NZ In-Work Tax Credit (IWTC) Calculator 2026
In-Work Tax Credit (IWTC) is a Working for Families payment for low-to-middle income working families: NZ$72.50/week base + $15/week per child beyond 3rd. Requires 20 hours/week paid work (single) or 30 hours/week combined (couple). This calculator estimates eligibility and payment.
Working for Families Components
Family Tax Credit (FTC): paid per child, no work test. In-Work Tax Credit (IWTC): requires 20+ hours single / 30+ hours combined paid work — replaces former Independent Earner Tax Credit for families. Best Start Payment: $73/wk for newborns under 1 (universal); under 3 (income-tested). Minimum Family Tax Credit: ensures min income for working families.
Abatement Mechanics
Income above $42,700 reduces WfF payments by 27c per $1. Two-tier abatement: FTC and IWTC both reduce. Income includes most types: wages, self-employment net income, rental, partner income. Excludes child support paid to others.
Hours Test Specifics
Sole parent: 20 paid hours/week minimum. Couple: 30 paid hours/week combined (at least one parent). Self-employed: equivalent hours of net business activity. Hours below threshold = no IWTC even with low income.
Source: Inland Revenue Department (IRD) NZ Working for Families; ird.govt.nz. Last updated: May 2026.