The Minimum Family Tax Credit (MFTC) is a top-up payment that makes sure working families with dependent children get a minimum after-tax income each week. It is for families on low salaries or wages, not for families on a main benefit.
For 1 April 2026 to 31 March 2027 the MFTC tops up a working family's income to $36,604 a year after tax ($703 a week). A sole parent must work at least 20 hours a week, and in a two-parent family one or both parents must work at least 30 hours a week between them, for a salary or wage. It isn't available to families on a main benefit. The amount doesn't depend on how many children you have.
How MFTC Works
If your family’s net income (after tax) is under the MFTC limit, IRD tops it up to the limit:
MFTC = $36,604 − your family’s after-tax income for the year
If your after-tax income is at or above the limit, you get no MFTC. The MFTC reduces dollar for dollar as income rises, unlike the family tax credit and in-work tax credit, which abate at 27.5 cents per dollar over $44,900.
MFTC Income Limit
| 1 April 2026 to 31 March 2027 | Amount |
|---|---|
| Annual after-tax family income IRD tops up to | $36,604 |
| Weekly equivalent | $703 |
IRD says the amount normally changes from year to year to keep up with the cost of living.
Eligibility
- You get Working for Families for a dependent child
- You work the minimum hours for a salary or wage every week you claim it: at least 20 hours for a sole parent, at least 30 hours between a couple
- Your income is taxed before you’re paid (a salary or wage). Self-employed income, partnership income and shareholder salaries don’t qualify on their own, but you can still get MFTC if you also earn a salary or wage under the income limit and work the minimum hours for it
- You don’t get a main benefit (IRD’s table also rules out families where the child gets an unsupported child’s benefit)
Example: How MFTC Tops Up Income
Scenario: A sole parent works 25 hours a week at the adult minimum wage ($23.95 an hour). Gross income for the year: about $31,135. After PAYE and the ACC earners’ levy that’s about $26,234 a year.
- MFTC limit: $36,604 a year after tax
- So the MFTC tops up roughly the gap between the two
- IRD works out the exact amount from the family’s net income for the year; its Working for Families calculator gives an estimate
The family could also get the family tax credit for their children, since their income is under the $44,900 abatement threshold.
MFTC vs FTC vs IWTC
| Credit | For whom | How it reduces |
|---|---|---|
| Family Tax Credit | Families with children, including on a main benefit | 27.5c per $1 above $44,900 |
| In-Work Tax Credit | Families earning income from paid work, not on a main benefit | Only after abatement has used up the family tax credit |
| Minimum Family Tax Credit | Low-income families on a salary or wage, working the minimum hours | Dollar for dollar up to the limit |
Source: Inland Revenue, “Minimum family tax credit” and “Government payments that affect your Working for Families” (ird.govt.nz, checked 30 September 2026).