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Tax-Free Childcare Calculator 2026-27

Check your eligibility for Tax-Free Childcare, calculate the government’s 20% top-up on your childcare spending, and see how much you can save each quarter. Enter your details below to get started.

01 —INPUTS
Check Your Tax-Free Childcare

Higher top-up cap (£1,000/quarter)

Adjusted net income

Average UK nursery: £7,000–£15,000/year

✓

You're eligible for Tax-Free Childcare

For every £8 you deposit, the government adds £2 — up to £2,000 per child per year.

02 —RESULTS

Government Top-Up

£1,600

Per year

You Save

20%

£1,600 off

You Deposit

£6,400

Per year

Effective Cost

£6,400

After top-up

03 —BREAKDOWN
Quarterly Breakdown
Child 1Under cap
Cost / quarter£2,000.00
You deposit£1,600.00
Gov top-up£400.00
Annual childcare£8,000
Annual top-up£1,600
Key Rules
  • •You must reconfirm your eligibility every 3 months or top-ups stop.
  • •Unused quarterly allowance does not roll over.
  • •Children are eligible until the September after their 11th birthday (16th if disabled).
  • •Switching from Childcare Vouchers is permanent — you cannot switch back.
  • •You can use Tax-Free Childcare alongside 30 hours free childcare.
  • •Parents on maternity/paternity/adoption leave may qualify if returning within 31 days.
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How Tax-Free Childcare Works

1

Open a Tax-Free Childcare account

Apply through GOV.UK’s childcare service. Both parents (where applicable) must be working and earning at least the equivalent of 16 hours a week at National Minimum Wage over the next three months.

2

Pay into your account

For every £8 you deposit, the government automatically adds £2. You can deposit up to £8,000 per child per year, receiving a maximum government top-up of £2,000 (or £4,000 for a disabled child).

3

Pay your childcare provider

Use the funds in your account to pay registered nurseries, childminders, breakfast clubs, after-school clubs, or holiday play schemes. The provider must be signed up to accept Tax-Free Childcare payments.

Who Can Get Tax-Free Childcare?

To qualify for Tax-Free Childcare, all adults in the household must be working and each must expect to earn at least £2,643.68 in the next three months (equivalent to 16 hours a week at the £12.71 National Living Wage for those aged 21 and over in 2026-27). If you are self-employed, your expected earnings are assessed over the next quarter.

There is also an upper income limit of £100,000 adjusted net income per parent. If either parent earns over £100,000, the household is not eligible. This is assessed individually, not as a combined household figure.

Your child must be under 11 years old (or under 17 if they are disabled). They must also live with you and be a UK resident. Children who are looked after by a local authority are not eligible.

You cannot use Tax-Free Childcare at the same time as Childcare Vouchers, Universal Credit childcare element, or Tax Credits childcare element. If you currently receive any of these, check which scheme gives you the greater benefit before switching.

Tax-Free Childcare vs Childcare Vouchers

Childcare Voucher schemes closed to new entrants in October 2018, so this comparison only applies if you are still receiving vouchers through a legacy employer scheme.

Childcare Vouchers allowed basic-rate taxpayers to receive up to £243 per month in vouchers free of tax and National Insurance, worth around £933 per year per parent. Higher-rate taxpayers received a lower monthly allowance.

Tax-Free Childcare is generally better if your annual childcare costs exceed £9,300 per child, since the maximum top-up of £2,000 per child exceeds the voucher benefit at higher spend levels. It also has no employer involvement, making it more flexible for self-employed parents.

If you are still on Childcare Vouchers and your childcare costs are low, it may be worth staying on the voucher scheme. Use this calculator alongside a voucher comparison to determine which is better for your situation.

Frequently asked questions

How much can I get from Tax-Free Childcare?
For every £8 you pay into your Tax-Free Childcare account, the government adds £2, up to a maximum government top-up of £2,000 per child per year (or £4,000 for a disabled child). This means you can receive up to £500 per child per quarter, or £1,000 per quarter for a disabled child.
Can I get Tax-Free Childcare and 30 hours free childcare?
Yes. Tax-Free Childcare and 30 hours free childcare (for 3- and 4-year-olds) are separate schemes and you can use both at the same time. The 30 hours is a direct entitlement to free childcare hours, while Tax-Free Childcare is a top-up on what you spend beyond those free hours.
What happens if my income goes over £100,000?
If your adjusted net income exceeds £100,000 in any tax year, you are no longer eligible for Tax-Free Childcare. The upper income limit applies to each individual parent — if one parent earns over £100,000, the household loses entitlement even if the other parent earns less. You will need to close your account or stop making payments.
Can self-employed parents claim Tax-Free Childcare?
Yes. Self-employed parents are eligible for Tax-Free Childcare. However, you must expect to earn at least the equivalent of 16 hours per week at the National Minimum Wage over the next three months. If you have recently started self-employment, HMRC allows a grace period where you do not need to meet the minimum income requirement.
What if I'm on maternity or paternity leave?
You can still apply for and use Tax-Free Childcare while on maternity, paternity, adoption, or shared parental leave. The minimum income requirement is treated as being met while you are on statutory leave. Your reconfirmation periods continue, so make sure to reconfirm your eligibility every three months as usual.
Can both separated parents claim for the same child?
No. Only one Tax-Free Childcare account can be opened per child. In cases of separation, the parent who is primarily responsible for paying childcare costs should open and hold the account. If there is a dispute, HMRC will assess which parent has primary care responsibility.
Do I need to reconfirm my eligibility?
Yes. You must reconfirm your eligibility every three months via your childcare account on GOV.UK. If you miss a reconfirmation window, your account will be closed and you will need to reapply. Any unused top-up funds in your account will be returned to HMRC if the account is closed.
Can I switch back to Childcare Vouchers?
Childcare Voucher schemes closed to new entrants in October 2018. If you were already receiving Childcare Vouchers before that date, you may still be receiving them through your employer. You cannot be in both Childcare Vouchers and Tax-Free Childcare at the same time — you must choose one. For most families, Tax-Free Childcare offers a higher maximum top-up, but it is worth comparing based on your specific childcare costs.

Sources

Last updated April 2026. Reflects 2026-27 Tax-Free Childcare rates and eligibility rules.

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