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 $143.22 per week
- Subsequent children: Up to $107.86 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 $97.66 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.