High Income Child Benefit Charge 2026: The £60k Threshold

What is the High Income Child Benefit Charge in 2026/27?

The High Income Child Benefit Charge (HICBC) is a tax charge that claws back Child Benefit when you or your partner earn above a set income threshold. In 2026/27, the charge starts at adjusted net income of £60,000 and removes the entire benefit by £80,000.

It does not stop you claiming Child Benefit — payments continue as normal. Instead, the higher earner in the household repays some or all of the benefit through Self Assessment after the tax year ends.

How is the HICBC calculated?

The charge is a straight taper: for every £200 your adjusted net income exceeds £60,000, you repay 1% of the Child Benefit received in that tax year. At exactly £60,000 there is no charge. At £80,000 or above, the charge equals 100% of the benefit — you effectively receive nothing net.

The percentage is based on total Child Benefit paid to the family, not per child individually. More children means a larger annual benefit figure, so each percentage point costs more in pounds.

What counts as adjusted net income?

Adjusted net income is broadly your total taxable income before the personal allowance, minus certain reliefs. For most employees this means your gross salary plus any taxable benefits (such as a company car or private medical insurance), minus pension contributions made through salary sacrifice or personal contributions that get tax relief.

It is not the same as take-home pay. A £65,000 salary with £5,000 of pension contributions has adjusted net income of £60,000 — eliminating the HICBC entirely, even though your payslip shows a lower gross figure.

• Includes: salary, bonuses, rental income, dividends, taxable benefits.
• Reduces income: pension contributions, gift aid donations.
• Does not include: Child Benefit itself, ISA interest, tax-free allowances.

Who pays the charge?

The charge applies to the partner with the higher adjusted net income — not the person who receives Child Benefit payments. If you earn £72,000 and your partner earns £45,000, you pay the charge even if they are the named claimant.

Married couples and civil partners are treated as one household for this rule. Cohabiting couples who are not married are assessed individually — only the higher earner above £60,000 pays, based on total Child Benefit received by the family.

The marginal-rate trap near £60,000

Between £60,000 and £80,000, the HICBC creates an unusually high effective marginal tax rate. Each extra £200 of income triggers 1% of your total annual Child Benefit to be clawed back — on top of income tax and National Insurance.

For one child, losing 1% of £1,407 per £200 of income adds roughly 7 percentage points to your marginal rate. Combined with 40% income tax and 2% employee NI in the higher-rate band, an extra £200 of salary near £65,000 can leave you with less than £100 — an effective rate approaching 50%.

This is why a modest pension contribution can be particularly valuable in this income band: it cuts adjusted net income, reduces the HICBC and saves higher-rate tax simultaneously.

Using pension contributions to reduce the charge

Pension contributions are one of the few levers that directly reduce adjusted net income. A £3,000 contribution brings a £63,000 salary down to £60,000 — wiping out the charge. A £5,000 contribution on a £68,000 salary reduces income to £63,000, cutting the charge from 40% to 15%.

Salary sacrifice is often the most efficient route because you save employee NI as well as income tax and HICBC. Personal pension contributions that receive tax relief at source also reduce adjusted net income, but the mechanics differ — check which method your employer offers.

Use our Pension Contribution Calculator to model the tax saving, then cross-check with the HICBC Calculator to see the combined effect on Child Benefit.

Self Assessment: what you need to do

If the HICBC applies and you are not already in Self Assessment, you must register with HMRC by 5 October after the tax year ends. You then file a tax return and pay the charge by 31 January.

HMRC receives Child Benefit payment data directly, so the charge is usually calculated automatically on your return. Keep your own records of how much benefit was paid to your household during the year — especially if you started or stopped claiming mid-year.

Missing the registration or filing deadline can result in penalties, even if the only reason you need to file is the HICBC.

Should you still claim Child Benefit above £60,000?

Many families above the threshold still register. Claiming protects the non-earning or lower-earning partner's National Insurance credits, which count toward the State Pension. If nobody claims, those credits can be lost.

A common approach: the lower earner claims Child Benefit and receives payments; the higher earner pays the HICBC via Self Assessment. Alternatively, the higher earner can claim but opt out of payments while still securing NI credits — see our Child Benefit guide for the full process.

Calculate your HICBC

Use our High Income Child Benefit Charge Calculator to enter your adjusted net income and number of children, and see the charge percentage, amount due and how much benefit you keep. Pair it with the PAYE Salary Calculator to estimate adjusted net income from your gross salary, and our Child Benefit guide for rates, claiming and NI credit rules.