The Family Tax Credit in New Zealand: current rates and who qualifies

Written by Henry Smith · Reviewed by Smiths Insurance & KiwiSaver, licensed Financial Advice Provider (FSP712931) · Updated 2026-09-09 · Reviewed annually, or sooner if the rules it describes change.

Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.

The Family Tax Credit pays $7,921 a year ($152 a week) for your eldest dependent child and $6,454 a year ($124 a week) for each other child, paid in full if your family income is $44,900 or less, then reduced by 27.5 cents for every dollar above that (Inland Revenue, retrieved 9 September 2026). It is the main Working for Families payment and, unlike the In-Work Tax Credit, you do not need to be in paid work to get it.

How much is the Family Tax Credit?

The credit is a fixed dollar amount per child that adds up across your family, then reduces once your family income passes the threshold. The table below sets out the full, unreduced rate.

The Family Tax Credit pays more for your first child than for any child after that, and the table below shows the current annual and weekly rates.

Child	Full Family Tax Credit (per year)	Full Family Tax Credit (per week)
Eldest dependent child	$7,921	$152
Every other dependent child	$6,454	$124

(Inland Revenue: Family Tax Credit, retrieved 9 September 2026.)

How much is the Family Tax Credit per child in NZ?

$7,921 a year ($152 a week) for your eldest dependent child, and $6,454 a year ($124 a week) for every other dependent child, at the full unreduced rate (Inland Revenue, retrieved 9 September 2026). A family with three children, for example, would be entitled to $7,921 plus two lots of $6,454 at the full rate, before any abatement.

How is the abatement worked out once my income is over $44,900?

Inland Revenue takes your family income, subtracts $44,900, then multiplies the remainder by 27.5%. That amount, the abatement, is subtracted from your full-year Family Tax Credit entitlement (Inland Revenue, retrieved 9 September 2026). If the abatement equals or exceeds your full entitlement, you get nothing from the Family Tax Credit, though any leftover abatement is also applied against your In-Work Tax Credit if you receive one.

Is the Family Tax Credit the same as Working for Families?

No. Working for Families is the umbrella name for four separate payments: the Family Tax Credit, the In-Work Tax Credit, the Best Start payment and the Minimum Family Tax Credit. The Family Tax Credit is the main and most widely paid of the four, but it is one component, not the whole scheme (Inland Revenue, retrieved 9 September 2026). Our Working for Families overview covers how all four fit together.

Do you need to be working to get the Family Tax Credit?

No. Unlike the In-Work Tax Credit, the Family Tax Credit does not require you to be in paid work. It is available to any principal caregiver of a dependent child who meets the residency requirements, including someone on a main benefit (Inland Revenue: Government payments that affect your Working for Families, retrieved 9 September 2026). That table confirms you can still receive the Family Tax Credit while on a main benefit, New Zealand Superannuation, a student allowance or paid parental leave.

How is the Family Tax Credit paid, weekly or as a lump sum?

You can choose to receive it as regular instalments throughout the year, paid weekly (full-year entitlement divided by 52) or fortnightly (divided by 26), or you can wait and claim it as a single payment after the tax year ends (Inland Revenue, retrieved 9 September 2026). Instalments are rounded down to the nearest dollar.

What is the maximum income to still qualify for the Family Tax Credit?

There is no fixed cut-off; the credit reduces gradually rather than stopping at a set income. Because it abates at 27.5 cents per dollar over $44,900, a family with several children and a large full-year entitlement can still receive a partial payment at a considerably higher income than a family with one child (Inland Revenue, retrieved 9 September 2026). Inland Revenue's online estimator is the fastest way to check your own figure.

Does the Family Tax Credit reduce as my income rises?

Yes, once your family income passes $44,900. Every dollar above that threshold reduces your entitlement by 27.5 cents, applied to your combined Family Tax Credit and In-Work Tax Credit entitlement together, not to each separately (Inland Revenue, retrieved 9 September 2026).

What counts as a dependent child for the Family Tax Credit?

A child under 18 who is financially dependent on you and lives with you for at least a third of a four-month period, where you are the principal caregiver, subject to New Zealand's residency requirements (Inland Revenue: Working for Families eligibility, retrieved 9 September 2026). Shared care arrangements can split the credit between two caregivers.

Can I get the Family Tax Credit and the In-Work Tax Credit at the same time?

Yes, if you meet both sets of criteria: the Family Tax Credit's general eligibility test, and the In-Work Tax Credit's requirement that you are in paid work and not receiving a main benefit (Inland Revenue, retrieved 9 September 2026). Our In-Work Tax Credit guide covers that separate test in full.

Can I get the Family Tax Credit if I'm on a benefit, NZ Super or ACC?

Yes to all three. Inland Revenue's own comparison table confirms the Family Tax Credit stays payable alongside a main benefit, a student allowance, New Zealand Superannuation, paid parental leave and ACC earnings-related payments (Inland Revenue: Government payments that affect your Working for Families, retrieved 9 September 2026). The one exception is the unsupported child's benefit, which blocks a Family Tax Credit claim for that specific child only.

Whether a government payment you already receive blocks a Working for Families credit depends on which credit, and the table below sets out the Family Tax Credit column of Inland Revenue's own comparison.

You already receive	Still qualify for Family Tax Credit?
Main benefit	Yes
Student allowance	Yes
New Zealand Superannuation	Yes
Paid parental leave	Yes
Unsupported child's benefit	No, for that child
ACC earnings-related payments	Yes

(Inland Revenue: Government payments that affect your Working for Families, retrieved 9 September 2026.)

What happens to the Family Tax Credit if my family situation changes during the year?

Inland Revenue adjusts your entitlement whenever your family income, the number of dependent children, or a shared-care arrangement changes, rather than waiting until the end of the tax year (Inland Revenue, retrieved 9 September 2026). You are expected to tell Inland Revenue about these changes as they happen, since an unreported change can lead to an overpayment you later have to repay.

Do I get the Family Tax Credit from the day my baby is born?

Your entitlement is based on your dependent child living with you for at least a third of a four-month period, so a baby born partway through the year is added to your Working for Families assessment from the date they arrive, rather than backdated to the start of the tax year (Inland Revenue: Working for Families eligibility, retrieved 9 September 2026).

What the Family Tax Credit does not cover

The Family Tax Credit is one payment inside a wider system, and the table below shows where the other pieces sit.

What you need	Where it is covered
The main Working for Families payment, any employment status	This page (Family Tax Credit)
The extra payment for working families	In-Work Tax Credit NZ
The payment for children under 3	Best Start payment NZ
Help with approved childcare fees	Childcare Subsidy NZ
The full Working for Families system	Working for Families NZ

QuoteHub built this cluster because the Family Tax Credit, Best Start and paid parental leave land in the same 12 months and use three different eligibility tests. Once you have a clear picture of ongoing household income, that is usually when families revisit their life insurance or income protection cover, since none of these payments replace an income if a parent dies or cannot work, and how much life insurance new parents actually need is the next question most people have once the Working for Families numbers are settled. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name. If you would like a licensed adviser to review your cover, start a free comparison.

The Working for Families overview is the place to start if you have not applied for any of these payments yet, and Inland Revenue's own estimator is the fastest way to check your household's actual figure once you know which credits apply. The In-Work Tax Credit is the payment most families check alongside this one, and Best Start becomes relevant once paid parental leave ends. If you are still working out how long you are entitled to be off work in the first place, parental leave in New Zealand covers the leave entitlement itself, separate from any of these payments. If you are budgeting for a return to work, the Childcare Subsidy and our cost of raising a child in New Zealand guide put real numbers against these payments, adding a baby to health insurance in New Zealand covers each insurer's enrolment window, the new parent insurance checklist works through cover in order, and the new baby checklist sets out everything in the order most families need it.

Adviser's view

The step QuoteHub sees families skip is checking the abatement math before assuming they earn too much. The credit reduces by 27.5 cents for every dollar over the $44,900 threshold, not a cliff, so a family well above the threshold can still be entitled to a partial payment worth doing the sum for.

Henry Smith, Financial Adviser (FSP1010699). General information, not personalised financial advice.

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Cite this page QuoteHub NZ (2026). Family Tax Credit NZ 2026: Rates and Who Qualifies. www.quotehub.co.nz/guides/new-baby/family-tax-credit-nz. Updated 2026-09-09.