UK HICBC Calculator 2026/27

High Income Child Benefit Charge calculator 2026/27: 1% per £200 of adjusted net income over £60,000, all Child Benefit at £80,000. Net benefit and sacrifice needed.

Benefits & Credits

Calculate the High Income Child Benefit Charge for 2026/27 - 1% of Child Benefit per £200 of adjusted net income over £60,000, reaching 100% at £80,000. Shows the net Child Benefit retained and the salary sacrifice needed to clear the charge.

Worked scenarios for 2026/27

£55,000 income, 1 child (below threshold)

£0 HICBC

Net retained £1,407 a year - 0% clawed back
£65,000 income, 1 child (25% taper)

£351 HICBC

Net retained £1,056 a year - 25% clawed back
£70,000 income, 2 children (50% taper)

£1,168 HICBC

Net retained £1,169 a year - 50% clawed back
£75,000 income, 3 children (75% taper)

£2,451 HICBC

Net retained £817 a year - 75% clawed back
£80,000 income, 2 children (100% claw back)

£2,337 HICBC

Net retained £0 a year - 100% clawed back
£90,000 income, 3 children (full clawback)

£3,268 HICBC

Net retained £0 a year - 100% clawed back

What the High Income Child Benefit Charge is

The High Income Child Benefit Charge (HICBC) is an Income Tax charge that recovers Child Benefit when you or your partner gets it and at least one of you has adjusted net income over £60,000. It was introduced in January 2013 with a £50,000 threshold. From 6 April 2024 Finance (No. 2) Act 2024 s.5 raised the threshold to £60,000 and widened each 1% step from £100 to £200 of income, so the full charge now applies at £80,000 (ITEPA 2003 s.681C). The figures are unchanged for 2025/26 and 2026/27.

The charge falls on the partner with the higher adjusted net income, whoever claims the Child Benefit. It can also apply if someone else gets Child Benefit for a child living with you and you contribute at least an equal amount to the child’s upkeep (gov.uk).

How HICBC is calculated in 2026/27

For each full £200 of adjusted net income above £60,000, the charge is 1% of the Child Benefit received, up to 100% at £80,000.

Steps = floor((adjusted net income - threshold) / step)
Charge % = min(100, steps x 1%)
HICBC = Child Benefit received x Charge %

The rounding down matters at the edges: £60,150 is £150 over the threshold, less than one full step, so the charge is still 0%. At £60,200 it is 1%; at £65,000 it is 25% and at £70,000 50%.

Worked example: £70,000 earner, two children

Child Benefit (2026/27): £27.05 + £17.90 = £44.95 a week, £2,337.40 over 52 weeks
Income above threshold: £10,000, which is 50 steps
Charge: 50% of £2,337.00 (the Child Benefit rounded down to whole pounds) = £1,168.00 for the year, also rounded down (ITEPA 2003 s.681C(3))
Child Benefit kept after the charge: £1,169.40

Worked example: £90,000 earner, three children

Child Benefit: £62.85 a week, £3,268.20 over 52 weeks
Income is above £80,000, so the charge is 100%: £3,268.00
Child Benefit kept: £0.20

At this level the household repays all of its Child Benefit except the pence below a whole pound, because the total is rounded down before the charge is worked out. Many families in this position stay registered for Child Benefit but opt out of the payments (see below).

Child Benefit rates 2026/27

(gov.uk Child Benefit rates)

Eldest or only child: £27.05 a week (£1,406.60 over 52 weeks)
Each additional child: £17.90 a week (£930.80 over 52 weeks)

Over 52 weeks: one child £1,406.60, two £2,337.40, three £3,268.20, four £4,199.00. The 2025/26 rates were £26.05 and £17.25 a week.

What counts as adjusted net income

HMRC defines adjusted net income as total taxable income before Personal Allowances, less certain tax reliefs (gov.uk adjusted net income).

Included: employment income and taxable benefits in kind, self-employed profits, most pensions (including State Pension), savings interest, dividends, rental income, trust income and foreign income. Interest and dividends covered by the Personal Savings Allowance or Dividend Allowance still count, because those allowances are 0% rate bands, not exemptions.
Deducted: Gift Aid donations grossed up (£1.25 for each £1 given), relief-at-source pension contributions grossed up, pension contributions paid gross without relief, and trading losses.
Not included: income that is not taxable, such as ISA income.

Salary sacrifice and net pay arrangement contributions are not deductions here: they are already outside taxable pay.

A worked example: salary £75,000, taxable company car benefit £3,000, relief-at-source pension contributions of £3,200 paid (£4,000 grossed up).

Adjusted net income = 75,000 + 3,000 - 4,000 = 74,000

The pension sacrifice route

For an earner in the taper band, salary sacrifice into a pension lowers adjusted net income pound for pound. On each sacrificed pound between £60,000 and £80,000 (rest-of-UK rates) it:

saves 40% Income Tax and 2% employee NI, and
reduces the HICBC by 1% of the Child Benefit for every £200.

The HICBC part is worth the annual Child Benefit divided by £20,000 per pound, so the combined saving per pound is 49.0% with one child, 53.7% with two, 58.3% with three and 63.0% with four. Scottish taxpayers in this range pay Scottish Income Tax rates, so their figures differ.

Worked sacrifice: £73,000 earner, two children

Before sacrifice: HICBC = 65% × £2,337.00 = £1,519.00, rounded down.
Sacrifice £13,000 into a workplace pension. Adjusted net income falls to £60,000 and the HICBC to £0.
Income Tax and NI saved on the £13,000: 42% × £13,000 = £5,460.
HICBC saved: £1,519.00.
Total saving: £6,979.00, or 53.7% of the amount sacrificed, which goes into the pension in full.

Salary sacrifice must not take cash pay below the National Minimum Wage, and the pension money is not accessible until normal minimum pension age.

Should you stop claiming Child Benefit at high incomes?

Not necessarily. You can stay registered for Child Benefit but opt out of the payments. You then pay no charge, and gov.uk says you still get:

National Insurance credits that count towards your State Pension. A parent registered for Child Benefit for a child under 12 gets credits even without receiving the money (gov.uk NI credits). Under the new State Pension each qualifying year is worth 1/35 of the full rate (£241.30 a week in 2026/27), about £359 a year, where that year would otherwise be missing from your record.
A National Insurance number for your child without them having to apply shortly before they turn 16.

You can opt back in to payments later if your circumstances change.

Couples where both partners earn over £60,000

If both partners are over the threshold, only the one with the higher adjusted net income pays. Example: partner A has £75,000, partner B £85,000, two children. Partner B pays the charge (100%); partner A pays none. The charge is worked out on one person’s income, not the household’s, so a single earner on £85,000 pays the same charge as a couple who both earn £85,000.

Paying the HICBC

There are two ways to pay (gov.uk):

Through PAYE: HMRC changes your tax code so the charge is collected from your pay or pension. This is available if you do not need a tax return for another reason and it is on or before 31 January after the tax year concerned.
Through Self Assessment: required if you need a tax return anyway (for example because you are self-employed) or it is after 31 January following the tax year. If you do not normally file, you must register by 5 October after the tax year.

If you have been filing only because of the charge, you can phone HMRC to leave Self Assessment and pay through PAYE instead.

See our methodology for how figures on this site are sourced.

High Income Child Benefit Charge explainer - the standalone page with rate tables.
60% Tax Trap - the £100,000 Personal Allowance taper.
Pension Contribution Calculator - model the pension contribution needed to clear HICBC.
Salary Sacrifice Calculator - the combined tax and NI saving from sacrifice.
Tax Trap Calculator - the high-marginal-rate cliff edges.

Other UK tax calculators that pair with the HICBC.

Cite or embed - free under CC BY 4.0

Frequently asked questions

What is the High Income Child Benefit Charge (HICBC)?

HICBC is an Income Tax charge that recovers Child Benefit when you or your partner gets it and at least one of you has adjusted net income over £60,000. The charge is 1% of the Child Benefit for every £200 of income over £60,000, so all of it is repaid at £80,000. If both partners are over the threshold, the one with the higher income pays. It can be paid through a PAYE tax code or through Self Assessment.

When did the threshold rise from £50,000 to £60,000?

From 6 April 2024 (tax year 2024/25), by Finance (No. 2) Act 2024 s.5, which amended ITEPA 2003 s.681C. The threshold rose from £50,000 to £60,000 and the step from £100 to £200, so the full charge now applies at £80,000 instead of £60,000. The figures are unchanged for 2025/26 and 2026/27.

How is the HICBC calculated in 2026/27?

Take the higher partner's adjusted net income, subtract £60,000, divide by £200 and round down. That many percent (capped at 100%) of the Child Benefit is the charge. Example: £70,000 income, two children. £10,000 over the threshold is 50 steps, a 50% charge. Two children get £44.95 a week, £2,337.40 a year over 52 weeks, so the charge is £1,168.00.

What are the Child Benefit rates for 2026/27?

£27.05 a week for the eldest or only child and £17.90 a week for each additional child. Over 52 weeks: one child £1,406.60, two £2,337.40, three £3,268.20, four £4,199.00. The 2025/26 rates were £26.05 and £17.25.

Who actually pays the HICBC?

The partner with the higher adjusted net income, even if the other partner is the one who claims Child Benefit. "Partner" means someone you live with as a married couple, civil partners or as if you were. You can pay through PAYE (HMRC adjusts your tax code) unless you need a tax return for another reason or it is after 31 January following the tax year; otherwise you register for Self Assessment by 5 October after the tax year.

Can pension sacrifice reduce or eliminate HICBC?

Yes. Salary sacrifice lowers your salary, so it lowers adjusted net income pound for pound. Relief-at-source contributions are deducted from adjusted net income at their grossed-up amount, and net pay arrangement contributions are already taken out of taxable pay. A £70,000 earner with two children who sacrifices £10,000 brings adjusted net income to £60,000 and removes the charge. Between £60,000 and £80,000 each sacrificed pound also saves 40% Income Tax and 2% NI (rest of UK rates).

Should I stop claiming Child Benefit if my income is over £80,000?

Not necessarily. You can stay registered for Child Benefit but opt out of the payments. You then pay no charge, but you still get National Insurance credits that count towards State Pension (for a parent with a child under 12) and your child still gets a National Insurance number automatically before turning 16. Gov.uk lists both benefits of opting out rather than not claiming.

What counts as adjusted net income for HICBC?

Your total taxable income before Personal Allowances, including employment income and benefits in kind, self-employed profits, pensions, rental income, savings interest and dividends, less certain reliefs: grossed-up Gift Aid donations, grossed-up relief-at-source pension contributions, pension contributions paid gross, and trading losses. Interest and dividends covered by the Personal Savings Allowance or Dividend Allowance still count. ISA income does not, as it is not taxable. It is the same measure used for the £100,000 Personal Allowance taper.