threshold. Because this is the figure the charge tests, it is worth calculating properly before assuming you are caught.

Work out how much Child Benefit you keep above £60,000 — and the quirk that catches families out: the charge is on one person’s income, not the household’s.

Starts at £60,000 Gone by £80,000 Free, no signup

The High Income Child Benefit Charge (HICBC) claws back Child Benefit once the higher earner’s adjusted net income passes £60,000, at a rate of 1% of the benefit for every £200 above the threshold — so it’s fully repaid by £80,000. The quirk that catches families out is that it’s based on one person’s income, not the household’s: a couple each earning £59,000 (£118,000 between them) pay nothing, while a single earner on £70,000 with a stay-at-home partner loses half. It feels unfair, but it’s the rule — and household-based reform was dropped, so individual income is here to stay. The crucial lever is that the charge uses adjusted net income, which pension contributions reduce — so paying more into a pension can cut or even eliminate the charge entirely. And even if you’d repay it all above £80,000, it’s usually still worth claiming Child Benefit for the National Insurance credits toward a stay-at-home parent’s State Pension. This calculator shows what you keep and how to plan around it. To lower your income, see the Salary Sacrifice Calculator; for your wider tax, the Salary Take-Home Calculator.

Common examples:

Income and Child Benefit

Highest earner total taxable income

Use the higher adjusted net income between you and your partner.

Partner income

Eldest / only child

Other children claimed

children

Adjusted net income deductions

Gross pension contributions

Include gross relief-at-source pension contributions where relevant.

Gross Gift Aid donations

Other adjusted income deductions

Months Child Benefit received

months

Rates and thresholds

Eldest child weekly rate

Other child weekly rate

Charge starts at

Full charge at

Claim status and payment

Child Benefit claim status

Claiming can protect National Insurance credits for a non-working parent.

How to pay charge

HICBC result

Estimated annual tax charge

Calculating…

Child Benefit received

—

Charge percentage

—

Benefit kept after charge

—

Monthly impact

—

Adjusted net income

—

Income reduction needed

—

High Income Child Benefit Charge breakdown

Calculating…

Simplified estimate only. Adjusted net income, pension relief, Gift Aid, taxable benefits, savings/dividends and payment method can affect the real charge.

✦ Explain with AI →

Child Benefit Charge — quick lookup

The left table shows how much of your Child Benefit you keep as the higher earner’s income rises through the £60,000–£80,000 taper, for one and two children. The right lists the thresholds and benefit rates. The headline is the smooth taper: between £60,000 and £80,000 you lose 1% of the benefit for every £200, so there’s no cliff edge — just a gradual clawback.

Child Benefit you keep

Income	1 child	2 children
£60,000	£1,355	£2,252
£65,000	£1,016	£1,689
£70,000	£677	£1,126
£75,000	£339	£563
£80,000	£0	£0

Thresholds & rates

Item	Figure
Charge starts	£60,000
Fully repaid	£80,000
Taper	1% per £200
Benefit, 1st child	£26.05/wk
Each extra child	£17.25/wk

“You keep” is the Child Benefit received minus the HICBC. The charge is 1% of the total benefit for every full £200 of adjusted net income above £60,000, so at £70,000 (£10,000 over) it’s 50% and at £80,000 it’s 100%. Child Benefit for 2026/27 is £26.05 a week for the first child and £17.25 for each additional child — about £1,355 a year for one child and £2,252 for two. The charge is based on the higher earner’s individual income, not the household total.

How the Child Benefit Charge works

The HICBC isn’t a cut to Child Benefit itself — you still receive the full payment. It’s a separate tax charge that claws some or all of it back through the higher earner’s tax. Understanding three things — the threshold, the taper, and whose income counts — is all it takes.

The £60,000 to £80,000 taper

If the higher earner’s adjusted net income is below £60,000, there’s no charge and you keep all your Child Benefit. Above £60,000, the charge is 1% of the total benefit for every £200 of income over the threshold. By the time income reaches £80,000, the charge equals 100% of the benefit — you receive it, then repay it all. The 2024 reforms raised the threshold from £50,000 and spread the taper over £20,000 instead of £10,000, so the clawback is now gentler than it used to be.

The chargeIf adjusted net income ≤ £60,000 → no charge Charge = Child Benefit × (income − £60,000) ÷ £20,000 = 1% of the benefit per £200 over £60,000 Example: £70,000 income, 1 child (£1,355 benefit) (£70,000 − £60,000) ÷ £200 = 50% Charge = 50% of £1,355 = £677

The quirk: it’s individual income, not household

This is the part that feels unfair, and catches families out. The charge looks only at the higher earner’s individual income, never the household total. So a couple each earning £55,000 — £110,000 between them — pay nothing, while a single earner on £65,000 supporting a non-working partner does. The government consulted on moving to a household basis but decided not to, so individual income remains the test. It’s worth knowing precisely because it shapes how couples can plan around it.

Adjusted net income is the number that matters

The threshold isn’t your salary — it’s your adjusted net income, which is your total taxable income minus certain reliefs, chiefly pension contributions and Gift Aid donations. This is the key to the whole charge: because pension contributions reduce adjusted net income, paying more into a pension can bring you back under £60,000 and cut or remove the charge entirely. The figure HMRC tests is after those deductions, not your headline pay.

Worked examples

Four scenarios: the partial taper, the individual-income quirk, the pension rescue, and the high earner who should still claim.

Scenario 1 · One earner at £70,000, one child

Half the benefit clawed back

Adjusted net income £70,000 · £10,000 over threshold
£10,000 ÷ £200 = 50% · benefit £1,355
Charge: £677 · you keep £677

A higher earner on £70,000 with one child is exactly halfway through the taper, so the charge claws back 50% of the £1,355 benefit — £677 — leaving £677 kept. It’s still worth claiming: keeping over £600 a year for nothing more than a tax return entry is a clear win. Only at £80,000 does the charge wipe out the benefit entirely. The taper means there’s no sudden cliff, just a steady reduction.

Scenario 2 · The individual-income quirk

£118k household pays nothing

Couple A: £59,000 each (£118,000 total) → charge £0
Couple B: £70,000 + £0 (£70,000 total) → charge £1,126 (2 kids)
Same children, very different outcomes

This is the rule that surprises everyone. Couple A earns nearly twice as much overall, yet pays no charge because neither individual tops £60,000. Couple B, on far less between them, loses half their benefit because one income crosses the threshold. It feels backwards, but it’s how the individual-income test works — and it’s why how a couple’s income is split matters as much as how much they earn.

Scenario 3 · The pension rescue

Sacrificing back under £60,000

Salary £66,000 · charge on 1 child ≈ £406
Sacrifice £6,000 into pension → adjusted net income £60,000
New charge: £0 — benefit fully kept, plus pension saving

Because the charge is based on adjusted net income, a pension contribution can remove it. Here, sacrificing £6,000 brings income to exactly £60,000, eliminating the £406 charge and saving Income Tax and National Insurance on the £6,000 — money that goes into the pension rather than to HMRC. For incomes a little over £60,000, a modest pension top-up is often the single most effective move, killing two taxes at once. The Salary Sacrifice Calculator shows the combined effect.

Scenario 4 · Earning over £80,000

Why you should still claim

Income £85,000 · charge = 100% of benefit (you repay it all)
Net cash benefit: £0
But: claim still earns National Insurance credits

At £80,000 or above the charge equals the full benefit, so claiming and repaying is cash-neutral. It’s tempting to opt out entirely — but there’s a hidden value. Claiming Child Benefit for a child under 12 gives the claiming parent National Insurance credits toward their State Pension, even if they’re not working. The fix is to claim the benefit but opt out of receiving the payments: you get the NI credits without the charge to repay. Skipping the claim altogether can quietly cost a stay-at-home parent State Pension years.

How to plan around the charge — four levers

Most guides just quote the £60,000 figure. But how much you actually lose — and how much you can avoid — depends on four things, and a couple of them can remove the charge completely. Work through these:

1

What’s your adjusted net income — not your salary?

The charge tests adjusted net income, after pension contributions and Gift Aid. Your salary might be £64,000 but your adjusted net income £58,000 once pensions are counted. Work out the real figure before assuming you’re caught — many people aren’t, once pensions are deducted.
It’s income after pensions, not gross pay
2

Could a pension contribution remove the charge?

This is the big lever. Paying enough into a pension to bring adjusted net income to £60,000 removes the charge entirely, while also saving Income Tax and NI. For incomes just over the threshold, it’s often the most efficient move you can make — keeping the benefit and boosting the pension at once.
Pension to £60k → charge gone
3

How is income split between you and a partner?

Because the test is individual, two incomes under £60,000 beat one over it. Where a couple has flexibility — dividends from a joint company, or how a pay rise is structured — keeping each person under the threshold can preserve the full benefit a single-earner household would lose.
Two under £60k → no charge
4

Are you protecting State Pension credits?

Even when you’d repay the whole benefit above £80,000, claim it and opt out of the payments. Claiming for a child under 12 earns the claiming parent National Insurance credits toward their State Pension — valuable for a parent not otherwise paying NI. Never simply skip the claim.
Claim for NI credits, opt out of payment

Two children — same family, different choices

Annual Child Benefit kept (£2,252 full):

Income split £59k + £59k£2,252 (all)

One earner £70k, pension to £60k£2,252 (all)

One earner £70k, no planning£1,126 (half)

Best vs worst£1,126/year

The same family with two children keeps anywhere from the full £2,252 to half of it, depending only on how income is split and whether pensions are used. That’s why “how much will the charge cost me?” depends on planning, not just income. For most families just over £60,000, a pension contribution is the cleanest fix — it removes the charge and cuts tax at the same time. For couples with flexible income, keeping each person under the threshold preserves the lot. And for everyone above £80,000, claiming for the National Insurance credits while opting out of payments protects a future State Pension at no cost. The calculator shows exactly where you stand and what each move is worth.

How to pay it — and the deadline trap

If you’re liable, you normally report the charge through Self Assessment, which means registering for a tax return if you don’t already file one. Since October 2025 it’s also possible to pay through your PAYE tax code by notifying HMRC online, if your income is taxed under PAYE. The deadline trap catches people: the charge can apply even though Child Benefit is paid to your partner, and missing the Self Assessment registration can bring penalties. If your income has crept over £60,000, check whether you need to register before the year-end deadline.

Two scenarios that change the picture

What if…

You paid into a pension to dodge the charge?

Salary £66,000, 1 child charge £406

Pension £6,000 → income £60,000 charge £0

Plus Income Tax + NI saved on £6,000

A £6,000 pension contribution removes the £406 charge and saves 40% Income Tax plus NI on the £6,000 — money that lands in your pension instead of going to HMRC. For incomes just over £60,000, this double benefit makes a pension top-up unusually efficient.

What if…

You opted out of Child Benefit entirely?

Cash benefit above £80k £0 net

If you skip the claim no NI credits

If you claim & opt out of payment NI credits kept

Skipping the claim altogether to avoid the hassle can cost a stay-at-home parent State Pension years. The right move above £80,000 is to claim Child Benefit but opt out of receiving the payments — you keep the National Insurance credits for a child under 12 with no charge to repay.

Key Child Benefit Charge terms explained

The HICBC sits where Child Benefit, income tax, and pensions meet, so the vocabulary spans all three. The ten terms below cover what you’ll meet working out where you stand.

HICBC: The High Income Child Benefit Charge — a tax charge that claws back Child Benefit once the higher earner’s adjusted net income passes £60,000, reaching 100% by £80,000.
Adjusted net income: Your total taxable income minus reliefs like pension contributions and Gift Aid. This, not your salary, is the figure tested against the £60,000 threshold — which is why pensions can remove the charge.
The £60,000 threshold: The income level at which the charge begins. Below it you keep all your Child Benefit. Raised from £50,000 in April 2024, so fewer families are caught than before.
The £80,000 ceiling: The income at which the charge equals the full benefit, so you repay all of it. Between £60,000 and here the taper applies; above it the benefit’s net cash value is zero.
The taper: The clawback rate: 1% of the benefit for every £200 of income over £60,000. Spread over £20,000 since 2024 (it was £100 per 1% before), making the reduction gentler.
Individual vs household income: The charge tests one person’s income, not the household total. Two earners under £60,000 pay nothing however high their combined income; one earner over £60,000 pays even on a lower household total.
Child Benefit: The payment itself: £26.05 a week for the first child, £17.25 for each additional child in 2026/27. You receive it in full; the HICBC claws some or all back through tax.
National Insurance credits: Credits toward the State Pension earned by claiming Child Benefit for a child under 12, even if not working. The reason to claim and opt out of payment, rather than skip claiming, above £80,000.
Opt out of payments: Choosing to claim Child Benefit but not receive the money, so there’s no charge to repay but you keep the National Insurance credits. The recommended route for those who’d repay it all.
Self Assessment: The route for reporting and paying the charge, requiring a tax return if you don’t already file one. Since October 2025 it can also be collected through your PAYE tax code.

Five mistakes families make with the charge

The HICBC catches people because it’s counter-intuitive and the admin is easy to miss. These five errors, drawn from the recurring r/UKPersonalFinance and r/UKParenting threads, are the costly ones.

Opting out instead of claiming and opting out of payment

Above £80,000, many simply don’t claim to avoid the hassle — and lose the National Insurance credits a stay-at-home parent needs for their State Pension. The fix is to claim Child Benefit but opt out of receiving the payments: no charge to repay, credits preserved.

Cost: lost State Pension years Fix: claim, then opt out of payments

Using salary instead of adjusted net income

People assume their gross salary is the test, when it’s adjusted net income, after pension contributions and Gift Aid. A £63,000 salary with £4,000 of pension may be £59,000 adjusted net income — under the threshold. Work out the real figure before assuming you’re caught.

Cost: paying a charge you don’t owe Fix: calculate adjusted net income

Not registering for Self Assessment in time

The charge often means filing a tax return for the first time, and missing the registration deadline brings penalties — even though Child Benefit may be paid to your partner, not you. If your income has crept over £60,000, check whether you need to register before the year-end deadline.

Cost: failure-to-notify penalties Fix: register or use the PAYE option

Missing the pension fix just over £60,000

Families a little over the threshold often pay the charge without realising a pension contribution would remove it — and save Income Tax and NI too. Bringing adjusted net income to £60,000 keeps the full benefit and boosts the pension. It’s often the single most efficient move.

Cost: a charge a pension would erase Fix: top up the pension to £60k

Assuming it’s based on household income

Plenty of families think combined income decides the charge and are caught out either way — shocked to pay on a modest household total, or wrongly assuming a high one is safe. It’s strictly individual income, and household reform was dropped, so plan around the single highest earner.

Cost: surprise charge or missed planning Fix: plan around individual income

Frequently asked questions

What is the High Income Child Benefit Charge?

It’s a tax charge that claws back Child Benefit once the higher earner’s adjusted net income passes £60,000. You still receive the full benefit, but repay some or all of it through tax.

The charge is 1% of the benefit for every £200 of income above £60,000, reaching 100% — full repayment — at £80,000. It’s based on one person’s income, not the household total, and is reported through Self Assessment or, since October 2025, through your PAYE tax code.

At what income does the Child Benefit Charge start?

It starts when the higher earner’s adjusted net income exceeds £60,000, and the benefit is fully clawed back by £80,000. Below £60,000 there’s no charge at all.

Importantly, the test is adjusted net income — your taxable income after reliefs like pension contributions and Gift Aid — not your gross salary. The threshold rose from £50,000 in April 2024, and the taper now spreads over £20,000 rather than £10,000, so the clawback is gentler than before.

Is the charge based on household or individual income?

Individual income — specifically the higher earner’s. The household total is irrelevant. This is why a couple each earning £55,000 (£110,000 between them) pay nothing, while a single earner on £65,000 supporting a non-working partner does.

The government consulted on moving to a household basis but decided not to proceed, so the individual-income test remains. It feels unfair to single-earner households, but it’s the rule, and it shapes how couples can plan around the charge.

How much Child Benefit will I lose?

It depends where in the £60,000–£80,000 band your income sits. At £65,000 you lose 25%, at £70,000 half, at £75,000 three-quarters, and at £80,000 the lot. For one child (£1,355 a year), £70,000 means a £677 charge and £677 kept.

Until £80,000 you always keep something, so it’s usually still worth claiming. The taper is smooth — 1% of the benefit per £200 of income — so there’s no sudden cliff, just a steady reduction as income rises.

Can pension contributions reduce the charge?

Yes — this is the most effective lever. The charge is based on adjusted net income, which pension contributions reduce. Paying enough into a pension to bring your income to £60,000 removes the charge entirely.

It’s doubly efficient: you keep the full Child Benefit and also save Income Tax and National Insurance on the contribution. For incomes a little over £60,000, a modest pension top-up is often the single best move. The Salary Sacrifice Calculator shows the combined saving.

Should I still claim Child Benefit if I earn over £80,000?

Yes, but opt out of the payments. Above £80,000 the charge equals the full benefit, so receiving and repaying it is cash-neutral. But claiming Child Benefit for a child under 12 earns the claiming parent National Insurance credits toward their State Pension.

The right move is to claim the benefit but choose not to receive the payments — you keep the NI credits with no charge to repay. Skipping the claim entirely can quietly cost a stay-at-home parent valuable State Pension years.

How do I pay the charge?

Through Self Assessment, which means registering for a tax return if you don’t already file one. Since October 2025, you can also choose to pay through your PAYE tax code by notifying HMRC online, if your income is taxed under PAYE.

Watch the registration deadline: the charge can apply even when Child Benefit is paid to your partner, and missing it brings penalties. If your income has crept over £60,000, check whether you need to register. See gov.uk for the process.

What counts as adjusted net income?

Your total taxable income minus certain reliefs — most importantly pension contributions and Gift Aid donations. It includes salary, bonuses, taxable benefits, rental and savings income, and dividends, then subtracts those reliefs.

So a £63,000 salary with £4,000 of pension contributions gives an adjusted net income of around £59,000 — below the threshold. Because this is the figure the charge tests, it’s worth calculating properly before assuming you’re caught.

The Child Benefit Charge connects to the pension moves that avoid it, your wider pay, and the tax code that can collect it. These calculators handle each piece.

Methodology & sources

How the maths works

The calculator takes the higher earner’s adjusted net income — taxable income after reliefs such as pension contributions and Gift Aid — and compares it with the £60,000 threshold. Below it, there’s no charge. Above it, the charge is 1% of the total Child Benefit for every full £200 of income over £60,000, which reaches 100% of the benefit at £80,000. The Child Benefit figure is built from £26.05 a week for the first child and £17.25 a week for each additional child, multiplied by 52 weeks. The amount you keep is the benefit received minus the charge. Because the test is individual income, the calculator looks at one person’s figure, not the household total, and because it uses adjusted net income, pension contributions can reduce or remove the charge.

These are illustrative estimates to show how the charge behaves, not a personal tax computation. Real outcomes depend on your exact adjusted net income, the number of children, the Child Benefit rates in force, your pension and Gift Aid contributions, and the current thresholds, all of which can change. The charge applies to the higher earner even where Child Benefit is paid to a partner. The aim is to show what you keep and how planning changes it — not to replace tailored accountancy advice.

Assumptions and conventions used

Lower threshold: £60,000 adjusted net income
Upper threshold: £80,000 (full clawback)
Taper: 1% of benefit per £200 over £60,000
Child Benefit: £26.05/wk first child, £17.25/wk each additional
Annual benefit: ~£1,355 (1 child), ~£2,252 (2 children)
Test: higher earner’s individual income, not household
Adjusted net income is after pension and Gift Aid reliefs
Above £80,000: claim but opt out of payment for NI credits
Figures shown are illustrative current UK figures

Primary sources

This is not tax or financial advice. This calculator shows how the UK High Income Child Benefit Charge is worked out and what you keep, using standard formulas and general conventions. The thresholds, rates, and figures shown are illustrative to demonstrate how the charge behaves, not personal advice or a recommendation. Your actual position depends on your adjusted net income, your number of children, the Child Benefit rates in force, your pension and Gift Aid contributions, and the current thresholds, all of which can change. The charge is based on the higher earner’s individual income, not household income, and household-based reform has been dropped. It can apply even when Child Benefit is paid to a partner, and you may need to register for Self Assessment, with penalties for failing to notify. Claiming Child Benefit can protect State Pension credits even when the charge applies. Before opting out, registering, or planning pension contributions around the charge, consult a qualified accountant and see official guidance at gov.uk.