Working for Families Abatement Calculator

This Working for Families abatement calculator shows you how your family tax credits shrink as your family income climbs above the income threshold set by Inland Revenue. Working for Families is a package of payments that tops up the income of families raising children, and the main entitlement is reduced, or abated, once your combined family income passes the threshold of about $42,700 from the 2026 tax year. Above that point your full entitlement is cut by 27 cents for every extra dollar you earn, so a modest pay rise can claw back a meaningful slice of your credits. To use the tool, enter your total family income for the year and the base entitlement you would receive at or below the threshold, then read off your abated entitlement and the dollar amount of abatement applied. Families, sole parents and accountants use this to sanity check what Inland Revenue pays during the year and to forecast a square up at year end. A few good habits help. Keep your income estimate with Inland Revenue up to date so you are not overpaid and left with a bill, count all taxable income including PAYE wages, self employed profit and rental income, and remember that this is the abatement step only, not your full entitlement calculation. The actual base entitlement depends on the number and age of your children and which credits you qualify for, so treat the figure here as a clear guide to how income reduces what you keep, then confirm the detail with Inland Revenue before you rely on it.

Abatement = (family income - threshold) x 27%. Entitlement = base - abatement, floored at $0. Estimate only, not financial or tax advice.