Working for Families Tax Credit (FTC + IWTC) Calculator 2027

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.