How much is Working for Families in 2026/27?

The family tax credit pays $7,921 a year ($152.33 a week) for the eldest child and $6,454 ($124.12) for each subsequent child. The in-work tax credit pays $147 a week for 1-3 children, and Best Start pays $77 a week ($4,041 a year) for children under 3.

At what income does Working for Families stop?

Family tax credit and Best Start abate once family income passes $44,900, by 27.5 cents per dollar. Best Start stops at $79,000 for children born on or after 1 April 2026. The in-work tax credit requires 20 hours a week for a single parent and 30 hours combined for a couple, and is not available while a main benefit is paid.

Do I need to reapply for Working for Families each year?

No, but you should update your income estimate in myIR whenever your situation changes. Underestimating income means IRD overpays during the year and you may have to repay it; overestimating produces a lump sum after the year ends.

Working for Families Tax Credits

Updated for 2026 IRD rates

What is Working for Families?

Working for Families (WfF) is a package of tax credits designed to help New Zealand families with dependent children. It is administered by Inland Revenue and provides financial support to low and middle-income families. The credits are typically paid as weekly or fortnightly instalments, or as a lump sum at the end of the tax year.

Components of Working for Families

There are four main components of Working for Families:

Family Tax Credit

The family tax credit is the core payment for families with dependent children aged 18 or under. For the 2026 tax year:

Eldest child: Up to $144.00 per week
Subsequent children: Up to $117.00 per week each

This amount is reduced by 27¢ for every dollar of family income above the abatement threshold ($42,700 for a one-child family in 2026, adjusted for more children).

In-Work Tax Credit

The in-work tax credit is an additional payment for families who work a certain number of hours each week and are not receiving a main benefit. For the 2026 tax year:

Maximum rate: Up to $97.00 per week for families with one or more children
Work hours requirement: At least 20 hours per week for a sole parent, or 30 hours combined for a couple
Abatement: Reduces by 27¢ for every dollar of family income above $42,700

Best Start Tax Credit

Best Start is a payment for families with newborn children aged under 3 (or under 5 if the child is not eligible for the Childcare Subsidy). For the 2026 tax year:

Maximum rate: Up to $66.86 per week per child
First year: Paid to all families regardless of income
Years 2 and 3: Income-tested — abates at 21¢ per dollar above $66,000

Minimum Family Tax Credit

This credit guarantees that families working at least 20 hours per week (sole parent) or 30 hours combined (couple) will have a minimum after-tax income. For the 2026 tax year, the guaranteed minimum after-tax income is approximately $39,940 per year.

Eligibility Criteria

To qualify for Working for Families, you must:

Be a New Zealand resident (ordinarily living in New Zealand)
Have a dependent child aged 18 or under (or 18 and still financially dependent)
Meet the income and work tests for each component
Not be receiving a main benefit (for in-work tax credit)

How to Apply

You can apply for Working for Families through myIR:

Log in to myIR at ird.govt.nz/myir
Select 'Working for Families' from the menu
Follow the prompts to provide information about your family situation and income
Choose how you'd like to receive payments — weekly, fortnightly, or as a lump sum at the end of the year

How Payments Work

Working for Families payments are based on your estimated family income for the current year. If your actual income differs from your estimate, you may need to repay some of the credits or receive a top-up at the end of the year. It's important to keep your income estimate up to date to avoid an end-of-year debt.

2025/26 Rates and the 2026/27 Changes

For the 2025/26 year the headline rates are: Family Tax Credit up to $144.00 per week for the eldest child and $117.00 per week for each subsequent child; In-Work Tax Credit up to $97.00 per week for families meeting the work-hours test (20 hours for a sole parent, 30 hours combined for a couple); and Best Start around $66.86 per week for children under 3 (under 5 if not eligible for the childcare subsidy). All components abate together at 27 cents per dollar of family income above $42,700. From 1 April 2026 the rules tighten and loosen at the same time: the abatement rate rises to 27.5% but the threshold climbs to around $44,900, and Best Start becomes income-tested from the first year for babies born on or after 1 April 2026 (abating 21 cents per dollar above roughly $79,000 of family income). Families with babies born before that date keep the current first-year rules.

Why Your Income Estimate Matters

Working for Families is paid on your estimated family income for the year, then reconciled against your actual income after 31 March. Under-estimate your income and you will owe a debt at year end; over-estimate and you receive a top-up. The most common cause of WFF debt is a pay rise or a partner starting work without updating the estimate. Update your estimate in myIR whenever income changes by more than a few thousand dollars, and remember the abatement math: because credits reduce by 27 cents (27.5 cents from 2026/27) per dollar above the threshold, a $10,000 pay rise in the abatement zone costs your family $2,700-$2,750 of credits — an effective marginal rate worth knowing before you take on extra hours.

Related Guides

Deep dive — 2026 update

The 2026/27 rates, side by side

Credit	Weekly	Annual	Key test
Family Tax Credit — eldest child	$152.33	$7,921	Income-tested; abates over $44,900
Family Tax Credit — subsequent child	$124.12	$6,454	Same abatement as above
In-Work Tax Credit	$147 (1–3 children)	$7,670	20 hrs/wk single, 30 hrs/wk couple; not on a main benefit
Best Start	$77	$4,041	Children under 3; abates over $79,000
Minimum Family Tax Credit	Tops up to $703 net	$36,604	Working families with children below the guarantee

Two details in that table cause most disputes. The IWTC's $147 rate is a temporary increase from 1 April 2026, scheduled to revert to $97 after 31 March 2027 unless petrol prices trigger an earlier reset. And the abatement threshold rose from $42,700 to $44,900 on 1 April 2026, with the abatement rate up from 27% to 27.5%.

Abatement worked example: $60,000 family income

A couple with three children, both working 20 hours a week, family income $60,000:

Family Tax Credit: $7,921 + $6,454 + $6,454 = $20,829 before abatement.
Income over the threshold: $60,000 − $44,900 = $15,100.
Abatement: $15,100 × 27.5% = $4,152.50.
FTC after abatement: $20,829 − $4,152.50 = $16,676.50.
Add IWTC of $7,670 — the IWTC is not abated, only the FTC and Best Start abate.
Total Working for Families: about $24,346 for the year, or roughly $468 a week.

At higher incomes the IWTC drops away first, then the FTC abates towards nil — which is why the calculation matters more than a rule of thumb.

The hours test is the trap

Single parent: normally working 20 hours or more a week.
Couple: 30 hours a week combined.
Part-time and variable hours: you can measure over a 5-week period to even out irregular weeks.
On a main benefit: no IWTC while the benefit is paid — but you can qualify in the same year you come off it, which is why the income estimate is critical.

Underestimate your income and IRD overpays during the year, which becomes a debt. Overestimate and you get a lump sum at year end. For fluctuating income, updating your estimate mid-year through myIR is the safest option.