Working for Families Calculator
Estimate your Working for Families tax credits — Family Tax Credit, In-Work Tax Credit, and Best Start.
About Working for Families
Working for Families (WfF) provides tax credits to New Zealand families with dependent children. The amount depends on your family income, number of children, and whether you meet work-hour requirements.
The Family Tax Credit (FTC) is the main component — $152.33/week for the eldest child and $124.12/week for each subsequent child from 1 April 2026 (was $144.69 / $117.88 in 2025-26).
The In-Work Tax Credit (IWTC) is temporarily boosted by $50/week to $147.50/week for 2026-27 only (was $97.50). Eligible families need at least one parent in paid work and no main benefit from Work and Income. Families with 4+ children get an extra $15/week per additional child.
Best Start pays $77.71/week (was $73.81) for the first year. From 1 April 2026 Best Start year-1 becomes income-tested at $79,000 / 21% (previously universal); years 2-3 are income-tested at the same threshold.
For the 2026-27 year (from 1 April 2026) payments reduce by 27.5 cents per dollar for family income above $44,900. For 2025-26 and prior, the threshold was $42,700 and the rate was 27 cents per dollar. See the Budget 2026 summary for full context.
WfF Rates Table 2026-27
Maximum FTC + IWTC by family size for a working family with no abatement (family income at or below $44,900). IWTC requires the work-test hours; the extra $15/wk applies from the 4th child.
| Children | FTC/wk | IWTC/wk | Combined/wk | Combined/yr |
|---|---|---|---|---|
| 1 | $152.33 | $147.50 | $299.83 | $15,591 |
| 2 | $276.45 | $147.50 | $423.95 | $22,045 |
| 3 | $400.57 | $147.50 | $548.07 | $28,500 |
| 4 | $524.69 | $162.50 | $687.19 | $35,734 |
Entitlement after abatement for a 2-child working family (FTC + IWTC only, no Best Start), 2026-27 rates. IWTC abates only once FTC is fully absorbed.
| Family income | Abatement/yr | Entitlement/wk | Entitlement/yr |
|---|---|---|---|
| $44,900 | $0 | $423.95 | $22,045 |
| $60,000 | $4,153 | $344.09 | $17,893 |
| $80,000 | $9,653 | $238.33 | $12,393 |
| $100,000 | $15,153 | $132.56 | $6,893 |
| $125,065 (cut-out) | $22,045 | $0.00 | $0 |
Best Start tax credit, 2026-27. Paid per child on top of FTC and IWTC, and abated separately from them — Best Start comes off at 21c per dollar of family income above $79,000, not against the $44,900 WfF threshold used in the tables above.
| Child's age | Max/wk | Max/yr | Income test |
|---|---|---|---|
| Under 1 | $77.71 | $4,041 | Income-tested from birth for children born on or after 1 April 2026 |
| Aged 1 | $77.71 | $4,041 | Income-tested |
| Aged 2 | $77.71 | $4,041 | Income-tested; stops on the 3rd birthday |
A full-rate Best Start child is worth $4,041 a year. At 21c in the dollar it is fully abated once family income reaches about $98,242. IRD publishes the precise annual entitlement and rounds the weekly instalment down to the whole dollar, so its own pages quote $77 a week where the exact rate is $77.71.
Minimum family tax credit (MFTC), 2026-27. Not a rate but a floor: it tops a working family's after-tax income up to a guaranteed minimum, and it only applies if nobody in the family receives a main benefit and the work-hours test is met.
| Item | 2026-27 |
|---|---|
| Guaranteed after-tax income | $36,604/yr |
| Same figure weekly | $703/wk |
| Work hours — single parent | 20+ hrs/wk |
| Work hours — couple (combined) | 30+ hrs/wk |
MFTC pays the gap between your actual after-tax income and $36,604, so it is worth nothing once you are already above that line — which is why it does not appear in the abatement table above.
Worked example — 2 children, $60,000 family income, working couple
2026-27 rates, both children over age 3 (no Best Start), work-test hours met, no main benefit.
Frequently asked questions
Who can get Working for Families?
You must be the principal caregiver of a dependent child aged 18 or under, be a NZ tax resident, and have family income below the level where entitlements are fully abated.
What is the abatement threshold?
From 1 April 2026 (the 2026-27 year), Working for Families payments reduce by 27.5 cents for every dollar of family income above $44,900 (Budget 2025 RIS, confirmed Budget 2026). For 2025-26 and prior years, the threshold was $42,700 and the rate was 27 cents per dollar. A family with higher income and fewer children may receive reduced or zero payments.
What changed with the IWTC for 2026-27?
The In-Work Tax Credit base rate was temporarily boosted by $50/week — from $97.50 to $147.50/week — for 2026-27 only. It was announced 24 March 2026 and enacted 30 March 2026, eight weeks before Budget 2026 — not a Budget 2026 measure, though its cost was charged against the Budget's operating allowance. The boost runs for one year OR until 91-octane petrol drops below $3/L for four consecutive weeks, whichever comes first. From 1 April 2027 the rate reverts to $97.50/week unless legislation is renewed. Around 143,000 families receive the full $50/week and a further 14,000 become newly eligible at abated amounts.
Can I get both Working for Families and the IETC?
No. The Independent Earner Tax Credit (IETC) and Working for Families are mutually exclusive. Families with children generally receive more from WfF.
How do I apply?
Register through myIR (my.ird.govt.nz). You can choose to receive payments weekly, fortnightly, or as a lump sum at the end of the tax year.
What is Best Start?
Best Start provides $77.71/week (was $73.81 pre-Budget) for children born on or after 1 July 2018, paid for the first three years. From 1 April 2026 the first year is income-tested at $79,000 / 21% (previously universal); years two and three are also income-tested at the same threshold. The change applies to babies born on or after 1 April 2026.
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Sources
Rates sourced from IRD — Working for Families and IRD — WfF rates.
Last updated July 2026 (post-Budget). Rates sourced from IRD.
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