Working for Families (WfF) is a package of tax credits designed to support New Zealand families with dependent children. It is one of the largest income support programmes in the country, helping hundreds of thousands of families make ends meet. The credits are income-tested, meaning the amount you receive decreases as your family income rises, but they extend well into middle-income levels. Many families who could claim Working for Families do not, either because they do not know they are eligible or because the system seems confusing. This guide explains how it works in 2026.
The Four Working for Families Credits
Working for Families consists of four separate credits:
- Family Tax Credit (FTC): The main credit, paid to all qualifying families based on the number and age of children. This is the largest component for most families.
- In-Work Tax Credit (IWTC): An additional credit for families where the parents work a minimum number of hours (20 hours per week for sole parents, 30 hours combined for couples). Worth up to NZ$72 per week.
- Best Start Tax Credit: NZ$73 per week for every child from birth to the age of 3. Not income-tested for the first year, then income-tested from age 1 to 3.
- Minimum Family Tax Credit (MFTC): A top-up for working families to ensure their after-tax income does not fall below a minimum level.
Family Tax Credit Rates
The Family Tax Credit rates for 2026 are approximately:
- Eldest or only child: NZ$127.73 per week
- Second and subsequent children (aged 0–15): NZ$104.08 per week
- Children aged 16–18 (still at school): NZ$104.08 per week
For a family with two children, the maximum Family Tax Credit is approximately NZ$231.81 per week (NZ$12,054 per year), before income testing reduces it. The In-Work Tax Credit adds up to NZ$72 per week for families with up to three children, with NZ$15 extra per week for each additional child.
Income Testing: How Your Income Affects the Amount
Working for Families credits are reduced (abated) as family income rises above a threshold. For 2026:
- The abatement threshold is NZ$42,700 per year
- For income above this threshold, credits are reduced by 27 cents for every dollar earned
Family income includes the combined income of both parents (or the sole parent), including salary, wages, self-employment income, investment income, and most other taxable income.
For example, a family with two children earning NZ$80,000 combined would have their credits reduced by 27% of (NZ$80,000 − NZ$42,700) = 27% of NZ$37,300 = NZ$10,071. With maximum credits of approximately NZ$15,830 (FTC + IWTC), their net entitlement would be approximately NZ$5,759 per year, or NZ$111 per week. That is still a meaningful amount.
Use our Working for Families calculator to see exactly how much your family could receive.
How to Claim
You can apply for Working for Families through:
- Inland Revenue (IRD): The most common method. Apply through myIR online or by calling IRD. Payments are made weekly or fortnightly directly to your bank account.
- Work and Income (MSD): If you receive a main benefit (such as Jobseeker Support), Working for Families is administered through Work and Income instead.
When you apply, you will need to provide an estimate of your family income for the current tax year. IRD uses this estimate to calculate your regular payments. At the end of the tax year, your actual income is assessed and an adjustment is made – you may receive a top-up if your estimate was too high, or you may need to repay some credits if your estimate was too low.
This year-end square-up can catch families off guard if their income was significantly different from the estimate. Being as accurate as possible with your income estimate helps avoid unexpected repayments. Our salary calculator can help you project your annual income accurately.
Common Mistakes
- Not claiming at all: Many families with incomes up to NZ$90,000–NZ$100,000 are still entitled to some credits. Check your eligibility even if you think you earn too much.
- Underestimating income: This leads to overpayments that must be repaid. Include all income sources, not just salary.
- Not updating IRD when circumstances change: If you have another child, your income changes significantly, or your relationship status changes, update IRD promptly to avoid incorrect payments.
- Forgetting the Best Start credit: This is often overlooked for newborns. Apply as soon as the baby is born and has an IRD number.
Working for Families can make a significant difference to your household budget. Combined with your employment income and other supports, it ensures that working families have enough to meet the cost of raising children. Use our Working for Families calculator and salary calculator to understand the full picture of your family finances.