Working for Families FTC + IWTC 2027 Calculator (NZ)

Calculate your Family Tax Credit (FTC) and In-Work Tax Credit (IWTC) payments for the 2027 tax year. Per-child rates, abatement thresholds (NZ$45,500), weekly and annual amounts. Free, private, no sign-up.

Total Working for Families (per week)
NZ$0
Combined FTC + IWTC + Best Start
Family Tax Credit
—
Per week
In-Work Tax Credit
—
Per week
Best Start
—
Per week
Item Per week Per year
Note: This is a simplified estimate using IRD 2027 published rates. Actual payment depends on accurate income forecasting, custody share, and whether you receive a benefit. Always verify with IRD via your MyIR account. Income over NZ$45,500/year reduces FTC and IWTC by 27 cents per dollar.
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What is Working for Families (WFF)?

Working for Families is New Zealand's main income-support package for families with dependent children. Administered by Inland Revenue (IRD), it has four parts: Family Tax Credit (FTC) — the base payment per child; In-Work Tax Credit (IWTC) — a bonus for working families; Best Start — NZ$73 per week per child under 1; and the Minimum Family Tax Credit — a top-up to guarantee a minimum weekly income. For the 2027 tax year (April 2026 – March 2027), FTC for the eldest child is NZ$7,524 per year, and subsequent children NZ$6,131 per year.

How abatement works in 2027

Working for Families abates as family income rises. The 2027 threshold is NZ$45,500 of gross family income. Above this, FTC and IWTC reduce by 27 cents per dollar of extra income. For example, a family earning NZ$75,000 with 2 children loses 27% of NZ$29,500 = NZ$7,965 from their total FTC + IWTC. The IWTC abates last — meaning FTC is reduced first, then IWTC, then Best Start (Best Start abates at 21 cents per dollar above NZ$79,000 once the youngest child turns 1).

Most families choose weekly payments via direct credit, but you can also take an end-of-year lump sum. Weekly payments are calculated on your estimated income — at year end IRD reconciles against actual income, creating either a refund or a tax debt to repay.

Example: 2-child family on NZ$75,000

A 2-child working family (both parents employed, 40+ combined hours) on NZ$75,000 receives: FTC base = NZ$7,524 + NZ$6,131 = NZ$13,655 per year. IWTC = NZ$72.50 × 52 weeks = NZ$3,770 per year. Combined = NZ$17,425. Abatement = (NZ$75,000 − NZ$45,500) × 27% = NZ$7,965. Net WFF = NZ$9,460 per year or NZ$182 per week.

If the same family added a baby under 1, Best Start adds NZ$3,838 per year (NZ$73.84 × 52). Best Start has no income test in the first year — every family with a baby gets it regardless of income.

How to use this calculator

Enter your gross family income (combined salary before tax, plus interest, dividends, rental income, self-employment). Choose number of children and whether you work 20+ hours per week (singles) or 20+ combined (couples). Indicate if you have a Best Start child under 1. The calculator returns weekly and annual estimates for each WFF component.

Source: ird.govt.nz — Working for Families Tax Credits 2027 rates. Updated May 2026.

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