The Family Tax Credit (FTC) is the core component of Working for Families: a regular payment for families with dependent children, based on the number of children and your family income. It is available to working families and to families on a main benefit.
For 1 April 2026 to 31 March 2027, the full family tax credit is $7,921 a year ($152 a week) for the eldest child and $6,454 a year ($124 a week) for each other child. It reduces by 27.5 cents for every dollar of family income over $44,900. Families on a main benefit can get it too (unlike the in-work tax credit). Apply through myIR.
Full FTC by Number of Children
These are full entitlements before abatement, for 1 April 2026 to 31 March 2027:
| Number of children | Weekly FTC | Annual FTC |
|---|---|---|
| 1 | $152 | $7,921 |
| 2 | $276 | $14,375 |
| 3 | $400 | $20,829 |
| 4 | $524 | $27,283 |
| 5 | $648 | $33,737 |
Each child after the eldest adds $6,454 a year. Weekly figures are the annual amount divided by 52 and rounded down to the dollar, which is how IRD pays instalments. Rates change each 1 April.
Eligibility
To receive the FTC:
- You must be aged 16 or over and the principal caregiver of a dependent child
- The child must be dependent: aged 15 or younger, 16 or 17 and financially dependent on you, or 18, financially dependent on you and still at school or in tertiary study
- The child must live with you for at least a third of any 4-month period
- You must meet the residency requirements
Unlike the in-work tax credit, the FTC is not restricted to working families: families receiving a main benefit (such as Jobseeker Support or Sole Parent Support) can get it.
Abatement
The FTC reduces as family income rises:
- Abatement starts at: $44,900 family income a year
- Abatement rate: 27.5% of family income over the threshold
- If the abatement is more than your full FTC, the rest comes off any in-work tax credit
Example, one child:
| Family income | Full FTC | Abatement | FTC received |
|---|---|---|---|
| $30,000 | $7,921.00 | $0.00 | $7,921.00 |
| $55,000 | $7,921.00 | $2,777.50 | $5,143.50 |
| $65,000 | $7,921.00 | $5,527.50 | $2,393.50 |
| $75,000 | $7,921.00 | $8,277.50 | $0.00 |
For one child the FTC reaches zero at a family income of about $73,704. With more children the full credit is higher, so it lasts to higher incomes.
IRD’s own example: a family of three children on $100,000 has a full FTC of $20,829, an abatement of $15,152.50, and an FTC of $5,676.50 a year, paid as $109 a week.
How FTC Is Paid
- Weekly or fortnightly: based on your estimated family income, squared up after the end of the tax year.
- Lump sum: after the end of the tax year, based on your actual family income, shown on your income tax assessment.
Most families on lower incomes prefer weekly or fortnightly payments for budgeting.
Source: Inland Revenue, “Family tax credit” and “Dependent child” (ird.govt.nz, checked 30 September 2026).