How to use the Tax-Free Childcare calculator
- 1 Enter the monthly childcare cost for each child.
- 2 Enter how many children you pay for, and how many are disabled.
- 3 Enter your earnings and your partner's earnings (0 if you are a single parent).
- 4 Say whether you get Universal Credit or childcare vouchers, then read the top-up.
Worked example
One child with nursery fees of £600 a month, parents earning £32,000 and £28,000. The quarterly bill is £1,800 and the government adds 20%, which is £360 a quarter, under the £500 cap. Over a year the top-up is £1,440, so the family pays £5,760 of the £7,200 bill.
Getting the full top-up
- Pay in up to £2,000 a quarter per child to get the maximum £500 top-up.
- Reconfirm every 3 months or the top-ups stop.
- Pension contributions can bring income back under £100,000.
- Use it with free hours: it pays for extra hours, meals and holiday clubs.
Check your other family payments with the Child Benefit Calculator and plan time off with the Maternity Pay Calculator.
Features
Top-up per child
20% of the bill, capped at £500 a quarter or £1,000 for a disabled child.
Eligibility check
Minimum earnings at the National Living Wage for 16 hours a week, and the £100,000 limit.
Yearly picture
Shows the bill, the government top-up and what you pay.
When to use it
Nursery fees
See how much nursery costs after the top-up. For your full budget, use the Take-Home Pay Calculator.
Holiday clubs and wraparound care
Tax-Free Childcare can pay for registered breakfast clubs, after-school clubs and holiday camps.
Comparing with Universal Credit
You must choose one scheme. Check your Child Benefit too with the Child Benefit Calculator.
Returning to work
See what childcare will really cost if you go back to work after maternity leave. For pay on leave, see the Maternity Pay Calculator.
Related Pay and Salary tasks
Frequently asked questions
How does Tax-Free Childcare work?
You open an online childcare account for each child and pay money in. The government adds £2 for every £8, which is 20% of the total, up to £500 every three months per child. You then pay your registered childcare provider from the account.
Who is eligible for Tax-Free Childcare?
Working parents of children aged 0 to 11, or up to 16 if disabled. You and any partner must each expect to earn at least the National Living Wage for 16 hours a week, and neither of you can have adjusted net income over £100,000.
What is the minimum I must earn?
In 2026/27 that is about £2,644 every three months, or £10,575 a year, for people aged 21 or over, based on £12.71 an hour for 16 hours a week. The amount is lower for younger workers and apprentices.
Can I get Tax-Free Childcare and free childcare hours?
Yes. You can use Tax-Free Childcare alongside the 15 or 30 hours of free childcare for eligible children, for example to pay for extra hours or meals.
Can I get it with Universal Credit?
No. If you get Universal Credit you must claim childcare costs through Universal Credit instead. You also cannot use Tax-Free Childcare and childcare vouchers at the same time.
What is the maximum top-up?
£2,000 a year per child, or £4,000 for a disabled child. You reach the cap when you pay £2,000 into the account in a quarter, which means a childcare bill of £2,500 every three months.
Do I need to reconfirm my details?
Yes. You must sign in every three months to confirm you are still eligible, or the top-ups stop.
What if one parent earns over £100,000?
The household cannot get Tax-Free Childcare. Pension contributions reduce adjusted net income, so paying more into a pension can bring income back under the limit.
Which childcare can I pay for?
Registered or approved providers such as nurseries, childminders, nannies registered with Ofsted, after-school clubs and holiday schemes. Check that your provider is signed up.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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