Child Benefit & High Income Tax Charge 2025/26 & 2026/27: Complete Guide
Understand the High Income Child Benefit Charge (HICBC) for 2025/26 and 2026/27. Find out the £60,000 threshold, how the taper works, and whether you should opt out.
Last updated: February 2026
Child Benefit is one of the simplest state payments available to parents in the UK — but if you or your partner earns over £60,000, the High Income Child Benefit Charge (HICBC) claws some or all of it back. Since April 2024, the rules have changed significantly, and many families who previously lost out can now keep more of their benefit.
This guide explains exactly how the charge works in 2025/26, with worked examples so you can see what you'd actually pay. Or use our salary calculator to check your take-home pay and plan around the threshold.
What Is Child Benefit?
Child Benefit is a tax-free weekly payment made to anyone responsible for raising a child under 16 (or under 20 if they're in approved education or training). It's claimed by one parent or guardian per child and is paid regardless of your income level.
The 2025/26 weekly rates are:
| Child | Weekly rate | Annual (52 weeks) |
|---|---|---|
| Eldest or only child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
So a family with two children receives £26.05 + £17.25 = £43.30 per week, or £2,251.60 per year. With three children, that rises to £3,148.60 per year. It's a meaningful amount — but the HICBC can reduce or eliminate it entirely.
The High Income Child Benefit Charge (HICBC)
The HICBC is an income tax charge that effectively claws back Child Benefit from higher-earning families. It applies if either parent (or their partner) has an individual adjusted net income above £60,000.
Key points:
- The charge is based on individual income, not household income. A couple each earning £59,000 (total £118,000) pays no charge, while a single earner on £65,000 does.
- It applies to the higher earner in the household — the person with the greater adjusted net income pays the charge, even if they're not the one claiming the benefit.
- The threshold was raised from £50,000 to £60,000 in April 2024, giving significant relief to families earning between £50,000 and £60,000.
- The charge tapers in gradually — you don't lose all your benefit the moment you cross £60,000.
How the taper works
For every £200 of income above £60,000, you owe a charge equal to 1% of the total Child Benefit received. This means:
- At £60,000 — no charge (0%)
- At £65,000 — charge equals 25% of benefit
- At £70,000 — charge equals 50% of benefit
- At £75,000 — charge equals 75% of benefit
- At £80,000 or above — charge equals 100% of benefit (fully clawed back)
The formula: (Income − £60,000) ÷ £200 × 1% of total Child Benefit received that year.
Worked Examples
Example 1: One child, earning £65,000
| Item | Amount |
|---|---|
| Child Benefit received (1 child) | £26.05 × 52 = £1,354.60 |
| Income over £60,000 | £5,000 |
| Number of £200 increments | £5,000 ÷ £200 = 25 |
| Charge percentage | 25 × 1% = 25% |
| HICBC charge | £1,354.60 × 25% = £338.65 |
| Net benefit kept | £1,015.95 |
You still keep over £1,000 of the benefit — well worth claiming. To see how this affects your overall take-home pay, check the £65,000 salary breakdown.
Example 2: Two children, earning £72,000
| Item | Amount |
|---|---|
| Child Benefit received (2 children) | (£26.05 + £17.25) × 52 = £2,251.60 |
| Income over £60,000 | £12,000 |
| Number of £200 increments | £12,000 ÷ £200 = 60 |
| Charge percentage | 60 × 1% = 60% |
| HICBC charge | £2,251.60 × 60% = £1,350.96 |
| Net benefit kept | £900.64 |
Even with 60% clawed back, this family still keeps over £900 a year. And as we'll explain below, there are strong reasons to keep claiming even if the charge wipes out the financial gain entirely.
Example 3: Earning £80,000 or more (full clawback)
At £80,000, the income above the threshold is £20,000. That's 100 increments of £200, so the charge is 100% of the Child Benefit received. Whether you have one child or five, the entire benefit is effectively repaid through your tax return.
But "full clawback" doesn't necessarily mean you should stop claiming — read on.
Should You Opt Out or Keep Claiming?
Even if you'd repay 100% of the benefit through the HICBC, there are important reasons to keep your Child Benefit claim active:
- National Insurance credits: The parent receiving Child Benefit gets Class 3 NI credits for each year they're not working or earning below the NI threshold. These credits count towards your qualifying years for the State Pension. If you stop claiming entirely, you could lose these credits and end up with a lower pension.
- Automatic NI number: Children registered for Child Benefit automatically receive their own National Insurance number when they turn 16. Without a claim, they'd need to apply separately.
The best of both worlds: claim but opt out of payments
You can submit a Child Benefit claim but choose not to receive the payments. This means:
- You get the NI credits (protecting your State Pension)
- Your child gets their NI number automatically at 16
- You don't receive any money, so there's no HICBC to pay
- No need to register for Self Assessment just for HICBC
This is the recommended approach if the higher earner's income is consistently above £80,000. If income fluctuates around the threshold, it may be better to receive payments and pay whatever charge applies.
How to Pay the HICBC
If you receive Child Benefit and the higher earner's income exceeds £60,000, the higher earner must:
- Register for Self Assessment with HMRC (if not already registered)
- Complete a Self Assessment tax return each year, declaring the Child Benefit received
- Pay the charge by 31 January following the end of the tax year (e.g., by 31 January 2027 for the 2025/26 tax year)
Failing to register and declare can result in penalties. HMRC cross-references Child Benefit claims against PAYE income data, so they do identify people who should be paying the charge.
The charge is calculated on your tax return and added to any other tax you owe. If you normally only have PAYE income and don't file a return, you'll need to start filing specifically because of HICBC.
Using Salary Sacrifice to Avoid the HICBC
One of the most effective strategies for parents earning just above £60,000 is to use pension contributions to bring your adjusted net income below the threshold.
Your adjusted net income is your total taxable income minus certain deductions, including pension contributions made through salary sacrifice or personal pension contributions where you claim tax relief.
Example: Earning £65,000 with one child
Without pension contributions, you'd owe a HICBC charge of £338.65 (as shown above). But if you contribute £5,000 or more to your pension via salary sacrifice:
- Your adjusted net income drops to £60,000 or below
- No HICBC charge applies — you keep the full £1,354.60 benefit
- You save income tax of £2,000 (£5,000 × 40%) on the pension contribution
- You save NI of £100 (£5,000 × 2%) through salary sacrifice
- Your employer also saves NI (13.8%) on the sacrificed amount
In total, a £5,000 pension contribution could save you over £2,400 in tax, NI, and retained Child Benefit — while building your retirement pot. That's an effective return of nearly 50% on the contribution.
For more on how this works, read our salary sacrifice guide and pension tax relief guide.
Recent Changes to the HICBC
The HICBC has been one of the most criticised parts of the UK tax system since its introduction in 2013. Here's what's changed recently:
April 2024 changes
- Threshold raised from £50,000 to £60,000 — anyone earning between £50,000 and £60,000 no longer faces the charge at all
- Taper range extended — the charge previously applied between £50,000 and £60,000 (a £10,000 range). It now applies between £60,000 and £80,000 (a £20,000 range), making the taper more gradual
- Rate changed from 1% per £100 to 1% per £200 — this is what makes the taper gentler over the wider range
Ongoing review
The government has acknowledged that basing the charge on individual income rather than household income creates unfairness. A couple each earning £59,000 (household income of £118,000) pays nothing, while a single-earner family on £65,000 pays the charge. There have been proposals to move to a household income basis, but this has not yet been implemented as of 2025/26 due to the administrative complexity involved.
Quick Reference: Income vs HICBC Charge
| Adjusted net income | Charge (% of benefit) | Net benefit kept (1 child) | Net benefit kept (2 children) |
|---|---|---|---|
| £60,000 or below | 0% | £1,354.60 | £2,251.60 |
| £62,000 | 10% | £1,219.14 | £2,026.44 |
| £64,000 | 20% | £1,083.68 | £1,801.28 |
| £66,000 | 30% | £948.22 | £1,576.12 |
| £68,000 | 40% | £812.76 | £1,350.96 |
| £70,000 | 50% | £677.30 | £1,125.80 |
| £72,000 | 60% | £541.84 | £900.64 |
| £74,000 | 70% | £406.38 | £675.48 |
| £76,000 | 80% | £270.92 | £450.32 |
| £78,000 | 90% | £135.46 | £225.16 |
| £80,000 or above | 100% | £0 | £0 |
Common Questions
Does Child Benefit count as taxable income?
No. Child Benefit itself is not taxable income. The HICBC is a separate tax charge based on the higher earner's income — it's not a tax on the benefit itself.
What if my income changes during the year?
The HICBC is based on your adjusted net income for the full tax year. If your income drops below £60,000 part-way through the year, you'll only owe the charge based on your actual annual income. If you receive a bonus that pushes you over £60,000, the charge applies for that year.
What counts as "adjusted net income"?
It's your total taxable income minus specific deductions including pension contributions (gross amount), Gift Aid donations, and trading losses. This is why pension contributions are so effective at reducing or eliminating the charge.
My partner and I aren't married — does the HICBC still apply?
Yes. The charge applies to anyone living with a partner, whether married, in a civil partnership, or cohabiting. It's based on the higher earner's income in the household where the child lives.
Calculate Your Take-Home Pay
Understanding the HICBC is just one piece of your overall tax picture. Your take-home pay depends on income tax, National Insurance, pension contributions, student loans, and more.
Use our free salary calculator to see your full 2025/26 breakdown — including how pension contributions and salary sacrifice could help you keep more of your Child Benefit.
Ready to calculate your take-home pay?
Use our free salary calculator with the latest 2025/26 rates.
Calculate Your Salary