The Child Benefit tax charge
Last reviewed 26/08/26
Last Gov update 08/06/26
Child Benefit is a tax-free payment. The catch is a separate charge that can take it back once you or your partner earn over £60,000, and by £80,000 the whole payment is gone. The charge is quiet. It lands through your tax return or your tax code, and it pushes your real tax rate higher than the headline bands suggest.
Is Child Benefit taxable?
No. Child Benefit is not taxed as income. You do not pay Income Tax on the payments, and they do not use up your tax-free Personal Allowance. GOV.UK lists Child Benefit among the state benefits you do not pay Income Tax on.
The thing people mix it up with is a separate charge called the High Income Child Benefit Charge. It is not a tax on the benefit itself, but a charge on a high earner that takes back some or all of what the family received. So the money itself is tax-free, and the charge is a clawback that can follow it. The rest of this guide explains that charge.
How the charge works
The charge is called the High Income Child Benefit Charge. It is worked out on your own income, not the household total, so it is the higher earner of a couple who pays it. For every £200 of income above £60,000 you repay 1% of the Child Benefit your family received, so by £80,000 you are repaying 100% of it.
The amount at stake grows with the number of children, because the charge is a percentage of the full Child Benefit you claim. That is why the same salary bites harder for a larger family.
What it does to your real tax rate
Between £60,000 and £80,000 the charge sits on top of the tax and National Insurance you already pay. Each extra pound of income costs you 40% Income Tax, National Insurance, and a slice of your Child Benefit on top, so your marginal rate in this band is well above the 40% the tax tables show. The more children you have, the steeper it gets.
How to keep your Child Benefit
The charge is measured against the same adjusted income as the £100,000 trap, so the same move fixes it. A pension contribution or a Gift Aid donation lowers the income the charge is worked out on, and every pound you bring back under £80,000 buys some of your Child Benefit back until, at £60,000, the charge disappears entirely.
You do not have to stop claiming. Some families opt out of the payments to avoid the charge, but if a pension contribution brings your income down you can keep both the payments and the money you put by for retirement.
See what it costs you
Put your salary and your number of children into the calculator and it shows the charge for your own situation, your real marginal rate, and what a pension contribution would do to both.
Common questions
Do you pay tax on Child Benefit?
No. Child Benefit is not taxed as income, and it does not use up your Personal Allowance. What can happen is separate. If you or your partner earn over £60,000, the High Income Child Benefit Charge takes some of it back. The payment stays tax-free, and the charge claws it back afterwards through your tax return or tax code.
At what salary do you start losing Child Benefit?
Once either parent earns over £60,000, the High Income Child Benefit Charge begins taking Child Benefit back. For every £200 above £60,000 you repay 1% of what your family received, so by £80,000 the whole payment is clawed back. It is based on the higher earner, not the household total.
How do I avoid the Child Benefit tax charge?
The charge is measured against the same adjusted income as the £100,000 trap, so a pension contribution or a Gift Aid donation fixes it. Every pound you bring back under £80,000 buys some Child Benefit back, until at £60,000 the charge disappears. You can keep claiming rather than opt out.
Is the charge based on household income or one salary?
It is worked out on one person, not the household total, so the higher earner of a couple pays it. Two parents each earning £55,000 pay nothing, while a single earner on £70,000 pays the charge, even though that household earns less overall.