NZ Working for Families Calculator 2026/27
This calculator works out your family's full Working for Families (WfF) entitlement for the 2026/27 year, covering the three main payments most families deal with: Family Tax Credit (FTC), In-Work Tax Credit (IWTC), and the Best Start payment for newborns. You enter the number of dependent children in your care, how many of those are babies under one (for Best Start), your combined family gross annual income from all sources, and whether you meet the IWTC work-hours test (20 hours a week for a single parent, or 30 hours combined for a couple). From there it works out your FTC and IWTC before abatement, applies the 27.5 percent reduction that cuts combined FTC and IWTC by 27.5 cents for every dollar your family income sits above $44,900, adds any Best Start payment for newborns, and totals everything into an annual figure alongside weekly and fortnightly equivalents. Use it to see roughly where your family sits on the abatement curve and how much income has eaten into your entitlement, and to sense-check what IRD pays you through myIR. It doesn't cover the Minimum Family Tax Credit top-up for low-income working families, which IRD works out separately, and it doesn't account for mid-year income changes or shared-care arrangements. Treat the result as an indicative guide to your entitlement, not a final figure - always confirm your actual payments with IRD.
Family details
Income & work hours
The four WfF components
Family Tax Credit (FTC)
Paid to any principal caregiver of dependent children, working or not. $152/week eldest child, $124/week each subsequent child. Annual: $7,921 eldest child, $6,454 each additional. Available to all families (including beneficiaries) but abates with income.
In-Work Tax Credit (IWTC)
Paid to working families: temporarily $147.50/week per family from 1 April 2026 to 31 March 2027 (up $50; then back to $97.50, or sooner if petrol stays below $3 a litre for four weeks). Requires 20 hrs/week single parent or 30 hrs/week combined for a couple. NOT available to beneficiaries. The credit is per family, not per child.
Best Start Payment
$4,041/year (about $77/week) per newborn. For babies born on or after 1 April 2026 it abates with income from the first year (21c per $ above $79,000); earlier births had the first year paid in full. Best Start continues to age 3. Cannot receive Best Start AND Paid Parental Leave for the same baby in the same period.
Minimum Family Tax Credit (MFTC)
A top-up that ensures working families on low income receive at least $36,604 net per year (about $703 a week after tax). Only relevant for families just above benefit levels who would otherwise be worse off working. Not included in this calculator's main flow but check IRD if your situation may qualify.
The 27.5% abatement
FTC and IWTC are abated together at 27.5 cents per dollar above $44,900 family income. So a family with $60,000 income loses ($60,000 - $44,900) × 0.275 = $4,152.50 from their combined FTC + IWTC entitlement.
Working for Families vs IETC
You cannot receive both WfF Tax Credits AND the Independent Earner Tax Credit (IETC). If you currently use the ME tax code (which gives IETC), you must switch to M when you start receiving WfF. Many families inadvertently double-claim and end up with year-end tax bills.
Sources
- IRD - Working for Families
- IR271 Working for Families weekly payments 2026/27 (PDF)
- IRD - Types of WfF payments
Related calculators
- PAYE Calculator - income tax calculation
- Take Home Pay Calculator - net family income
- Tax Code Picker - M vs ME (cannot use ME with WfF)
- Family Budget Calculator