The High Income Child Benefit Charge in 2026/27: The £60k-£80k Taper Explained
How the High Income Child Benefit Charge works in 2026/27: the £60,000-£80,000 taper, who pays, how to calculate it, and ways to legally reduce it.
Quick answer
In 2026/27 the High Income Child Benefit Charge claws back Child Benefit once the higher-earning partner's adjusted net income passes £60,000. The charge rises gradually to 100% of the benefit by £80,000, at a rate of 1% for every £200 of income above £60,000. If your income sits in that band, pension contributions or Gift Aid can reduce or remove it.
How the £60k-£80k taper works
The HICBC is not a flat cliff edge. It tapers across a £20,000 income band so the clawback is proportional.
For every £200 of adjusted net income above £60,000, you repay 1% of the Child Benefit you (or your partner) received. Because £20,000 divided by £200 equals 100, the charge reaches 100% exactly at £80,000.
The formula is straightforward:
Charge = Child Benefit received x ((adjusted net income - £60,000) / £20,000), rounded down to the nearest £100 of excess income.
Suppose you receive £2,000 of Child Benefit across the year and your adjusted net income is £70,000. You are £10,000 over the threshold, which is 50% of the £20,000 band, so the charge is £1,000. At £75,000 it would be £1,500. At £80,000 or above, the full £2,000 is reclaimed.
Whose income counts and how it is measured
The charge falls on the partner with the higher adjusted net income, even if the other partner is the one named on the Child Benefit claim. A "partner" includes a spouse, civil partner, or someone you live with as a couple.
This produces the well-known quirk of the HICBC: it ignores household income. A couple each earning £58,000 (a combined £116,000) pay nothing, while a single earner on £80,000 loses the lot. It is widely criticised as unfair, but it remains the law.
Adjusted net income is your total taxable income from all sources, minus certain reliefs:
- Salary, bonuses, and taxable benefits in kind
- Self-employed profits and rental income
- Savings interest above the Personal Savings Allowance (£1,000 basic, £500 higher) and dividends above the £500 allowance
- Less grossed-up pension contributions and Gift Aid donations
It is the figure after those deductions that matters, which is why two people with the same salary can face very different charges.
A worked example for 2026/27
Imagine a family with two children. Child Benefit for 2026/27 is paid weekly, and across a full year a two-child family receives a meaningful sum. The exact entitlement depends on the published weekly rates, so check the current rate or use the
High Income Child Benefit Charge Calculator
Calculate how much Child Benefit you keep after the High Income Child Benefit Charge based on your adjusted net income.
Open HICBC Calculator calculatorTake a parent with a £74,000 salary and no other income. Their adjusted net income is £74,000, which is £14,000 over the £60,000 threshold. That is 70% of the £20,000 taper band, so 70% of their Child Benefit is reclaimed through the charge.
If they instead pay £14,000 gross into a pension, their adjusted net income falls to £60,000 and the charge disappears entirely. They keep all the Child Benefit and also receive Income Tax relief on the pension contribution. The
Pension Calculator
Estimate your pension pot at retirement and projected annual income.
Open Pension calculatorReducing the charge legally
Because the test is on adjusted net income, the most effective levers are deductions that reduce that figure:
- Pension contributions. Personal or salary sacrifice contributions lower adjusted net income pound for pound (grossed up). The 2026/27 Annual Allowance is £60,000, so there is plenty of headroom for most families.
- Gift Aid donations. Charitable giving under Gift Aid is grossed up and deducted, nudging you below a threshold.
- Salary sacrifice for other benefits. Sacrificing salary for additional pension or certain benefits reduces taxable pay and can also cut Employee National Insurance (8% on earnings between £12,570 and £50,270).
These are not loopholes; they are the income definition working as intended. For higher earners straddling the £60,000 mark, even a modest pension top-up can produce a large effective return once the recovered Child Benefit and the Income Tax relief are combined.
How to report and pay it
Traditionally the HICBC is settled through Self Assessment. If you become liable and have not filed before, you must register by 5 October following the end of the tax year. The charge is then included in your tax calculation, with payment due by 31 January.
From 2026/27, HMRC is rolling out the ability for some employed taxpayers to pay the charge directly through their PAYE tax code without filing a full return. If you are self-employed or already file for other reasons, Self Assessment remains the route.
Should you still claim Child Benefit?
Yes, in almost all cases, even if you expect to repay it. You can claim and then opt out of receiving payments, which avoids the charge while preserving two valuable benefits:
- National Insurance credits for a parent at home with a child under 12, protecting their qualifying years towards the New State Pension (around £241.30 a week).
- An automatic National Insurance number for your child at 16.
If your income later falls below £60,000, you can simply restart the payments.
Devolved note
Child Benefit and the HICBC are reserved UK-wide matters, so the £60,000 and £80,000 thresholds and the taper apply identically in England, Scotland, Wales and Northern Ireland. The difference for Scottish taxpayers is the underlying Income Tax structure, with intermediate (21%), higher (42%) and advanced (45%) bands, which changes the overall marginal tax position even though the HICBC mechanics are the same. Check your
Take-Home Pay Calculator
Calculate your net salary after income tax, National Insurance and student loan deductions.
Open Take-Home Pay calculatorFrequently asked questions
At what income does the High Income Child Benefit Charge start in 2026/27?
The charge begins once the higher earner's adjusted net income exceeds £60,000. Between £60,000 and £80,000 the charge tapers in: you repay 1% of your Child Benefit for every £200 of income above £60,000. Once adjusted net income reaches £80,000, the charge equals 100% of the Child Benefit received, effectively clawing all of it back through the tax system.
Who actually pays the HICBC if both parents earn money?
The charge falls on whichever partner has the higher adjusted net income, regardless of who actually claims and receives the Child Benefit. 'Partner' means a spouse, civil partner, or someone you live with as if married. If both earn under £60,000, there is no charge even if their combined income is well over £80,000, because the test looks at the highest individual income, not the household total.
How do I calculate adjusted net income for the HICBC?
Start with your total taxable income (salary, profits, savings, dividends, rental income, taxable benefits). Then deduct grossed-up Gift Aid donations and pension contributions paid with tax relief. The result is your adjusted net income. This is the figure tested against the £60,000 and £80,000 thresholds, so pension and Gift Aid contributions can pull you below £60,000 and remove the charge entirely.
Can pension contributions reduce or remove the charge?
Yes. Pension contributions reduce adjusted net income, which is the figure used for the HICBC. If your income is £66,000 and you contribute £6,000 gross to a pension, your adjusted net income falls to £60,000 and the charge disappears. The Annual Allowance for 2026/27 is £60,000, so most people have ample room. Salary sacrifice arrangements work similarly and also cut National Insurance.
Should I still claim Child Benefit if I'll just pay it back?
Often yes. Claiming protects your State Pension by giving National Insurance credits to a parent at home with a child under 12, and gives the child a National Insurance number automatically at 16. You can claim but tick the box to not receive payments, avoiding the charge while keeping the credits. New State Pension is around £241.30 a week, so protecting qualifying years is valuable.
How do I pay the High Income Child Benefit Charge?
You normally report and pay it through Self Assessment, registering by 5 October following the tax year if you have not before. From 2026/27 HMRC also lets some employed taxpayers pay the charge through their PAYE tax code instead of filing a return. The charge is collected as part of your overall tax bill, with the payment deadline of 31 January following the end of the tax year for Self Assessment.
Does the HICBC work the same in Scotland, Wales and Northern Ireland?
Yes. Child Benefit and the HICBC are reserved UK-wide matters, so the £60,000 and £80,000 thresholds apply identically across England, Scotland, Wales and Northern Ireland. However, Scottish taxpayers have different Income Tax bands, so the combined marginal effect of the charge differs north of the border. The Child Benefit amounts and the taper mechanics themselves do not change by nation.
Try the calculators
High Income Child Benefit Charge Calculator
Calculate how much Child Benefit you keep after the High Income Child Benefit Charge based on your adjusted net income.
Pension Calculator
Estimate your pension pot at retirement and projected annual income.
Take-Home Pay Calculator
Calculate your net salary after income tax, National Insurance and student loan deductions.
Related reading
HICBC Real-Time PAYE Collection 2026: Pay the Child Benefit Charge Without Self Assessment
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HICBC 2026/27: Why Some Higher Earners Should Opt Back Into Child Benefit
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Flexible Retirement: Working Part-Time While Drawing Your Pension in 2026/27
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