Answers · UK 2025/26

How much is the High Income Child Benefit Charge on £74,000 income with two children?

On £74,000 adjusted net income in 2026/27 with two children, the High Income Child Benefit Charge is £1,636.18, which is 70% of the £2,337.40 combined annual Child Benefit for a first and additional child.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

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The High Income Child Benefit Charge (HICBC) claws back 1% of the household's total Child Benefit for every £200 of adjusted net income above £60,000, reaching 100% at £80,000. On £74,000, the excess above the threshold is £14,000, and dividing by £200 gives 70 -- so the charge is 70% of the total Child Benefit received. With two children, annual Child Benefit in 2026/27 is £1,406.60 for the first child plus £930.80 for the second, totalling £2,337.40. The charge is therefore £2,337.40 times 70%, which is £1,636.18, leaving only £701.22 of Child Benefit actually retained after the charge is deducted. At £74,000, a family is well into the upper part of the taper, only £6,000 short of losing all Child Benefit entirely. Since the charge is based on the higher earner's individual adjusted net income rather than combined household income, a couple where one partner earns £74,000 and the other earns nothing pays the same £1,636.18 charge as a couple where both partners earn £37,000 each and keep 100% of their Child Benefit -- a widely criticised feature of the charge, since total household income is identical in both scenarios but the tax outcome is very different. Salary sacrifice into a pension is one of the most effective ways to reduce adjusted net income and lower this charge, since it reduces the figure used for the HICBC calculation directly. Use the Child Benefit calculator to model different pension contribution levels against your charge.