The High Income Child Benefit Charge, explained
If you or your partner earn over £60,000, some or all of your family's Child Benefit is taken back as extra tax. It's called the High Income Child Benefit Charge, and it catches out a lot of families who don't realise they need to pay it.
How it works
- It starts at £60,000 of adjusted net income.
- For every £200 over £60,000, you pay back 1% of your Child Benefit.
- At £80,000 or more, you pay back all of it.
It's based on each person's own income, not the household's. If both of you earn over £60,000, whoever has the higher income pays the charge. "Partner" means someone you're married to, in a civil partnership with, or live with as if you were, and aren't permanently separated from.
How much it costs
In 2026/27, Child Benefit is £27.05 a week for the eldest or only child and £17.90 for each other child. Over a year that's £1,406.60 for one child, or £2,337.40 for two. The charge you'd pay:
| Adjusted net income | Share repaid | One child | Two children |
|---|---|---|---|
| £60,000 | 0% | £0 | £0 |
| £62,000 | 10% | £140.66 | £233.74 |
| £65,000 | 25% | £351.65 | £584.35 |
| £70,000 | 50% | £703.30 | £1,168.70 |
| £75,000 | 75% | £1,054.95 | £1,753.05 |
| £80,000 | 100% | £1,406.60 | £2,337.40 |
The hidden tax rate
Between £60,000 and £80,000, you're already paying 40% income tax and 2% National Insurance on each extra pound. The charge adds more on top. For a family with two children, it takes back £2,337.40 over a £20,000 band, which is about 11.7p of every extra £1. So a pay rise in this range can cost you around 54p in every pound. With one child it adds about 7p.
Reducing the charge
The charge is based on adjusted net income: your total taxable income, including savings interest and dividends, minus certain tax reliefs such as pension contributions and Gift Aid. So paying more into your pension can reduce the charge, or remove it completely.
For example, someone earning £70,000 with two children pays a £1,168.70 charge. If they put an extra £10,000 into their pension through salary sacrifice:
- their income for the charge falls to £60,000, so the charge disappears
- their take-home pay drops by £5,800, but they no longer pay the £1,168.70 charge
- so £10,000 goes into their pension for a real cost of £4,631.30
Pension money is usually locked away until at least age 57 from 2028, so only do this with money you won't need before then. Our pension guide explains the different ways to pay in.
Paying the charge
- Self Assessment: you'll pay through a tax return if you already need to send one for another reason, such as being self-employed, or if you're paying late. The deadline is 31 January after the end of the tax year.
- Through your tax code: if Self Assessment was only for this charge, you can contact HMRC to leave Self Assessment and pay it through PAYE instead.
Should you stop claiming?
If you expect to pay back all of it, you can opt out of receiving the payments instead, and then you don't pay the charge. But don't stop claiming altogether. If you stay registered, the parent who claims still gets National Insurance credits that count towards their State Pension, and your child still gets a National Insurance number. That's especially important if one of you isn't working or earns very little.
See the charge alongside your tax and NI.
Try £70,000 with two children