NZ Working for Families Calculator 2026/27

Related: Working for Families rates and thresholds the FTC, IWTC, MFTC and Best Start figures this calculator uses.
Quick answer Working for Families pays a set amount per child that abates as family income rises past the threshold. Enter your children's ages and household income and this works the abatement through for you; the answer is per fortnight and per year.

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 under three (for Best Start), your combined family gross annual income from all sources, and whether the In-Work Tax Credit applies, which needs some income from paid work and no income-tested benefit. There has been no hours test since 1 July 2020. 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 Best Start for each child under three and abates it by 21 cents in the dollar above $79,000, 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.

Updated  Uses 1 April 2026 WfF rates including IWTC $50 boost.
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Family details

children
Children under 18 (or 18-19 if still in school) for whom you are the principal caregiver.
children
Best Start runs until a child's third birthday, not the first. Already counted in total children above. You cannot receive Best Start and Paid Parental Leave for the same baby in the same period.
children
A child born before 1 April 2026 has an income-test-free first year, so Best Start is paid in full for them whatever the family earns. Leave at zero if none apply.

Income and eligibility

$
Add both partners' gross income from all sources: salary, wages, business income, rental, taxable benefits.
There is no hours test. IRD removed the old 20 hours (sole parent) and 30 hours (couple) requirement on 1 July 2020. Any paid work counts, so part-time hours still qualify. It is not available to families receiving an income-tested benefit (Jobseeker, Sole Parent Support and the like), a student allowance or NZ Super.

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/week per family from 1 April 2026 to 31 March 2027 (up $50; then back to $97, or sooner if petrol stays below $3 a litre for four weeks). Requires some income from paid work each week and no main benefit. There has been NO hours test since 1 July 2020, when IRD removed the old 20 hours (sole parent) and 30 hours (couple) requirement, so part-time work qualifies. The credit is per family, not per child.

Best Start Payment

$4,041/year (about $77/week) per child under three. For babies born on or after 1 April 2026 it abates with income from the first year (21c per $ above $79,000); a child born earlier has an income-test-free first year. Best Start continues until the third birthday, so a two year old still counts. 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

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Frequently asked questions

What is Working for Families?

Working for Families (WfF) is a package of tax credits for families with dependent children. It has four main components: Family Tax Credit (FTC) for any caregiver, In-Work Tax Credit (IWTC) for working families, Best Start for newborns, and the Minimum Family Tax Credit (MFTC) which tops up low working incomes. Payments abate (reduce) by 27.5 cents per dollar of family income above $44,900.

How much is the Family Tax Credit?

FTC for the 2026/27 year is $152 per week for the eldest dependent child, plus $124 per week for each subsequent child. Annual amounts: $7,921 for the eldest child, $6,454 for each additional child. The credit is for any principal caregiver (working or not), and it abates with family income.

How much is the In-Work Tax Credit?

From 1 April 2026 the IWTC is temporarily $147 per week per family ($7,670 a year), an increase of $50 a week. After 31 March 2027 it returns to $97 a week ($5,070 a year), or sooner if petrol stays below $3 a litre for four weeks. To qualify you need some income from paid work each week and must not be receiving an income-tested benefit or student allowance. There is no hours test: IRD removed the old 20 hours (sole parent) and 30 hours (couple) requirement on 1 July 2020. The credit is per family not per child. IWTC abates with family income above $44,900 alongside FTC.

What is Best Start?

Best Start is $4,041 a year (about $77 a week) per newborn. For a child born on or after 1 April 2026 it abates with family income (21 cents per dollar above $79,000) from the first year; for children born earlier the first year was paid in full regardless of income, with abatement from the second year. Best Start stops at age 3. It is only available if the family doesn't receive Paid Parental Leave for the same child.

How does WfF abatement work?

Family Tax Credit and In-Work Tax Credit are both abated together. For every dollar of family income above $44,900, the combined FTC + IWTC reduces by 27.5 cents. Family income is the combined annual income of both partners (employee earnings, business income, rental income, etc.). High-income families lose entitlement entirely. Best Start has its own separate abatement starting at $79,000 family income (21c per dollar); for children born on or after 1 April 2026 this applies from the first year.