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🇬🇧 UK-only · 2026/27 Tax Year · Free

Child Benefit & HICBC Calculator 2026

Model your Child Benefit, calculate your High Income Charge (HICBC), and see exactly how paying into a pension can legally reduce your tax bill.

✓£60k - £80k Taper✓Pension Modelling✓NI Credits Check✓Free — no sign-up

Household Details

Enter the personal pension contributions made by the highest earner. This legally reduces the HICBC charge!

Final Net Benefit After Tax

£1753.05 / yr

How your charge is calculated:

Total Child Benefit:£2337.40
Highest Earner Income:£65000.00
Adjusted Net Income:£65000.00
HICBC Charge (25.0%):- £584.35
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Child Benefit Rates 2026/27

Child Benefit is a monthly payment made to anyone responsible for raising a child under 16 (or under 20 if they stay in approved education or training). In the 2026/27 tax year, the rate is £27.05 a week for your eldest or only child, and £17.90 a week for each additional child.

How the High Income Child Benefit Charge Is Calculated

If you or your partner earn over £60,000, you will have to pay back some or all of your Child Benefit in the form of a tax charge (the HICBC). This only applies to the highest earner in the household.

The 1% per £200 Taper Formula

The government claws back 1% of your total Child Benefit for every £200 your Adjusted Net Income goes above £60,000. This means if you earn £70,000, exactly half (50%) of your benefit is taken back as a tax charge. If you earn £80,000 or more, 100% of the benefit is taken back. You can check your basic Adjusted Net Income using our Take-Home Pay Calculator.

Can I Reduce My HICBC With Pension Contributions?

Yes! This is the most common way to legally avoid the charge. The HICBC is based on your "Adjusted Net Income". Any money you pay into a personal pension is deducted from your gross income. For example, if you earn £65,000, you will normally face a 25% HICBC charge. However, if you put £5,000 into your pension, your Adjusted Net Income drops to £60,000, completely wiping out the tax charge. You can calculate the exact impact of this using our Salary Sacrifice Calculator.

Do I Need to Register for Self Assessment?

If you are liable for the HICBC and you do not opt out of receiving the payments, you are legally required to register for Self Assessment and complete a tax return to pay the charge back to HMRC. If you have overpaid HICBC in previous years, you should check if you are owed a refund using our P800 Tax Refund Calculator.

Why You Should ALWAYS Claim Even If You Earn Over £80,000

If you earn over £80,000, 100% of the benefit is clawed back. It is tempting to simply cancel your claim to avoid the hassle of Self Assessment. Do not do this. Claiming Child Benefit automatically credits the non-working parent (or the parent earning under the lower earnings limit) with National Insurance contributions. These credits are vital for building their State Pension. You should submit the claim, but tick the box that says "opt out of receiving payments". This secures the NI credits without triggering the tax charge.

Child Benefit

Frequently asked questions

What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge (HICBC) is a tax charge that effectively claws back some or all of your Child Benefit if the highest earner in your household earns more than £60,000 a year.
At what income do I have to pay back Child Benefit in 2026?
The threshold is £60,000. If the highest earner makes between £60,000 and £80,000, a percentage of the benefit is clawed back. If they earn £80,000 or more, 100% of the benefit is clawed back.
How much Child Benefit will I receive in 2026/27?
In the 2026/27 tax year, the standard rate is £27.05 a week for your first (or oldest) child, and £17.90 a week for each additional child.
Should I opt out of Child Benefit if I earn over £60,000?
No! Even if you earn over £80,000 and the benefit is 100% clawed back, you should still claim it but tick the box to 'opt out of receiving payments'. Claiming it ensures the non-working parent receives vital National Insurance credits toward their State Pension.
How is the HICBC calculated — what is the 1% per £200 rule?
For every £200 your 'Adjusted Net Income' sits above £60,000, you are charged 1% of your total Child Benefit amount. This means at £70,000 you lose 50%, and at £80,000 you lose 100%.
Can my partner's income affect my Child Benefit?
The HICBC only looks at the income of the HIGHEST earner in the household. A couple where both partners earn £59,000 (total £118,000) will pay no charge, but a couple where one earns £80,000 and the other earns nothing will lose 100% of the benefit.
Can pension contributions reduce my HICBC?
Yes! The HICBC is based on your 'Adjusted Net Income'. Money you put into a personal pension is deducted from your gross income, lowering your Adjusted Net Income and therefore lowering (or completely removing) the tax charge.
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