Tax-Free Childcare Calculator 2025-26
The government adds 25p for every £1 you put in (capped at £2,000/year per child). Find your salary and childcare cost combination to see your exact saving.
How Tax-Free Childcare works in 2025-26
Quick reference: annual government top-up by childcare cost
| Annual childcare cost | Government top-up | You pay | Monthly cost to you |
|---|---|---|---|
| £5,000 | £1,250 | £3,750 | £313/month |
| £8,000 | £2,000 | £6,000 | £500/month |
| £10,000 | £2,000 | £8,000 | £667/month |
| £12,000 | £2,000 | £10,000 | £833/month |
| £15,000 | £2,000 | £13,000 | £1,083/month |
| £18,000 | £2,000 | £16,000 | £1,333/month |
| £20,000 | £2,000 | £18,000 | £1,500/month |
| £24,000 | £2,000 | £22,000 | £1,833/month |
Top-up is capped at £2,000/year — reached when annual childcare cost reaches £8,000 (£8,000 × 25% = £2,000).
£25,000 salary — tax-free childcare savings
£30,000 salary — tax-free childcare savings
£35,000 salary — tax-free childcare savings
£40,000 salary — tax-free childcare savings
£45,000 salary — tax-free childcare savings
£50,000 salary — tax-free childcare savings
£60,000 salary — tax-free childcare savings
£70,000 salary — tax-free childcare savings
£80,000 salary — tax-free childcare savings
What is Tax-Free Childcare?
Tax-Free Childcare (TFC) is a government scheme that helps working parents pay for approved childcare. For every £8 you deposit into your TFC online account, the government adds £2 — effectively a 25% top-up. The maximum government contribution is £2,000 per year per child (or £4,000 for a disabled child).
To receive the full £2,000 top-up, you need to spend at least £8,000 per year on childcare for one child. If your costs are lower, you still receive 25% of whatever you pay — so a £5,000 annual bill becomes a £1,250 government contribution.
Who qualifies for Tax-Free Childcare in 2025-26?
Both parents (or a single parent) must be working and each must earn at least £2,167 in the current quarter (equivalent to the National Living Wage for 16 hours/week). Neither parent can earn more than £100,000 per year. Your child must be under 11, or under 17 if they are disabled.
You can use TFC for nurseries, childminders, holiday clubs, and after-school clubs — as long as they are registered with Ofsted (or the equivalent in Scotland, Wales, and Northern Ireland).
Frequently asked questions
How does tax-free childcare work?
For every £8 you pay into a Tax-Free Childcare online account, the government tops up by £2. This is a 25% boost on your childcare costs, capped at £2,000 per child per year (£4,000 for disabled children). You then pay your childcare provider directly from the account.
Who is eligible for tax-free childcare?
Both parents (or a single parent) must be working and earning at least £2,167/quarter in 2025-26. Neither parent can earn over £100,000/year. Your child must be under 11 (or under 17 if disabled). Self-employed parents also qualify.
Can I use tax-free childcare with salary sacrifice?
Tax-Free Childcare and employer childcare voucher schemes (salary sacrifice) cannot be used simultaneously for the same child. If you are already enrolled in a childcare voucher scheme from before October 2018, you may wish to compare both options — vouchers can sometimes offer greater savings for higher earners already in the scheme.