NZ Working for Families Tax Credit 2027 Calculator

Working for Families (WFF) is New Zealand's main family payment combining four credits: Family Tax Credit (per child), In-Work Tax Credit (working 20+ hours single / 30+ hours couple), Best Start (NZD 73/week per child under 3), and Minimum Family Tax Credit (top-up for very low-income working families). Above NZD 43,200/year, entitlement is abated 27 cents per dollar of additional income. Best Start has a separate abatement starting at NZD 85,000.

FTC + IWTC + Best Start Breakdown

Family Tax Credit (FTC): paid per child under 18 (or 19 if still in school). 2027 weekly rates approximately NZD 144 first child, NZD 117 subsequent. In-Work Tax Credit (IWTC): NZD 97.50/week (single + 3 kids), plus NZD 15/week per additional child. Requires working at least 20 hr/wk single or 30 hr/wk combined for couple. NOT available if receiving main benefit. Best Start: NZD 73/week per child under 3. Year 1 (under 1) is universal. Year 2-3 is income-tested with own abatement above NZD 85k. MFTC (Minimum Family Tax Credit): tops up income to NZD 35,316/year (after tax) for working families. Mutually exclusive with main benefit.

Why Working for Families Often Ends in a Year-End Bill

Weekly Working for Families payments are an advance against an entitlement that is only finalised after the tax year closes. Inland Revenue pays you during the year on your own estimate of family income, then squares it up against your actual income once employment and IRD income information is in. Estimate low — a pay rise, extra shifts, a bonus, a partner returning to work — and the overpaid weeks come back as a debt you have to repay. Estimate high and you are underpaid all year and refunded in one lump. The safest habit is to update your income estimate in myIR the same week your circumstances change rather than at year end. Inland Revenue explains the square-up and how to update an estimate at ird.govt.nz.

Abatement and Application

Standard abatement: 27 cents per dollar of family income above NZD 43,200. Applies to FTC + IWTC + MFTC combined. Best Start has its own separate abatement: 12.5 cents per dollar above NZD 85,000 (so middle-income families still keep Best Start while losing FTC). Apply via MyIR — IRD calculates entitlement and pays directly to nominated bank account. Choose weekly, fortnightly, or end-of-year lump sum. Family Boost (separate 2024 credit) refunds 25% of childcare costs up to NZD 75/week per child — claim quarterly via IRD if you pay early childhood fees. Re-check entitlement annually as income changes.

Last updated September 2026. Sources: Inland Revenue NZ, MSD.