Reference
NZ Working for Families Tax Credits 2026/27
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Working for Families (WFF) is a package of four tax credits administered by Inland Revenue: the Family Tax Credit (FTC), In-Work Tax Credit (IWTC), Best Start, and Minimum Family Tax Credit (MFTC). All rates shown below are for the 2026/27 year (from 1 April 2026).
WFF Calculator PAYE CalculatorFamily Tax Credit (FTC)
The FTC is paid for each dependent child under 18 in your care. It is income-tested and abates as family income rises above $44,900.
| Child | Annual Rate | Weekly Rate |
|---|---|---|
| Eldest child (all ages to 18) | $7,921 | $152.33 |
| Subsequent children (all ages to 18) | $6,454 | $124.12 |
In-Work Tax Credit (IWTC)
The IWTC is for working families not receiving a main benefit. Eligibility requires working at least 20 hours per week (single parent) or 30 hours combined (couple).
| Number of Children | Weekly Rate | Annual Maximum |
|---|---|---|
| 1 to 3 children | $147 | $7,670 |
| 4th child | +$15.00 | +$780 |
| 5th child | +$15.00 | +$780 |
| Each additional child beyond 5 | +$15.00 | +$780 each |
The $147 weekly rate is a temporary increase that applies from 1 April 2026. It is scheduled to revert to $97 a week after 31 March 2027, or earlier if the average petrol price stays below $3.00 a litre for four consecutive weeks.
Best Start Tax Credit
Best Start is paid for each child under 3. For babies born before 1 April 2026 the first-year payment is universal (not income-tested) and the 1 to 3 payment is income-tested. For babies born on or after 1 April 2026 the payment is income-tested from the first year.
| Child's Age | Weekly Rate | Annual Rate | Income-tested? |
|---|---|---|---|
| Under 1 year (born before 1 Apr 2026) | $77.71 | $4,041 | No (universal) |
| Under 1 year (born on/after 1 Apr 2026) | $77.71 | $4,041 | Yes (abates over $79,000) |
| 1 to 3 years | $77.71 | $4,041 | Yes (abates over $79,000) |
Minimum Family Tax Credit (MFTC)
The MFTC tops up the after-tax income of working families with children to a guaranteed minimum amount. Applies only to families not on a main benefit.
| Item | 2026/27 Amount |
|---|---|
| Guaranteed minimum weekly net income | $703 |
| Annual equivalent (after tax) | $36,604 |
Abatement (Income Testing)
WFF payments reduce as family income rises above the abatement threshold.
| Item | Amount |
|---|---|
| Abatement threshold (family income) | $44,900 |
| Abatement rate | 27.5 cents per dollar over $44,900 |
| Payments affected | FTC, IWTC, Best Start (1-3 only) |
| Not affected by abatement | Best Start under 1 |
Worked Examples
| Family Situation | Family Income | Weekly WFF Payment (approx) |
|---|---|---|
| Single parent, 1 child age 2, working 25 hrs/week | $40,000 | $290/week (FTC + IWTC + Best Start) |
| Couple, 2 children (ages 4 and 7), both working | $80,000 | $205/week (FTC + IWTC, abated) |
| Couple, 3 children (ages 2, 5, 8), both working | $100,000 | $185/week (FTC + IWTC + Best Start 1-3, abated) |
| Couple, 1 child age 1, sole earner | $60,000 | $230/week (FTC + IWTC + Best Start under 1) |
| Couple, 2 children, both working | $160,000 | $0 (fully abated out) |
Examples are indicative only. Use the WFF Calculator for precise entitlement.
FamilyBoost (ECE Tax Credit)
FamilyBoost is a separate payment (not strictly WFF) that reimburses part of your eligible early childhood education (ECE) fees. It was introduced on 1 July 2024 at 25% of fees with a $975 quarterly cap. Those settings were lifted for quarters starting on or after 1 July 2025: the rate is now up to 40% of fees and the cap is $1,560 a quarter. The figures below are the current settings and apply for 2026/27.
| Item | Amount |
|---|---|
| Reimbursement rate | Up to 40% of eligible ECE fees |
| Maximum per quarter | $1,560 |
| Weekly equivalent at the cap | $120 (a 13 week quarter) |
| Full entitlement | Household income under $35,000 per quarter (about $140,000 a year) |
| Abatement | 7 cents for every dollar of quarterly household income over $35,000 |
| Cuts out at | Household income of $57,286 per quarter (about $229,144 a year) |
FamilyBoost is claimed quarterly through myIR once the quarter has ended, using the invoices from your ECE provider. It is assessed on your household income for that quarter, not on an annual figure.