Working for Families Rates 2026-27: FTC, IWTC & Best Start (from 1 April 2026)

Working for Families (WfF) is New Zealand’s main package of in-work tax credits for families with dependent children. The 2026-27 year (from 1 April 2026) brings the biggest set of changes in years: a temporary In-Work Tax Credit boost from Budget 2026, a CPI uplift to the Family Tax Credit and Best Start, a higher abatement threshold, and first-year income-testing of Best Start for new babies. This guide lays out every 2026-27 rate, all verified against Inland Revenue’s published figures.

The 2026-27 rates at a glance

Credit	2025-26	2026-27 (from 1 April 2026)	Annual (2026-27)
FTC — eldest child	$144.70/wk	$152.30/wk	$7,921
FTC — each subsequent child	$117.90/wk	$124.10/wk	$6,454
In-Work Tax Credit (1–3 children)	$97.50/wk	$147.50/wk (temporary)	$7,670
Best Start (per child)	$73.80/wk	$77.70/wk	$4,041
Abatement threshold (FTC + IWTC)	$42,700	$44,900	—
Abatement rate (FTC + IWTC)	27c	27.5c per $1	—
Best Start income test	$79,000 / 21%	$79,000 / 21%	—
MFTC net floor	$35,316	$36,604	$703/wk net

Source: Rates confirmed against Inland Revenue’s Working for Families weekly payments — 1 April 2026 to 31 March 2027 (IR271) and the IRD Best Start page. Weekly figures in IR271’s table are rounded to the nearest dollar; the cents-precise weekly amounts above match IRD’s published guides.

1. Family Tax Credit (FTC)

The Family Tax Credit is the core payment, available to families with dependent children whether or not the parents are in paid work.

Child	Weekly	Annual
First / eldest child	$152.30	$7,921
Each subsequent child	$124.10	$6,454

A family with two children receives a full FTC of $14,375/year ($276.40/week) before any abatement.

Abatement (2026-27): FTC starts reducing once family income passes $44,900, at 27.5 cents per dollar above that threshold. For every $1,000 over $44,900, the combined FTC + IWTC entitlement falls by $275.

Worked example — couple, 2 children, $60,000 income:

• Full FTC = $7,921 + $6,454 = $14,375
• Income over threshold = $60,000 − $44,900 = $15,100
• Abatement = $15,100 × 27.5% = $4,153
• FTC after abatement (before IWTC) ≈ $10,222/year

2. In-Work Tax Credit (IWTC) — temporarily boosted

The IWTC is for families normally in paid work. Budget 2026 added a temporary $50/week boost, taking the base rate from $97.50 to $147.50/week for 1–3 children — an annual base of $7,670. Each child above three adds $15/week.

Item	2025-26	2026-27
IWTC base (1–3 children)	$97.50/wk	$147.50/wk
Annual base	$5,070	$7,670
Extra per child above 3	$15/wk	$15/wk

This boost is temporary. It applies to the 2026-27 year only and reverts to $97.50/week on 1 April 2027 — or earlier if the 91-octane petrol price falls below $3.00/L for four consecutive weeks. Treat the extra ~$50/week as a 12-month uplift, not a permanent rate change. For the full mechanics, family-income examples and the petrol-price trigger, see the IWTC $50/week boost guide.

Eligibility (unchanged in 2026-27): at least one dependent child; in paid work (single parent 20+ hrs/week, couple 30+ hrs combined); not receiving a main benefit; NZ tax resident.

IWTC abates at the same rate and threshold as FTC — 27.5 cents per dollar above $44,900.

3. Best Start Tax Credit (BSTC)

Best Start helps with the cost of a child’s early years.

• Rate from 1 April 2026: $77.70/week ($4,041/year) per eligible child — up from $73.80/week ($3,838/year) in 2025-26.
• Year 1 (birth to 1): From 1 April 2026, income-tested at $79,000 / 21% for babies born on or after 1 April 2026. Babies born before that date keep the universal year-1 entitlement until they turn one.
• Years 2 and 3 (ages 1–3): Income-tested at $79,000 / 21%. Not paid concurrently with paid parental leave.

At the $79,000 / 21% income test, Best Start phases out completely at roughly $98,242 of family income.

4. Minimum Family Tax Credit (MFTC)

The MFTC tops up the after-tax income of families working but earning very little. For 2026-27 it guarantees at least $36,604 net per year (about $703/week after tax) — up from $35,316 in 2025-26, uplifted via the Income Tax (Tax Credit) Order 2025 (effective 1 April 2026, not a Budget 2026 line item).

MFTC and IWTC are mutually exclusive — IRD calculates which delivers more and applies that one. Most moderate-income working families receive IWTC instead.

Putting it together — a worked WfF entitlement

Couple, 2 children, $65,000 combined income, both working (IWTC-eligible), 2026-27:

Component	Amount
FTC eldest	$7,921
FTC subsequent	$6,454
IWTC base	$7,670
Subtotal	$22,045
Abatement: ($65,000 − $44,900) × 27.5%	−$5,528
Annual Working for Families	$16,517
Per week	$317

Run your own family’s numbers — including Best Start, MFTC comparison and the right number of children — in the Working for Families calculator, and check your year-end position with the WfF Square-Up calculator.

What changed from 2025-26

• IWTC — temporary +$50/week boost to $147.50/week (reverts 1 April 2027 or on the petrol-price trigger).
• FTC — CPI uplift: eldest $144.70 → $152.30/week; subsequent $117.90 → $124.10/week.
• Best Start — $73.80 → $77.70/week; year 1 now income-tested at $79,000 / 21% for babies born on or after 1 April 2026.
• Abatement — threshold $42,700 → $44,900; rate 27c → 27.5c per dollar (FTC + IWTC).
• MFTC — net floor $35,316 → $36,604/year ($703/week net).

Bottom line

For 2026-27, a typical eligible working family is meaningfully better off — driven mostly by the temporary IWTC boost worth around $2,600/year, on top of the CPI uplift to FTC and Best Start and the higher abatement threshold. But the IWTC boost is temporary and conditional, so plan your family budget assuming it survives the full year while keeping an eye on the 1 April 2027 reversion.

Model your entitlement in the Working for Families calculator, read the deeper Working for Families tax credits guide, and see how a minimum wage rise to $23.95 interacts with WfF abatement.