Calculate Your Child Benefit Tax Repayment
How Does the High Income Child Benefit Charge (HICBC) Work in 2026/27?
The High Income Child Benefit Charge (HICBC) is a statutory tax clawback applied to individuals receiving Child Benefit whose adjusted net income exceeds £60,000. The charge increases progressively at a rate of 1% for every £200 earned between £60,000 and £80,000.
What are the Statutory Child Benefit Rates and Taper Thresholds for 2026/27?
Child Benefit is paid weekly for eligible children up to age 16 (or 20 in approved education). The statutory taper applies once adjusted net income crosses £60,000.
| Income Threshold | Clawback Rate | Net Benefit Retained | Statutory Taper Mechanism |
|---|---|---|---|
| Up to £60,000 | 0% | 100% | Full Child Benefit retained with no tax liability |
| £60,001 to £79,999 | 1% – 99% | 99% – 1% | Tapers at 1% for every £200 earned over £60,000 |
| £80,000 and above | 100% | 0% | Full benefit repaid via Self Assessment or PAYE code |
How is Adjusted Net Income Calculated for Child Benefit?
Adjusted net income is your total taxable income (salary, bonuses, dividends, rental income) minus gross pension contributions and Gift Aid donations. Making additional pension contributions can reduce your adjusted net income below £60,000 and protect your Child Benefit.
Step-by-Step Child Benefit Tax Calculations (Worked Examples)
The mathematical breakdowns below show how the 1% per £200 taper formula determines exact tax charge liabilities.
£65,000 Earner (2 Children)
£70,000 Earner (2 Children — 50% Taper)
£80,000+ Earner (3 Children)
Frequently Asked Questions
At what income do I start paying the High Income Child Benefit Charge in 2026?
You start paying the High Income Child Benefit Charge when your adjusted net income exceeds £60,000. The charge tapers at 1% for every £200 earned above £60,000, reaching a 100% clawback at £80,000.
How is the Child Benefit tax charge calculated?
The tax charge is calculated as 1% of your total family Child Benefit for every £200 of adjusted net income above £60,000. At £70,000, the charge is exactly 50% of the benefit received.
Is Child Benefit tax based on individual or household income?
HICBC is based solely on the highest individual earner's adjusted net income in the household. Two parents earning £59,000 each pay £0 tax charge, while a single earner on £70,000 loses 50%.
Can pension contributions reduce the Child Benefit tax charge?
Yes. Gross pension contributions and Gift Aid donations reduce your adjusted net income. Contributing enough into a pension to bring net income below £60,000 completely eliminates the HICBC tax charge.