Child Benefit Tax Calculator 2026/27

Child Benefit Tax Calculator

✓ Verified for 2026/27

Deduction Variables

£
Income minus pension/gift aid contributions.
Child Benefit Received
£2,213
annual payments
Tax Charge Rate
40%
HICBC rate
Annual Tax Charge
£885
owed via tax return
Net Benefit Retained
£1,328
after-tax benefit

Child Benefit Breakdown

Total Benefit Received £2,212.60
HICBC Tax Clawback -£885.04
Net Retained Benefit £1,327.56
Retained 60%
Tax Charge 40%

How We Calculated This

  1. Sum Child Benefit income: Calculate the total child benefit received in the tax year based on the number of qualifying children.
  2. Determine Adjusted Net Income: Establish your total taxable income minus tax-deductible contributions (pensions, Gift Aid).
  3. Apply the High Income Child Benefit Charge (HICBC) threshold: For 2026/27, the charge begins when adjusted net income exceeds £60,000.
  4. Calculate clawback rate: Apply a charge of 1% of the total benefit for every £200 earned between £60,000 and £80,000 (reaching 100% clawback at £80,000).

Real-World Examples

Example 1: Earnings of £65,000 with 2 children

The parent earns £65,000, which is £5,000 above the starting clawback threshold.

Annual Child Benefit (2 children): £2,212.60
Adjusted Income: £65,000
Excess over £60,000: £5,000

Clawback percentage: £5,000 / £200 = 25%
Tax Charge: 25% of £2,212.60 = £553.15
Example 2: Earnings of £85,000

Income exceeds the £80,000 upper limit.

Adjusted Income: £85,000 (Above £80,000 limit)
Clawback percentage: 100%

Tax Charge: 100% of the Child Benefit received. The benefit must be fully repaid through self-assessment.

Frequently Asked Questions

What is the Child Benefit income threshold for 2026/27?

The threshold starts at £60,000. If you or your partner earn more than £60,000, you are subject to the High Income Child Benefit Charge. The benefit is fully clawed back once income hits £80,000.

Who pays the High Income Child Benefit Charge?

The charge is payable by the partner with the highest adjusted net income, regardless of who actually receives the child benefit payments.

How can I avoid paying the Child Benefit tax charge?

You can reduce your adjusted net income back below £60,000 by increasing pension contributions or making Gift Aid donations, which lowers your taxable income.

Is it still worth claiming Child Benefit if I earn over £80,000?

Yes. You can make a "protection claim" where you opt out of receiving payments but still register for the benefit. This protects your National Insurance credits for the State Pension and gets your child their NI number automatically.

How do I pay the Child Benefit tax charge?

You must register for Self Assessment and file a tax return each year to report and pay the High Income Child Benefit Charge.

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About This Calculator

This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.