Working for Families explained: what you can get and how it's worked out

Working for Families is one of the most useful (and most confusing) bits of support for Kiwi parents. It's real money, often hundreds of dollars a week, but the mix of tax credits and income tests puts a lot of people off working out what they're actually owed. This guide breaks it down in plain English.

What is Working for Families?

Working for Families is a set of tax credits from Inland Revenue that helps with the cost of raising children. It isn't one payment: it's a few credits that stack together based on your family, then reduce as your income goes up. The main ones are the Family Tax Credit, the In-Work Tax Credit, and Best Start.

You can get it paid weekly or fortnightly during the year, or as a lump sum after the tax year ends. Either way, it's squared up at the end of the year against your actual income.

The Family Tax Credit

This is the core payment, and you can get it whether or not you're working. For the 2026/27 year it's worth up to:

• $152 a week for your eldest child, and
• $124 a week for each additional child.

So a family with two children could get up to $276 a week before any income test.

The In-Work Tax Credit

This is an extra payment for families who are normally in paid work: roughly 20 hours a week for a single parent, or 30 hours a week between a couple. For 2026/27 it's temporarily increased to up to:

• $147 a week for up to three children, plus
• $15 a week for each additional child.

Worth knowing: this higher rate is a temporary boost for the 2026/27 year and is due to drop back after 31 March 2027, so don't bank on it long term.

Best Start

Best Start is for children under three, worth up to $77 a week per child. In a child's first year it's paid regardless of your income. In the second and third year, it starts to reduce once your family income is over $79,000.

How your income reduces the payments

Here's the part that trips people up. Once your family income passes $44,900 a year, your Family Tax Credit and In-Work Tax Credit reduce by 27.5 cents for every dollar you earn above that. The Family Tax Credit reduces first, and once it hits zero, the In-Work Tax Credit starts reducing too.

That's why two families with the same number of kids can get very different amounts: it's driven by your combined income. The best way to see your own number is to put your figures into the Working for Families calculator, which uses the current rates and does the income test for you.

There's also the Minimum Family Tax Credit

If you're working the required hours but your income is still low, the Minimum Family Tax Credit tops your after-tax family income up to a guaranteed level. It's a smaller, more specific payment, so if you think you might qualify it's worth checking directly with Inland Revenue.

How to get it

1. Apply through Inland Revenue (myIR), or through Work and Income if you're already getting a benefit.
2. Give a realistic estimate of your family income for the year. Over-estimate and you may be owed a refund at year end; under-estimate and you could have to pay some back, so keep it updated if your income changes.
3. Tell IRD when things change: a new baby, a change in income, or a change in who's caring for the children can all change your entitlement.

A note on tax codes: you can't get Working for Families and the independent earner tax credit (IETC) at the same time. If you start receiving Working for Families, update your tax code with your employer.

The short version

Working for Families stacks the Family Tax Credit, In-Work Tax Credit and Best Start, then reduces them as your income rises above $44,900. A lot of families either don't realise they qualify or under-estimate what they'd get. Run your numbers through the Working for Families calculator, then apply through Inland Revenue.

This is general information using the current 2026/27 rates, not financial or tax advice. Rates change every 1 April, and your exact entitlement depends on your circumstances, so check with Inland Revenue at ird.govt.nz/working-for-families.