Tax Credit
Working for Families Tax Credit
Working for Families (WFF) is a package of tax credits paid by Inland Revenue (IRD) to households raising children. It combines the Family Tax Credit (per child), the In-Work Tax Credit (for working families), and the Minimum Family Tax Credit safety net. It's the single biggest cash entitlement most NZ parents are eligible for — and easy to miss if your income changes mid-year.
What is this?
Working for Families Tax Credit is administered by IRD. Income Tax Act 2007, subpart MD
Am I eligible?
- You're the principal caregiver of one or more dependent children under 18
- You're a NZ tax resident, or your partner is
- Your family's total annual income is below the WFF cut-out point
- For In-Work Tax Credit: you earn income from paid work and are not on a main MSD benefit or Student Allowance
How much could I get?
Family Tax Credit: $7,921/yr for the eldest child, $6,454/yr for each subsequent child.
In-Work Tax Credit: $147/week for up to 3 children (temporary increase to 31 March 2027), plus $15/week for each additional child.
Abatement: payments reduce by 27.5¢ for every $1 of family income above $44,900.
Rates current as of Budget 2025. Personal amounts depend on your situation.
How to apply
- Register for Working for Families through myIR
- Provide estimated annual family income
- Choose payment frequency (weekly, fortnightly, or lump sum at end of tax year)
- Processing time: typically 5–10 working days
Documents you'll need
- · IRD number for you and your partner (if applicable)
- · Estimated annual income for the current tax year
- · Children's birth certificates or IRD numbers
- · Details of any shared care arrangements
Frequently asked questions
What is the income cut-off for Working for Families in NZ?
Abatement starts at $44,900 and payments reduce by 27.5¢ per dollar of family income above that. The exact cut-out depends on the number of children and which credits apply — single parents of one child typically lose all WFF around $80–90k.
Can I backdate a Working for Families claim?
Yes. IRD can reassess up to four prior tax years under its amendment window. If your income or family situation means you were eligible but didn't register, call IRD on 0800 227 773 and request a WFF reassessment.
Do I qualify for the In-Work Tax Credit if I'm self-employed?
Yes — as long as your self-employment earnings are from paid work and you're not receiving a main MSD benefit or Student Allowance. You'll declare income through your IR3 at year end, and IRD reconciles WFF with your actual earnings.
How often is Working for Families paid?
You choose: weekly, fortnightly, or as a lump sum at the end of the tax year. Weekly/fortnightly uses your estimated income — if you under-estimate, you may owe a portion back; over-estimate and you get a top-up.
Related benefits you might also qualify for
Best Start Tax Credit
Best Start pays up to $77/week for each child under 3. See 2026 eligibility, the new Year 1 income test, and how to claim via IRD.
Childcare Subsidy
Childcare Subsidy pays up to $6.72/hour for approved childcare. See 2026 rates, income brackets and how to apply via MSD.
Independent Earner Tax Credit (IETC)
IETC gives eligible workers up to $520/year tax back. See 2026 income band ($24,000–$70,000) and how to claim.
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