NZ Budget 2026 Net Impact Calculator
See your 2026-27 personal dollar impact from Budget 2026 — combining the IWTC boost, FTC and Best Start CPI uplifts, KiwiSaver employer match increase, and donation tax credit cap into a single annual figure.
Estimate your 2026-27 personal dollar impact — IWTC boost, FTC + Best Start CPI uplift, KiwiSaver employer match increase, and donation tax credit cap.
Your income
KiwiSaver & donations
The $100,000 cap only affects donations above $100k. Most filers see no change here.
How this calculator works
Four substantive Budget 2026 changes are modelled, each compared to its 2025-26 baseline:
- In-Work Tax Credit boost — base rises from $97.50 to $147.50/week for 2026-27 only. Applies to families with dependent children where at least one parent meets the work-hours threshold and isn't receiving a main benefit.
- Family Tax Credit + Best Start CPI uplift — FTC eldest $144.70 → $152.30/wk; FTC subsequent $117.90 → $124.10/wk; Best Start $73.80 → $77.70/wk. Best Start year-1 becomes income-tested at $79,000 / 21% for babies born on or after 1 April 2026.
- WfF abatement settings — threshold $42,700 → $44,900 (helps), rate 27% → 27.5% (hurts slightly). Net effect is positive for most families above the threshold.
- KiwiSaver employer match — 3% → 3.5% from 1 April 2026, net of Employer Superannuation Contribution Tax (ESCT) at your applicable bracket.
- Donation tax credit $100k cap — only impacts donors above $100,000/year of eligible donations. Below that, the credit is unchanged at 33.33%.
The calculator does NOT quantify PAYE bracket freeze / fiscal drag — there's no Budget 2026 action there, just inaction that lets bracket creep continue. See the PAYE freeze + fiscal drag insight for that analysis.
Frequently asked questions
How much extra will my family receive from Budget 2026?
It depends on your family income, number of children, and whether you meet the IWTC work-hours test. A working family on $65,000 with 2 children typically receives around $3,800/year extra in 2026-27 vs 2025-26 — mostly from the temporary $50/week In-Work Tax Credit boost. Use the calculator above to estimate your exact figure.
Is the IWTC boost permanent?
No. The $50/week boost applies for the 2026-27 tax year only. It expires on 1 April 2027 OR earlier if 91-octane petrol drops below $3/litre for four consecutive weeks, whichever comes first. From 1 April 2027 the IWTC reverts to $97.50/week unless Parliament renews the legislation.
What's the KiwiSaver impact?
If you're a KiwiSaver member, your employer's minimum contribution rises from 3% to 3.5% on 1 April 2026 — a 0.5-percentage-point gain on your gross salary. On $70,000 that's about $350/year gross, around $290/year net of ESCT depending on your bracket. Stage 2 (to 4%) is deferred to 1 April 2028.
Does the donation tax credit cap affect me?
Only if you donate more than $100,000 in eligible donations per year. Below that, the credit is unchanged at 33.33% of donations. Above $100k, donations beyond the cap no longer attract a credit — the maximum annual credit is now $33,333.33 per individual.
What about PAYE thresholds?
PAYE thresholds are unchanged in Budget 2026 — fiscal drag (bracket creep) continues to lift effective tax rates as nominal incomes rise. The calculator doesn't quantify this as a 'Budget 2026 change' because no action was taken; see the PAYE freeze + fiscal drag insight for the implicit dollar impact.
Related Budget 2026 content
Budget 2026 hub
Watchlist with all 11 items, status, and live calculator links.
Budget 2026 summary
Four substantive changes plus what stayed the same.
IWTC $50/wk boost deep-dive
157,000 families affected; eligibility and family-income examples.
KiwiSaver Budget 2026 changes
3.5%, Stage 2 to 2028, 16-17yo eligibility, MTC stays.
Sources
Budget 2026 figures sourced from Treasury Budget at-a-Glance, IRD Tax Policy, and the IRD IWTC information sheet. WfF calculations use the same engine as our Working for Families calculator.
Published 28 May 2026 (post-Budget). Rates sourced from IRD and Treasury.
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