Working for Families Calculator

Working for Families payments in 2026–27

Working for Families is a set of four tax credits for families with dependent children, and the family tax credit calculator above estimates three of them at the 2026–27 rates. The family tax credit (FTC) is $7,921 a year for the eldest child and $6,454 for each other child. The in-work tax credit (IWTC) is $7,670 a year for families with 1 to 3 children, plus $780 for each child after the third, if you earn income from paid work. Best Start is up to $4,041 a year for each child in their first 3 years. The fourth credit, the minimum family tax credit, is explained below.

The 2026–27 in-work tax credit is a temporary increase from $97 a week ($5,070 a year) to $147 a week. Inland Revenue says it may drop back to $97 if petrol falls below $3 a litre for four weeks, and it returns to $97 after 31 March 2027 in any case – worth bearing in mind when budgeting for next year.

How abatement works: a worked example

Family tax credit and in-work tax credit share one abatement: 27.5% of family income over $44,900, taken off FTC first and any remainder off IWTC. Take a working couple with 2 children and family income of $65,000. Full FTC is $14,375 and full IWTC is $7,670. The abatement is ($65,000 − $44,900) × 27.5% = $5,528, all of which comes off the FTC. They are entitled to about $8,848 FTC and $7,670 IWTC, $16,518 in total or $317 a week (Inland Revenue rounds weekly instalments down to the dollar).

Payments stop entirely once the abatement swallows both credits. For an in-work family that happens at about $101,595 with 1 child, $125,064 with 2 and $148,533 with 3.

Estimated entitlement by income and number of children (2026–27)

Full-year FTC plus IWTC for a working family with no children under 1, before rounding. Weekly figures are rounded down as Inland Revenue does.

Best Start for babies and toddlers

Best Start pays up to $77 a week ($4,041 a year) per child until their third birthday. For a child born on or after 1 April 2026, every year is income-tested: the payment reduces by 21% of family income over $79,000, separately from the FTC abatement, and stops at about $98,243. Children born before 1 April 2026 keep a first year that is not income-tested.

Example: a family earning $92,000 with a newborn and an older child gets Best Start of about $1,311 ($4,041 less 21% of $13,000), on top of $9,092 of FTC and IWTC. Best Start cannot be paid at the same time as paid parental leave; it starts when parental leave ends.

The minimum family tax credit

The minimum family tax credit (MFTC) tops up a working family's after-tax income to $36,604 a year ($703 a week). A sole parent must work at least 20 hours a week for salary or wages; in a two-parent family, the parents must work at least 30 hours between them. Self-employed income on its own does not qualify; you need salary or wages with tax deducted.

Inland Revenue's example: a sole parent earning $27,000 has $3,633 income tax, leaving $23,367; with $1,000 of child support, family income after tax is $24,367. The MFTC is $36,604 − $24,367 = $12,237 for the year, regardless of the number of children. The calculator does not include MFTC because it depends on hours worked and after-tax income.

Who can get Working for Families

You qualify if you are the principal caregiver of a dependent child and either you or the child meets the residency rules – only one of the two sets has to be met. Being in New Zealand unlawfully, or on only a temporary visa, rules you out.

• Dependent child: aged 15 or under, or 16–17 and financially dependent on you, or 18 and still at school or tertiary study and dependent; not working 30 hours a week or on a student allowance or benefit.
• The child must live with you for at least a third of any 4-month period.
• Your residency: a New Zealand resident and tax resident who has lived here for 12 months in a row at some point, and not a transitional resident – or the child is a resident and present in New Zealand.
• Main-benefit families get FTC and Best Start but not IWTC or MFTC; with income only from a benefit of $30,000, 2 children would get about $14,375 a year in FTC.

How to apply and what counts as family income

Register in myIR under "I want to…" then "Register for Working for Families", or use Inland Revenue's online registration tool if you do not have myIR. You need IRD numbers for you, your partner and the child (required for payments beyond 8 weeks), an estimate of family income for the tax year, any privately agreed child support, and your bank account. Through myIR the notice of entitlement arrives the next day; otherwise within 10 working days. New or returning residents with a temporary tax exemption on overseas income lose that exemption if they apply. Families whose only income is a benefit can choose to be paid through MSD (Work and Income) instead; once monthly family income goes over $3,741 before tax, or care is shared, Inland Revenue must pay.

Family income is your taxable income plus your partner's, adjusted: child support received is added and child support paid is subtracted, a child's passive income over $500 is added, and regular help with household bills over $5,000 a year must be declared on the Adjust your income (IR215) form. Missed out in earlier years? Once registered, you can claim for any tax year assessed in the last 4 years, and for older years that have never had an income tax assessment – in which case both partners file IR3 returns.

The end-of-year square-up

Weekly or fortnightly payments are based on your estimate, so after 31 March Inland Revenue recalculates your entitlement from actual family income and issues the result with your income tax assessment between late May and July. Underpayments are paid out (after clearing any tax owing); overpayments must be repaid by 7 February the following year, or 7 April with a tax agent's extension. Because the FTC/IWTC abatement is 27.5%, each $1,000 of income you under-estimate in the abatement range becomes about $275 to repay.

Two ways to avoid a bill: update your income estimate in myIR as soon as it changes, or choose to receive the whole entitlement as a lump sum after the year ends, which removes any risk of overpayment.