NZ Working for Families Tax Credit Calculator 2026

Four WFF Components 2026

Family Tax Credit (FTC): NZ$5,604/yr for first child (paid weekly NZ$107.78). Subsequent child NZ$4,567/yr. Newborn (under 1): NZ$6,066. Abates 27c per $1 above income $42,700. In-Work Tax Credit (IWTC): NZ$3,770 first child + NZ$780 each subsequent. Available only if family meets minimum work hours. Best Start Tax Credit (BSTC): NZ$73/week for child under 1; partial for ages 1-3 (income-tested). Minimum Family Tax Credit (MFTC): top-up to ensure working family gets minimum income NZ$704/week after tax.

Work Hour Tests

IWTC requires: (a) sole parent working 20+ hours/week. (b) Couple: combined 30+ hours/week. (c) Job-seeker benefits don't qualify. (d) Self-employed counted on basis of income x hours estimate. Failure to meet hours = no IWTC for that period. Reassessed when work hours change. Reporting via myIR or your tax return.

Income Abatement

FTC + IWTC combined abates 27c per dollar of family income above NZ$42,700/year. So at $80,000 income: abatement = ($80,000 − $42,700) × 0.27 = $10,071. Annual entitlement minus this amount = actual receivable. Above ~$100,000-110,000 family income (depending on number of kids), FTC + IWTC reduce to zero. BSTC has separate income threshold.

Application

Apply via myIR (Inland Revenue online). Required: family details, all dependent children's birth certificates, partner's IRD number, current household income estimate. Payments arrive weekly into bank account. Reconciled annually after tax-year end (March 31) — overpayment recoverable, underpayment refunded. Estimate income carefully — overpayments cause debt to IRD.

Sources: Inland Revenue Department NZ Working for Families, Income Tax Act 2007, Budget 2024 changes. Last updated: May 2026.