Working for Families Tax Credit (FTC + IWTC) Calculator 2027
Calculate your Working for Families entitlement under the 2026-27 IRD rules — Family Tax Credit (FTC) base + per-child top-ups, In-Work Tax Credit (IWTC) of NZ$72.50/wk for working families, with abatement at 27 cents per dollar above NZ$42,700 family income.
The Working for Families calculator is a free, browser-based tool that estimates your weekly Family Tax Credit, In-Work Tax Credit and Best Start entitlement from family income, number of children and hours worked. It applies the abatement rate automatically, so you see the payment you would actually receive, not the maximum rate.
How Working for Families Builds Up
WfF combines several payments. The Family Tax Credit (FTC) pays a base rate for the first child and a lower per-child rate for each additional child. The In-Work Tax Credit (IWTC) adds NZ$72.50 weekly for working families — couples with one parent working 30+ hrs/wk or sole parents working 20+ hrs/wk. Higher-needs payments (Best Start, Minimum Family Tax Credit) layer on top for qualifying families.
The 27% Abatement Above $42,700
Above NZ$42,700 family income, the entitlement abates at 27 cents per dollar. A family earning NZ$75,000 with two children sees roughly NZ$8,700 abated from a gross WfF of around NZ$16,000 — leaving NZ$7,300 net. Families at NZ$110,000+ income usually see WfF fully abated except in households with 4+ children.
Best Start Payment for Newborns
Best Start pays NZ$73 weekly for every child under 1 with no income test, then continues to age 3 abated at 21 cents per dollar above NZ$79,000 income. Best Start sits separately from FTC/IWTC and is paid via MSD or IRD depending on parental leave status.
How to Claim and Stay Current
Apply through IRD via your myIR account — weekly or fortnightly payments are usual. You must update IRD within 1 month of income, partner, or child changes. Year-end square-up reconciles estimated vs actual income; overestimating income means you owe IRD, underestimating means a refund.
Sources: ird.govt.nz Working for Families 2026-27 rates. Last updated: May 2026.
Weekly Payments or an End-of-Year Lump Sum?
Inland Revenue lets you take Working for Families either as regular weekly or fortnightly payments during the year, or as a single lump sum after your income is finalised. The trade-off is real money. Weekly payments help with cashflow now, but they are based on an estimate of your family income — and if you earn more than you predicted (a pay rise, extra shifts, a partner returning to work), IRD recalculates at year end and you have to pay the overpayment back. This is the single most common reason families end up with a Working for Families debt. The lump-sum option removes that risk entirely because it is calculated on income you have already earned, but it gives you nothing during the year. A middle path that most people miss: keep the weekly payments and update your income estimate in myIR the moment your circumstances change, which resets future payments instead of building a debt. Re-run the calculator above with your new expected annual income after any pay change to see the corrected weekly figure. Full rules and the myIR update path are on the Inland Revenue Working for Families page. Updated 2026-08-23.
Frequently Asked Questions
What is the 2026-27 abatement threshold?
NZ$42,700 family income annually. The abatement rate is 27 cents per dollar above this threshold. Both figures are set in legislation and adjusted at annual review.
Do I qualify for IWTC if I am self-employed?
Yes — IWTC applies if you work the required hours (20/wk sole parent, 30/wk combined for couples) regardless of employment vs self-employment. You must declare hours honestly; IRD audits self-declared hours.
How is shared care handled?
WfF is split based on the number of nights each parent provides care. The threshold is 35-40% custody. Both parents can receive a proportional share of the entitlement if their shared care is registered with IRD.
Does child support affect WfF?
No. Child support payments and receipts do not affect WfF entitlement directly. WfF uses gross family income only.
Is this tool private?
Yes. All calculations run in your browser. Income, child counts, and work status are never sent, stored, or shared.
Should I take Working for Families weekly or as a lump sum?
Weekly payments help cashflow but are based on an estimate of your family income, so earning more than you predicted creates an overpayment you must repay at year end. The lump sum is calculated on income already earned, so there is no debt risk, but you get nothing during the year. If you take weekly payments, update your income estimate in myIR as soon as your pay changes.
What happens if my income goes up during the year?
Your entitlement abates as family income rises, so the payments you already received may be higher than you were entitled to. Inland Revenue squares this up after the tax year and bills the difference. Update your estimated income in myIR straight away and re-run this calculator with the new figure so your remaining payments are corrected before a debt builds.