NZ Working for Families Tax Credits 2026/27

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 Calculator

Family 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	$147.50	$7,670
4th child	+$15.00	+$780
5th child	+$15.00	+$780
Each additional child beyond 5	+$15.00	+$780 each

The $147.50 weekly rate is a temporary increase that applies from 1 April 2026. It is scheduled to revert to $97.50 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 25% of eligible early childhood education (ECE) fees. Introduced 1 July 2024.

Item	Amount
Reimbursement rate	25% of eligible ECE fees
Maximum per fortnight	$150
Maximum per quarter	$975
Eligibility	Families with household income under $180,000
Abatement starts	Income over $140,000