Working for Families NZ 2026-27: Credits and Abatement
The four WFF tax credits
| Credit | Maximum amount | Who qualifies |
|---|---|---|
| Family Tax Credit (FTC) | $113.04/week per child | All principal caregivers with children under 18 |
| In-Work Tax Credit (IWTC) | $72.50/week | Working parents not on a main benefit (20+ hrs single, 30+ hrs couples) |
| Best Start Tax Credit | $3,459/year per child | Children under 3; income-tested above $79,000 |
| Minimum Family Tax Credit (MFTC) | Top-up to $34,216 net | Working families with children below the net income floor |
Family Tax Credit: abatement by family income (one child)
The FTC starts abating at $42,700 combined family income, reducing by 27% (27 cents) per extra dollar.
| Family income | FTC (1 child) | FTC per week | IWTC eligible |
|---|---|---|---|
| $30,000 | $5,878 | $113.04 | Yes |
| $40,000 | $5,878 | $113.04 | Yes |
| $50,000 | $3,907 | $75.13 | Yes |
| $60,000 | $1,207 | $23.21 | Yes |
| $70,000 | Nil | Nil | Phased out |
How to apply
Apply through myIR on the IRD website. You can receive payments weekly or fortnightly through the year (estimated entitlement) or as a lump sum at tax time. The square-up at year-end corrects any difference between estimated and actual entitlement.
The MFTC is only available as a lump sum after year-end, not as a payment during the year.
Frequently asked questions
Who is eligible for Working for Families in New Zealand?
Working for Families is available to employees, self-employed people and beneficiaries who are the principal caregiver of one or more dependent children under 18. Income thresholds and work-hour requirements vary by credit type. The In-Work Tax Credit requires at least 20 hours of paid work per week for single parents (30 hours combined for couples).
How does the WFF abatement work?
Once combined family income exceeds $42,700 per year, the Family Tax Credit reduces by 27 cents for every extra dollar earned. At around $64,000 for a single-child family the FTC reaches zero. IWTC abates separately and ends earlier for higher incomes.
What is the Best Start Tax Credit?
Best Start pays $3,459 per year for each child under 3. For families earning under $79,000 combined income it is not income-tested. Above $79,000 it abates at 21 cents per dollar until it reaches zero. It is administered by IRD and paid weekly or fortnightly.
Source: IRD Working for Families 2026-27 rates and thresholds. General information only. Last updated 2026-11-04.