Tax-Free Childcare calculator
This Tax-Free Childcare calculator shows how much the government adds to your childcare costs and checks the main eligibility rules for 2026/27. Enter what you pay for each child to see your Tax-Free Childcare top-up, or switch to the eligibility check.
Rules last checked 13 October 2026. Rules for 2026/27.
Estimated government top-up
£1,920.00a year
That is £480.00 per 3 months on average for your household. Assumes your costs are spread evenly across four 3-month periods.
- Total childcare cost a year
- £9,600.00
- Your cost after the top-up
- £7,680.00
- Effective saving
- 20.00%
Child 1
- Annual cost
- £9,600.00
- Top-up
- £1,920.00
- Your cost
- £7,680.00
- Saving
- 20.00%
Below the cap: you could add £400.00 of costs a year and still earn extra top-up
Show the working
- Child 1: annual cost = £800.00 × 12 months = £9,600.00.
- Child 1: cost per 3 months = £9,600.00 ÷ 4 = £2,400.00.
- Child 1: top-up per 3 months = lower of £2,400.00 × 20% (£480.00) and the £500.00 cap = £480.00.
- Child 1: annual top-up = £480.00 × 4 = £1,920.00. Your cost = £9,600.00 − £1,920.00 = £7,680.00.
Nothing you enter leaves your device. Not financial or legal advice. Rules and thresholds can change; check GOV.UK before applying.
How Tax-Free Childcare works
You open a childcare account online and pay in by Direct Debit, standing order or bank transfer. The money usually appears within one working day, and the government's top-up is added at the same time. For every £8 you pay in, the government adds £2. You then pay your childcare provider from the account.
GOV.UK gives this example: on a £250 childcare bill, you pay £200 (80%) and the government adds £50 (20%).
How much you can get
| Limit | Standard child | Disabled child |
|---|---|---|
| Government adds per £8 you pay in | £2 | £2 |
| Maximum top-up every 3 months | £500 | £1,000 |
| Maximum top-up a year | £2,000 | £4,000 |
| You pay in to earn the maximum top-up each year | £8,000 | £16,000 |
| Childcare bill that earns the maximum top-up each year | £10,000 | £20,000 |
The top-up is capped for each child in every 3-month period: £500, or £1,000 for a disabled child. Once your payments in a 3-month period reach the amount that earns the cap, paying in more does not earn more top-up. That is why a large childcare bill saves less than 20% overall.
What childcare you can pay for
You can pay approved providers such as registered childminders, nannies, nurseries, playschemes and clubs, a childminder or nanny with a registered agency, registered schools, and home care workers with a registered home care agency. This covers after-school, breakfast and holiday clubs, and extras such as meals, nappies and trips where the provider supplies them.
For a disabled child the money can also pay for more hours of childcare or specialist equipment. Some providers in EEA countries may be eligible, so contact HMRC. Your provider must be signed up to the scheme, so check before you apply.
Who can get Tax-Free Childcare (2026/27 rules)
Your child
You can usually get Tax-Free Childcare until the September after your child turns 11, or 16 if they are disabled.
Work and earnings
You usually need to be working or returning to work. Sick leave, annual leave, and maternity, paternity, shared parental, adoption, statutory neonatal care pay leave and bereaved partner's paternity leave usually count. You and your partner must each expect to earn at least the minimum below in the next 3 months, which equals 16 hours a week at the National Minimum Wage or National Living Wage.
| Age band | Per 3 months | Per week |
|---|---|---|
| 21 or over | £2,643.68 | £203.36 |
| 18 to 20 | £2,256.80 | £173.60 |
| Under 18 or an apprentice | £1,664.00 | £128.00 |
If you started your own business less than 12 months ago, it does not matter how little you earn. If one of you is not working but receives a qualifying benefit, such as Carer's Allowance, and the other works, you may still qualify.
Income limit
You cannot claim if you or your partner expects an adjusted net income of over £100,000 for the current tax year.
Other conditions
You need a National Insurance number and one of: British or Irish citizenship, settled or pre-settled status or a pending application, or permission to access public funds.
Tax-Free Childcare with Universal Credit and childcare vouchers
You cannot get Tax-Free Childcare at the same time as Universal Credit or childcare vouchers. If you are switching from Universal Credit, wait for a decision on your Tax-Free Childcare application before cancelling your claim.
If you have childcare vouchers or directly contracted childcare through your employer, tell your employer within 90 days of applying. Your partner must do the same if they have them. GOV.UK says which scheme suits you depends on your situation, and suggests its childcare calculator for comparing them.
Staying eligible
You must sign in to your childcare account every 3 months to confirm you are still eligible. If you do not, your Tax-Free Childcare stops.
Example top-ups
| Monthly cost | Annual cost | Annual top-up | Your cost after top-up | Saving |
|---|---|---|---|---|
| £300.00 | £3,600.00 | £720.00 | £2,880.00 | 20.00% |
| £500.00 | £6,000.00 | £1,200.00 | £4,800.00 | 20.00% |
| £700.00 | £8,400.00 | £1,680.00 | £6,720.00 | 20.00% |
| £800.00 | £9,600.00 | £1,920.00 | £7,680.00 | 20.00% |
| £900.00 | £10,800.00 | £2,000.00 | £8,800.00 | 18.52% |
| £1,000.00 | £12,000.00 | £2,000.00 | £10,000.00 | 16.67% |
| £1,500.00 | £18,000.00 | £2,000.00 | £16,000.00 | 11.11% |
Assumes the same cost each month and 12 months of payments. Your actual top-up depends on what you pay in each 3-month period.
| Monthly cost | Annual cost | Annual top-up | Your cost after top-up | Saving |
|---|---|---|---|---|
| £800.00 | £9,600.00 | £1,920.00 | £7,680.00 | 20.00% |
| £1,200.00 | £14,400.00 | £2,880.00 | £11,520.00 | 20.00% |
| £1,500.00 | £18,000.00 | £3,600.00 | £14,400.00 | 20.00% |
| £1,600.00 | £19,200.00 | £3,840.00 | £15,360.00 | 20.00% |
| £2,000.00 | £24,000.00 | £4,000.00 | £20,000.00 | 16.67% |
Assumes the same cost each month and 12 months of payments. Your actual top-up depends on what you pay in each 3-month period.
About this calculator
Last reviewed 13 October 2026. It assumes your childcare costs are spread evenly across four 3-month periods. It does not check whether your provider is signed up, tax credits, childcare bursaries or grants, foster care or immigration status details, and it does not include free childcare hours. Read how we build and check our calculators.
Frequently asked questions
How does Tax-Free Childcare work?
You open a childcare account online and pay money in. For every £8 you pay in, the government adds £2. You then use the balance to pay your registered childcare provider. Payments usually appear in your account within one working day, and the government's top-up is added at the same time.
How much Tax-Free Childcare can I get?
The government top-up is up to £500 every 3 months for each child, which is up to £2,000 a year. For a disabled child it is up to £1,000 every 3 months, or £4,000 a year. To earn the full £2,000 for a child you need to pay in £8,000 a year, which covers a £10,000 childcare bill.
Who is eligible for Tax-Free Childcare?
Your child usually needs to be 11 or younger (16 or younger if disabled), living with you, and you usually need to be working or returning to work. You and your partner must each expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage, and neither of you can have an adjusted net income over £100,000. Your provider must be signed up to the scheme.
What is the minimum income for Tax-Free Childcare?
Each parent usually needs to expect to earn at least £2,643.68 in a 3-month period if aged 21 or over, £2,256.80 if aged 18 to 20, or £1,664 if under 18 or an apprentice. These figures equal 16 hours a week at the relevant minimum wage. If you started your own business less than 12 months ago, the minimum does not apply.
Can I get Tax-Free Childcare if I earn over £100,000?
No. You cannot claim if you or your partner has an expected adjusted net income of over £100,000 for the current tax year. Exactly £100,000 is within the limit.
Can I get Tax-Free Childcare and Universal Credit?
No. GOV.UK says you cannot get Tax-Free Childcare at the same time as claiming Universal Credit or childcare vouchers. If you are switching from Universal Credit, wait for a decision on your Tax-Free Childcare application before cancelling your Universal Credit claim.
Can I use Tax-Free Childcare if I get childcare vouchers?
Not at the same time. If you apply for Tax-Free Childcare and have childcare vouchers or directly contracted childcare through your employer, you must tell your employer within 90 days so they can stop them. Your partner must do the same if they have them.
What childcare can I pay for with Tax-Free Childcare?
You can pay approved providers such as registered childminders, nannies, nurseries, playschemes and clubs, registered schools, and home care workers with a registered agency. This includes after-school, breakfast and holiday clubs, and extras like meals, nappies and trips where the provider supplies them.
Do I have to confirm my Tax-Free Childcare every 3 months?
Yes. You must sign in to your childcare account every 3 months to confirm you are still eligible. If you do not, your Tax-Free Childcare will stop.
Is the Tax-Free Childcare calculator on PayPrompt official?
No. It is an independent calculator that follows the rules on GOV.UK. It gives an estimate and an indicative eligibility check, so always confirm on GOV.UK before relying on it.
Sources
Checked 13 October 2026:
Browse all UK calculators.
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