Tax-Free Childcare Calculator
Enter your monthly childcare bill and number of children. The calculator shows how much the government adds through Tax-Free Childcare, what you pay yourself, and whether you hit the £2,000-per-child yearly limit. It also checks the earnings rules for both parents.
Your numbers
Full monthly nursery or childminder fee before any support
Adjusted net income
Enter 0 for a single parent household
Result
Government top-up per year
£2,000
| Total childcare bill per year | £14,400 |
|---|---|
| Government top-up per month | £167 |
| You pay per month | £1,033 |
| Top-up needed to hit the £2,000 limit (bill per child/month) | £833 |
You reach the £2,000 per child yearly limit. Anything above that you pay in full.
You cannot use Tax-Free Childcare at the same time as Universal Credit childcare support.
Is going back to work worth it? Run the full comparisonHow Tax-Free Childcare works
You open an online childcare account and pay money in. For every £8 you pay, the government adds £2, so it covers 20% of the total bill. The top-up stops at £500 every three months per child (£2,000 a year), or £1,000 every three months for a disabled child.
Who qualifies
Each parent must be working and expect to earn at least 16 hours a week at the National Living Wage over the next three months. If either parent's adjusted net income is over £100,000, the household loses it entirely. Children qualify up to 11 years old (16 if disabled).
Using it with free hours
Tax-Free Childcare can be used alongside the 15 or 30 funded hours for the hours you still pay for, such as extra days, holidays and meals. Use the 30 hours calculator to work out what you still pay, then put that bill in here.
Frequently asked questions
How much Tax-Free Childcare can I get?
Up to £2,000 per child per year, or £4,000 for a disabled child. You get 20% of what you spend, so you reach the limit once your bill is about £10,000 a year (£833 a month) per child.
Is Tax-Free Childcare worth it?
For most working families paying for care, yes: it is 20% off the bill with no tax to repay. The main exception is if you get Universal Credit, which can cover up to 85% of costs instead.
What is the income limit for Tax-Free Childcare?
Each parent must earn at least 16 hours a week at the National Living Wage, and neither can have adjusted net income over £100,000.
Can I use Tax-Free Childcare with 30 hours free childcare?
Yes. The funded hours reduce the bill, and you can use Tax-Free Childcare for the hours and extras you still pay for.
Next steps
Sources
Results are estimates for planning. Rates change each tax year, so check the official source before you rely on them.