Worked example
Single parent on $37,800
Two children aged 4 and under 1, 25 paid-work hours a week, salary or wages and no main benefit.
$583/week
- Family Tax Credit
- $276
- In-Work Tax Credit
- $147
- Minimum Family Tax Credit
- $83
- Best Start
- $77
New Zealand · 2026-27 estimate
Working for Families calculator NZ
Start with a quick estimate using four simple answers. If you may qualify for Minimum Family Tax Credit, open the optional detailed check for income splits and work hours.
Calculation year: 1 April 2026 to 31 March 2027
Current 2026/27 rate notice: IRD says the increased In-Work Tax Credit is temporary and may return to its earlier rate if the published petrol-price condition is met. Rates were last checked 12 October 2026.
Quick Working for Families estimate
Updates instantly$132/week
For combined annual family income of $100,000 and 2 dependent children.
Per week
$132
Per fortnight
$265
Per year
$6,892.5
Quick estimate includes FTC, IWTC and Best Start
Minimum Family Tax Credit needs your income split and work hours, so it is not included yet.
Your payment breakdown
Family Tax Credit
Not includedThe income abatement uses the full Family Tax Credit.
$0/week
In-Work Tax Credit
IncludedPaid work qualifies, but abatement left after Family Tax Credit reduces this payment.
$132/week
Minimum Family Tax Credit
Needs detailsOpen the optional detailed check to test your MFTC eligibility.
-/week
Best Start
Not includedNo child aged under 3 was entered.
$0/week
How income changed your estimate
Your family income is $55,100 above the $44,900 threshold, so Family Tax Credit and then In-Work Tax Credit are reduced by up to $15,152.50 for the year.
Best Start has its own income test: this estimate includes a separate annual reduction of $4,410.
Full Family Tax Credit rates
The eldest child uses the $7,921 annual rate. Each additional child uses the $6,454 annual rate, before income reduction.
Estimate only. Check your actual entitlement with IRD. Weekly and fortnightly instalments are rounded down, and IRD squares up the year using your actual circumstances.
Estimate only. Check your actual entitlement with IRD. Shared care, residency, principal-caregiver tests, exact Best Start dates and family-scheme income adjustments can change the result.
How Working for Families is calculated
The calculator first works out the full annual amount for each payment. It then applies the main income abatement to Family Tax Credit, carries any unused reduction to In-Work Tax Credit, calculates MFTC separately and applies Best Start’s separate income test.
- 1
Calculate Family Tax Credit
The eldest dependent child has a full-year rate of $7,921 and each subsequent child has $6,454. Current rates depend on child order, not an age band.
- 2
Apply the main abatement
Family income above $44,900 creates a 27.5% reduction. It comes off FTC first, then any remainder comes off IWTC.
- 3
Check work and MFTC rules
IWTC requires paid work but has no current minimum-hours test. MFTC separately requires 20 hours for a single parent or 30 combined hours for a couple.
- 4
Calculate Best Start separately
Each child entered as under 3 adds up to $4,041. The combined amount reduces by 21% of family income over $79,000.
Real calculation scenarios
Working for Families worked examples
These examples use the same calculation function as the live tool. Amounts are estimates for a full year and weekly instalments are rounded down.
Worked example
Two-earner couple on $100,000
Two children aged 9 and 6, each adult earns $50,000 and both are in paid work.
$132/week
- Family Tax Credit
- $0
- In-Work Tax Credit
- $132
- Minimum Family Tax Credit
- $0
- Best Start
- $0
Worked example
Couple with a baby on $83,500
One child aged under 1, combined family income of $83,500 and paid work without a main benefit.
$154/week
- Family Tax Credit
- $0
- In-Work Tax Credit
- $95
- Minimum Family Tax Credit
- $0
- Best Start
- $59
What family income means
Working for Families uses family-scheme income, which can include more than salary and wages. Use the annual amount held or expected by IRD where possible, including your partner and any required adjustments.
Why MFTC needs separate income entries
MFTC uses family income after income tax. For couples, tax is calculated for each person separately, so the form asks for each adult’s gross income instead of treating the couple as one taxpayer.
Best Start timing needs a date check
This combined calculator uses age bands for a whole-year estimate. A birth during the year, a third birthday or Paid Parental Leave can change payment dates. Use the dedicated Best Start calculator for that timing.
When to go directly to IRD
Use IRD’s calculator when care is shared, income needs family-scheme adjustments, a child’s dependency is uncertain, work changes during the year or another government payment applies.
Official Working for Families sources
Every rate, threshold, abatement percentage and hours rule is stored in lib/wff/rates.ts and was checked against current Inland Revenue material. Update that one file for a new tax year.
Inland Revenue — Family Tax CreditInland Revenue — In-Work Tax CreditInland Revenue — Minimum Family Tax CreditInland Revenue — Best StartInland Revenue — Working for Families weekly payments 2027Inland Revenue — government payments affecting WFF
Last checked 12 October 2026. This is general information, not tax or financial advice.
Working for Families calculator FAQs
How much Working for Families could I get in 2026/27?
It depends on your family income, dependent children, paid-work situation and the payment-specific rules. The quick estimate checks Family Tax Credit, In-Work Tax Credit and Best Start. Open the optional detailed check to include Minimum Family Tax Credit.
What income should I enter?
Use your estimated Working for Families family income for the full tax year before tax. This generally combines your income and your partner’s income, with family-scheme adjustments that can differ from a simple salary total.
Is there still an hours test for the In-Work Tax Credit?
No minimum-hours test has applied to the In-Work Tax Credit since July 2020. You must normally have income from paid work and meet the other rules. The 20-hour single-parent and 30-hour couple tests still apply to the Minimum Family Tax Credit.
Can I get Working for Families while receiving a main benefit?
You may qualify for Family Tax Credit and Best Start, but a main benefit prevents entitlement to the In-Work Tax Credit and Minimum Family Tax Credit.
Does this calculator include Best Start?
It estimates a whole-year Best Start rate for each child counted as under 3, including the separate income test. Use the dedicated Best Start calculator for birth dates, Paid Parental Leave and exact payment timing.
Can an 18-year-old count as a dependent child?
A child aged 18 or under can potentially be a dependent child, but age alone does not prove eligibility. Their financial dependence, care arrangements and other Working for Families requirements still matter.
Why might IRD calculate a different amount?
IRD uses your actual family-scheme income, eligibility dates, shared-care details, government payments and family circumstances. It also squares up the final entitlement after the tax year, so this planning estimate can differ.
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