TAX-FREE CHILDCARE · 2026/27
Tax-Free Childcare calculator
See the effect of the government top-up before you decide whether the scheme is worth using.
What this calculator does
This calculator estimates the government top-up on eligible childcare costs and helps you understand the cash you may need to pay yourself. It is a planning tool, not an eligibility decision.
Estimated result
- Income ceiling
- Pass
- Minimum earnings
- Pass
- You pay
- £7,200
- Annual top-up cap
- £2,000
Uses the 2026/27 age-21+ minimum earnings test of £2,643.68 per three months. Exceptions apply for some leave, disability, caring and newly self-employed cases.
Worked example
A family paying £8,000 of eligible childcare costs may be able to use the scheme to receive a government top-up, subject to the annual cap and eligibility rules.
Common mistakes
Do not assume every family is eligible.
Do not forget the top-up limits depend on childcare costs.
Do not mix this scheme up with free-hours entitlement.
Why the result can differ
Eligibility depends on income, work status and childcare provider rules.
The top-up is capped, so higher childcare bills do not always create a larger benefit.
This is a planning estimate, not an HMRC eligibility check.
What this calculator does
This page estimates the government top-up on eligible childcare costs and shows the monthly cash you may still need to pay yourself. It is useful for comparing the scheme against childcare vouchers or a plain monthly budget.
Worked example
If a family spends £8,000 on eligible childcare, the scheme can increase the usable value of that spending, but only within the scheme cap and only when the eligibility rules are met. The headline result is helpful for planning, but the official application is still the final check.
Why the result can differ
The result changes with household income, work status, the childcare provider and the size of the eligible bill. Some families are eligible for the scheme but still do not benefit as much as they expect because the top-up cap limits the maximum support.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 14 July 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
GOV.UK: Tax-Free Childcare ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Does this confirm eligibility?
No. You still need to meet the official eligibility conditions.
Can I use this with childcare vouchers?
The rules are different; some schemes are mutually exclusive.