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The High Income Child Benefit Charge (HICBC) — UK Tax Calculator

UK Tax Calculator

The High Income Child Benefit Charge (HICBC)guide2026/27 · Take-home & tax
Guide · updated for 2025/26

The High Income Child Benefit Charge (HICBC)

If the higher earner's adjusted net income is over £60,000, the High Income Child Benefit Charge claws back some Child Benefit, rising to 100% by £80,000. It's based on the highest individual income, not household income — and a pension contribution can reduce or clear it.

How the £60k–£80k taper works

For 2025/26, the charge applies when the higher-earning partner's adjusted net income exceeds £60,000. You repay 1% of the Child Benefit you received for every £200 of income over £60,000 — so by £80,000 the charge equals 100% of the benefit.

Crucially it's based on the HIGHEST individual income, not the household total: a couple each earning £55,000 (household £110,000) pays nothing, while a single earner on £80,000 loses all of it.

Gross or net income?

It's based on adjusted net income — broadly your taxable income after pension contributions and Gift Aid, not gross salary. That's why pension contributions are the main lever to reduce it.

How to pay it — and how to reduce it

If you're liable you normally register for Self Assessment and pay the charge through your tax return (it can also be collected via your tax code). To reduce or clear it, paying into a pension (especially by salary sacrifice) lowers your adjusted net income — bringing you back under £80,000 or £60,000 keeps more of the benefit.

Common questions

Quick answers for the 2025/26 tax year. For guidance only — not financial advice.