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.
| Item | Per week | Per year |
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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.
Working for Families 2027 Payment Table by Income and Children
The figures below use the same 2027 rates and 27% abatement the calculator applies, for a working family that qualifies for the In-Work Tax Credit. Annual amounts are shown with the weekly equivalent in brackets. Best Start is excluded because it is not income-tested in a child's first year.
| Gross family income | 1 child | 2 children | 3 children |
|---|---|---|---|
| NZ$45,500 or less | $11,294 ($217/wk) | $17,425 ($335/wk) | $23,556 ($453/wk) |
| NZ$60,000 | $7,379 ($142/wk) | $13,510 ($260/wk) | $19,641 ($378/wk) |
| NZ$75,000 | $3,329 ($64/wk) | $9,460 ($182/wk) | $15,591 ($300/wk) |
| NZ$90,000 | Nil | $5,410 ($104/wk) | $11,541 ($222/wk) |
| NZ$110,000 | Nil | Nil (near cut-off) | $6,141 ($118/wk) |
At What Income Do Working for Families Payments Stop in 2027?
This is the number most families actually want and few sources state plainly. FTC and IWTC run out entirely once the 27-cent abatement has eaten the full entitlement: about NZ$87,300 of gross family income for one child, NZ$110,000 for two children, and NZ$132,700 for three. Each additional child pushes the cut-off up by roughly NZ$22,700 because the extra NZ$6,131 of FTC takes that much more income to abate away. Two things shift these lines: Best Start for a child under 1 is paid regardless of income in the first year, and Best Start for a 1-2 year old abates separately at 21 cents per dollar above NZ$79,000, so a family past the FTC cut-off can still receive Best Start. Rates and thresholds are set by Inland Revenue for the 1 April 2026 – 31 March 2027 tax year. Updated August 2026.
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 August 2026.