What is the High Income Child Benefit Charge threshold for 2026/27?

The HICBC starts when your adjusted net income exceeds £60,000. For every £200 of income above £60,000, you repay 1% of your child benefit. Once your income reaches £80,000, you repay 100% of the child benefit received.

Should I opt out of child benefit if I earn over £60,000?

Not necessarily. If your adjusted net income is between £60,000 and £80,000, you only repay a portion. It may still be worth claiming to protect your National Insurance credits (which count toward your State Pension). If you earn over £80,000, opting out avoids the hassle of Self Assessment, but you should still fill in the form to protect your NI credits.

Child Benefit Tax Charge Calculator 2026/27

Work out your High Income Child Benefit Charge (HICBC). See how much child benefit you'll repay, whether to opt out, and how pension contributions can reduce your charge.

👶 Calculate Your HICBC

Your Gross Annual Income

Salary, bonuses, rental income, dividends — before tax.

Pension Contributions (gross)

Includes personal pension and SIPP contributions. Reduces adjusted net income.

Gift Aid Donations

Enter what you paid — we gross up by 25% for tax relief.

Number of Children You Claim For

First child: £25.68/week, each additional: £16.97/week (2026/27 rates).

📊 Result

Your HICBC for 2026/27

£0

Based on your adjusted net income

Note: Uses 2026/27 child benefit rates. The HICBC applies to the higher earner in a couple. If both earn under £60,000, no charge applies. Always verify with HMRC guidance.

HICBC Rules for 2026/27: What Changed

From April 2024, the government raised the HICBC thresholds to reduce the number of families caught by the charge:

Income Level	Charge Rate	Action Needed
Under £60,000	0%	Keep claiming — no charge
£60,000 – £80,000	1% per £200 over £60k	Claim but file Self Assessment
Over £80,000	100%	Consider opting out (but protect NI credits)

Before April 2024: The charge started at £50,000 and reached 100% at £60,000. The new thresholds mean a family with one child where the higher earner makes £65,000 now pays 25% of their child benefit back instead of 50%.

How to Reduce Your HICBC

Your adjusted net income determines the charge — not your gross salary. You can legally reduce it through:

Pension contributions: Every £1 into a personal pension or SIPP reduces your adjusted net income by £1. A £5,000 pension contribution could drop a £68,000 earner below the £60k threshold entirely.
Gift Aid donations: HMRC grosses these up by 25%, so a £400 donation reduces your adjusted net income by £500.
Salary sacrifice: Childcare vouchers (if already enrolled), cycle-to-work schemes, and electric car schemes reduce your taxable income.
Trading losses: If you have a side business making a loss, it can be offset against other income.

Frequently Asked Questions

Should I opt out of child benefit if I earn over £80,000?

Opting out means you won't receive payments, so you won't have a charge. However, the person claiming child benefit gets National Insurance credits that count toward their State Pension. If you're not working or not paying enough NI, these credits are valuable. Fill in the form to opt out of payments but still protect your credits.

What if both parents earn £55,000?

No charge applies. The HICBC is based on the higher earner's income. If both earn £55,000, neither exceeds the £60,000 threshold, so you keep 100% of child benefit with no tax charge. This is a common source of confusion — it's based on individual income, not household income.

Do I need to register for Self Assessment for HICBC?

If your adjusted net income is between £60,000 and £80,000 and you receive child benefit, you must register for Self Assessment and pay the charge by 31 January following the tax year. You can opt out of child benefit payments instead to avoid Self Assessment, but you should still protect your NI credits. If your income drops below £60,000, you can restart your claim.