NZ Working for Families Calculator 2026 β FTC, IWTC, Best Start
Calculate your 2026 New Zealand Working for Families entitlement. Family Tax Credit NZ$7,453/child, In-Work Tax Credit, Best Start NZ$73/week. Abatement from NZ$42,700.
NZ$
Combined wages, salary and self-employment income FTC: NZ$7,453/child
FTC: NZ$5,420/child
NZ$73/week per child (NZ$3,796/year). First year: no income test.
Common incomes:
NZ$0
Total WFF Entitlement/Year
NZ$0
Family Tax Credit (FTC)
NZ$0
In-Work Tax Credit (IWTC)
NZ$0
Best Start
NZ$0
Weekly WFF Payment
NZ$0
Abatement Applied
WFF Calculation Breakdown
How Working for Families Is Calculated
WFF entitlement is calculated in three steps: (1) calculate the maximum entitlement based on your children's ages and employment status, (2) apply the abatement based on income above $42,700, and (3) the result is your net annual entitlement. Inland Revenue pays this either weekly/fortnightly through the year (Automatic Calculation) or as a lump sum when you file your tax return.
The Formula
FTC = (children 0β15 Γ NZ$7,453) + (children 16β18 Γ NZ$5,420)
IWTC = NZ$3,770 + (max(0, total children β 3) Γ NZ$780) [if employed]
Best Start = children under 1 Γ NZ$3,796 (no income test in year 1)
Best Start (year 2+) = abated from NZ$79,000 at 27 cents/dollar
Abatement = max(0, family income β NZ$42,700) Γ 22.5%
Total WFF = max(0, FTC + IWTC + Best Start β Abatement)
IWTC = NZ$3,770 + (max(0, total children β 3) Γ NZ$780) [if employed]
Best Start = children under 1 Γ NZ$3,796 (no income test in year 1)
Best Start (year 2+) = abated from NZ$79,000 at 27 cents/dollar
Abatement = max(0, family income β NZ$42,700) Γ 22.5%
Total WFF = max(0, FTC + IWTC + Best Start β Abatement)
Example
The Wilson family: couple, 2 children (ages 5 and 8), combined income NZ$65,000, both working 30+ hours:
FTC: 2 Γ NZ$7,453 = NZ$14,906
IWTC: NZ$3,770 (1β3 children)
Total before abatement: NZ$18,676
Abatement: (NZ$65,000 β NZ$42,700) Γ 22.5% = NZ$22,300 Γ 22.5% = NZ$5,018
Net WFF: NZ$18,676 β NZ$5,018 = NZ$13,658/year (NZ$263/week)
FTC: 2 Γ NZ$7,453 = NZ$14,906
IWTC: NZ$3,770 (1β3 children)
Total before abatement: NZ$18,676
Abatement: (NZ$65,000 β NZ$42,700) Γ 22.5% = NZ$22,300 Γ 22.5% = NZ$5,018
Net WFF: NZ$18,676 β NZ$5,018 = NZ$13,658/year (NZ$263/week)
Extended
WFF at Different Income Levels
See how your Working for Families entitlement changes at NZ$40K through NZ$120K family income
WFF entitlement at different income levels using your current family settings.
| Family Income | FTC | IWTC | Best Start | Abatement | Total WFF | Weekly |
|---|
What each WFF component is worth before abatement at your family composition.
| Component | Rate | Your Entitlement | Abatement Threshold | Notes |
|---|
Frequently Asked Questions
What is Working for Families (WFF) in New Zealand?
Working for Families is a package of tax credits for families with dependent children in New Zealand. It includes the Family Tax Credit (FTC), In-Work Tax Credit (IWTC), Best Start Tax Credit, and Minimum Family Tax Credit (MFTC). The payments are made by Inland Revenue (IR) either as weekly/fortnightly payments during the year (if you estimate your income) or as a lump sum after you file your tax return. WFF is income-tested and abates as family income rises above $42,700.
How is Working for Families abated?
WFF payments reduce (abate) as your family income rises. The abatement starts at $42,700 of family income. For every dollar of income above $42,700, your WFF reduces by 22.5 cents. Some payments β including Best Start above $79,000 β have a higher abatement rate of 27 cents per dollar. Once combined WFF drops to zero, you no longer receive any payments. At around $120,000β$140,000 family income (depending on number of children), most families receive nothing.
What is the Family Tax Credit for 2026?
The Family Tax Credit (FTC) for 2025/26 is NZ$7,453 per year for each dependent child aged 0β15, and NZ$5,420 per year for each dependent child aged 16β18 who is enrolled in full-time secondary education. FTC is the main WFF payment and is available to families whether or not they are employed (unlike IWTC, which requires employment hours). It abates from $42,700 at 22.5 cents per dollar above that threshold.
What is the In-Work Tax Credit?
The In-Work Tax Credit (IWTC) is an additional payment for families where at least one parent works minimum hours: 20 hours/week for single parents, or 30 hours/week combined for couples. The IWTC is NZ$3,770/year for families with 1β3 children, plus NZ$780 per additional child (4th child onward). The IWTC is not available to families receiving an income-tested benefit like Jobseeker Support or Sole Parent Support, even if they meet the hours requirement.
What is Best Start and who qualifies?
Best Start is a payment of NZ$73 per week (NZ$3,796/year) for the first year of a child's life, available to all families regardless of income. From the child's first birthday, Best Start abates for families earning above $79,000 at 27 cents per dollar. Best Start is available per child, so families with multiple young children under 1 can receive it for each child simultaneously. It is paid in addition to FTC and IWTC. For newborns, Best Start automatically pays for the first year without income testing.