Tax-Free Childcare Saving Calculator 2025/26
Calculate your annual saving under Tax-Free Childcare — the government adds 20p for every 80p you deposit into your online childcare account, up to £500 per quarter per child. Enter your annual childcare spend and number of eligible children to see your total saving.
Key Inputs
- Annual childcare spend in £
- Number of eligible children (under 12, or under 17 if disabled)
- Current income: both parents must be working and earning at least £2,167 per quarter (equivalent to 16 hours at the National Living Wage)
What You'll Get
- Annual government top-up (20p per £0.80 spent, maximum £500/quarter = £2,000/year per child under 12)
- Maximum annual saving for disabled children (£4,000/year per child under 17)
- Total childcare account value including government top-up
- Eligibility confirmation based on income entered
Important Notes — 2025/26 Rates & Caveats
Tax-Free Childcare allows eligible parents to open an online childcare account through the government's Childcare Choices service. For every £8 deposited, the government adds £2 — a 25% uplift on contributions, or an effective 20% saving on childcare costs. The maximum government contribution is £500 per quarter (£2,000/year) per child under 12, or £1,000 per quarter (£4,000/year) for disabled children under 17. Both parents must be working and each earning at least £2,167 per quarter (equivalent to 16 hours per week at the National Living Wage — £12.21/hour × 16 × 13 weeks). Neither parent can earn over £100,000/year. You cannot use Tax-Free Childcare alongside Universal Credit childcare element or Tax Credits childcare element.
Frequently Asked Questions
Who qualifies for Tax-Free Childcare?
Both parents (or the sole parent in a single-parent family) must be working and each earning at least £2,167 per quarter — equivalent to 16 hours per week at the National Living Wage. Neither parent can earn over £100,000/year. Parents who are self-employed, on zero-hours contracts, or working irregular hours can qualify as long as they meet the quarterly earnings minimum. Parents receiving Universal Credit childcare support or Tax Credits childcare element are not eligible for Tax-Free Childcare.
Can I use Tax-Free Childcare for a nursery and a childminder?
Yes — Tax-Free Childcare can be used with any Ofsted-registered provider, including nurseries, childminders, after-school clubs, holiday clubs and nanny agencies. The provider must be registered to accept Tax-Free Childcare payments. You can split your account payments across multiple providers in the same quarter. Check the government's Childcare Choices website to confirm that your provider is registered.
How much is the maximum Tax-Free Childcare saving?
The maximum government top-up is £2,000 per year per child under 12 (£500/quarter). For disabled children under 17 the maximum is £4,000 per year (£1,000/quarter). There is no limit on the number of children who can benefit. For a family with two children under 12, the maximum combined saving is £4,000/year. The saving is based on childcare spend up to £10,000/year per child (government contributes 20% = £2,000 maximum).
Related Calculators
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