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newzealand • NZD

Working for Families Calculator NZ 2026

Free newzealand calculator designed to help users make accurate financial decisions using local standards.

By Team GlobalCalqulate · About our editorial standards

Calculator inputs

Family Details

Family Type

Family type affects neither credit's rate — the In-Work Tax Credit is a flat amount per family, the same for a sole parent and a couple. It is collected for context only.

Total number of dependent children in your care. Include all children under 18 (or under 19 if still at school).

Best Start is $77/week ($4,004/year) per child, income-tested above $79,000 of family income.

Best Start runs until a child's 3rd birthday, so 1- and 2-year-olds qualify too. Count them here.

Income Details

Your total family income before tax. This includes salary, wages, benefits, and other taxable income.

Rental income, dividends, interest, or other non-employment income.

In-Work Tax Credit Eligibility

Does anyone in the family have income from paid work?

There is no minimum number of hours. The 20-hour (sole parent) and 30-hour (couple) tests were removed on 1 July 2020 — any income from paid work counts.

Receiving a main benefit or student allowance?

Jobseeker Support, Sole Parent Support, Supported Living Payment or a Student Allowance rule out the In-Work Tax Credit. The Family Tax Credit is unaffected.

Optional Additions

Include Accommodation Supplement?

Accommodation Supplement is an MSD payment you can receive alongside Working for Families. This calculator does not work it out — enter what you already receive and it is added to the total.

Weekly Accommodation Supplement payment. Enter 0 if not receiving.

Your results

Financial Disclaimer: This is an estimate of Working for Families entitlement, not a determination. Your actual payments depend on family scheme income, care arrangements and circumstances that change during the year, and are squared up by Inland Revenue after year end. Confirm your entitlement with Inland Revenue. Full disclaimer.

Sources & methodology

Formula:
Maximum Family Tax Credit
Reference:
Inland Revenue (IRD)
Rates for:
2026/27
Figures verified:
— checked against the primary source above
Scheduled re-verification:
April 2027

Calculation type: Rule-based calculation. Uses 2026/27 rates and thresholds. Figures are taken from Inland Revenue (IRD) — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Maximum Family Tax Credit

FTC = 7904 + 6448 × (children − 1)

The eldest child attracts the higher rate and each additional child the lower rate, before any income test.

Abatement of FTC and IWTC

Reduction = max(0, family income − 44900) × 27.5%

Credits reduce by 27.5 cents for every dollar of family scheme income above the threshold.

Best Start abatement

Reduction = max(0, family income − 79000) × 21%

Best Start has its own separate, higher threshold and lower rate, which is why it can continue after the other credits have run out.

Variable definitions

SymbolMeaningUnit
Family incomeFamily scheme income. Combined income of both partners on a broader basis than salary alone, including certain trust, rental and overseas income.NZD/year
FTCFamily Tax Credit. Paid per child to the principal caregiver, regardless of whether the caregiver works.NZD/year
IWTCIn-Work Tax Credit. Additional flat credit for families with income from paid work who are not on a main benefit or student allowance.NZD/year

Step-by-step calculation

  1. 1. Total the maximum entitlement
    Add the Family Tax Credit for each child, the In-Work Tax Credit if the family has income from paid work and is not on a main benefit, and Best Start for each child under three.
  2. 2. Establish family scheme income
    Combine both partners' income on the family scheme basis, which is broader than taxable salary.
  3. 3. Abate the FTC and IWTC
    Reduce them by 27.5 cents per dollar of income above the threshold, to a floor of zero.
  4. 4. Abate Best Start separately
    Apply its own threshold and 21% rate, independently of the other credits.

Limitations

  • Entitlement is squared up against actual income after the tax year ends. If income rises during the year you can be overpaid and required to repay, so keep Inland Revenue updated.
  • Family scheme income is broader than salary and includes items such as certain trust income, rental profit and some overseas income — using salary alone overstates entitlement.
  • Shared care arrangements split entitlement according to the proportion of care, which this calculator does not model.
  • The Minimum Family Tax Credit, which tops low-income working families up to a guaranteed net income, is a separate calculation.
  • Child Support, Best Start regime changes and other Work and Income assistance are outside this estimate.

This page is educational. It applies published rates and thresholds to the figures you enter and shows the arithmetic behind the result. It is an estimate, not a tax determination: your actual liability depends on circumstances this calculator does not collect, and only the relevant tax authority — or an accountant who can see your full position — can confirm what you owe.

Sources & references

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

What does Working for Families actually pay?

Tap to view the answer

The Family Tax Credit is worth up to $7,904 a year for the eldest child and $6,448 for each additional child. Working families may also receive the In-Work Tax Credit, and families with a child under three can receive Best Start at up to $77 a week per child.

How does the income test reduce my payment?

Tap to view the answer

Family and In-Work Tax Credits abate once family income passes $44,900, reducing by 27.5 cents for every dollar above it. Best Start has its own separate test, abating at 21 cents in the dollar above $79,000, which is why it can continue after the other credits have gone.

Do I need to be working to qualify?

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Not for the Family Tax Credit, which is available to caregivers regardless of employment. The In-Work Tax Credit does have a work test: a single parent must work at least 20 hours a week, or 30 hours combined for a couple.

Which income counts for the test?

Tap to view the answer

Family scheme income is broader than salary — it includes both partners' income, plus items such as certain trust income, rental profit and some overseas income. Because the test uses family scheme income rather than take-home pay, entitlement is often lower than a salary-only estimate suggests.

Why might my end-of-year result differ from this estimate?

Tap to view the answer

Working for Families is squared up against actual income for the full tax year. If your income rose during the year, or your care arrangements or relationship status changed, you may have been overpaid and have to repay some of it. Keep Inland Revenue updated as circumstances change.

Need more help? Contact support or email globalcalqulate@gmail.com

We typically reply within 24–48 hours.

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