Tax & Income guide · New Zealand
Best Start Income Limit 2026/27: Threshold and Examples
See how the $79,000 Best Start income threshold works in 2026/27, which children are income-tested, the 21% reduction and practical NZ payment examples.
Key points
The Best Start income test in plain language
The $79,000 figure is a threshold, not an immediate cut-off.
The annual Best Start rate reduces by 21% of family income above the threshold.
Children born on or after 1 April 2026 are income-tested in all three years; earlier births keep an income-independent first year.
Family income combines both partners and required Working for Families adjustments, so it can differ from taxable salary.
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Best Start examples at different family incomes
These examples use one child born on 1 June 2026, so income testing applies from the first year. Regular instalments are rounded down.
| Check | Income above threshold | Annual reduction | Estimated annual rate | Weekly estimate |
|---|---|---|---|---|
| $79,000 | $0 | $0 | $4,041 | $77 a week |
| $83,500 | $4,500 | $945 | $3,096 | $59 a week |
| $90,000 | $11,000 | $2,310 | $1,731 | $33 a week |
| $100,000 | $21,000 | $4,410 | $0 | $0 a week |
The $79,000 figure is a threshold, not a cliff
When the income test applies, a family at or below $79,000 can receive the full Best Start rate before payment-timing and general eligibility checks. Earning one dollar more does not remove the whole payment; only income above the threshold enters the reduction.
The annual rate reduces gradually at 21%. At $83,500, for example, the excess is $4,500 and the reduction is $945, leaving $3,096 before regular-payment rounding.
How to calculate the income reduction
Subtract $79,000 from annual family income, but do not use a negative result. Multiply the excess by 21%, then subtract that reduction from the $4,041 full annual rate. Do not allow the answer to fall below zero.
A regular weekly or fortnightly instalment is then rounded down to a whole dollar. This means multiplying a displayed weekly figure by 52 may be slightly lower than the unrounded annual entitlement rate.
Calculate with your family incomeRead the complete Best Start guide
Check whether the income test applies to the child
For a child born on or after 1 April 2026, use the income test from the first year. For a child born earlier, do not apply it before the first birthday; begin applying it in the second year and continue until the third birthday.
The rule follows the child’s exact birth date. A family can therefore have one younger child whose payment is income-tested and an older pre-change child who is still inside an income-independent first year.
Use family income, not one person’s take-home pay
Working for Families family income generally starts with the applicant’s and partner’s income together. Inland Revenue can then add or subtract required adjustments, including some child-support amounts, income of a non-resident partner, certain company income and other specified payments.
Take-home pay is not the correct input because it has already removed PAYE and other deductions. Use the annual family-income estimate in myIR and update it when employment, business income, a relationship or another relevant circumstance changes.
Why actual payments can change after the estimate
Weekly and fortnightly payments are based on estimated family income for the tax year. Inland Revenue squares up the entitlement after 31 March using actual income and family circumstances. A lower estimate can produce an extra payment later; an income estimate that was too low can create an amount to repay.
The Best Start calculation is also only one part of Working for Families. Other credits, shared care, payment dates and agency records can change the combined amount deposited. Use the calculator to understand the Best Start component, not to reconstruct the entire notice of entitlement.
Frequently asked questions
What is the Best Start income limit for 2026/27?
The payment begins reducing when applicable family income exceeds $79,000. It is a reduction threshold rather than an immediate eligibility cut-off.
What is the Best Start reduction rate?
The annual Best Start entitlement reduces by 21% of family income above $79,000.
Can I receive Best Start above $79,000?
Yes. Income above the threshold gradually reduces the annual entitlement, so a partial amount can remain.
Does my partner’s income count?
Yes. Working for Families generally combines your income and your partner’s income and then applies any required family-income adjustments.
Is the first year always income tested now?
Only for children born on or after 1 April 2026. A child born before that date keeps an income-independent first year.
Why is the weekly amount lower than annual entitlement divided exactly?
Inland Revenue rounds regular instalments down to the nearest dollar, so the displayed weekly or fortnightly amount can be slightly lower than the precise annual rate.
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