Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — figures refreshed at the start of each tax year.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Family Income (NZ$)
NZ$70,000
Number of Dependent Children
2
Youngest Child Age
Under 3
Are You In Paid Work?
Yes — 20+ hrs/wk (couple) or 20+ hrs sole parent
After entering these figures, review annual wff tax credits, weekly payment and fortnightly payment together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Annual WFF Tax Credits
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Weekly Payment
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Fortnightly Payment
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Max Family Tax Credit
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Max In-Work Tax Credit
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Abatement
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
Working for Families (WFF) is New Zealand's primary in-work support package for families raising dependent children, administered by Inland Revenue under the Tax Credits Legislation Act. The two main components modelled in this calculator are the Family Tax Credit (FTC) and the In-Work Tax Credit (IWTC). The FTC is available to all eligible families with children under 18 in full-time education, regardless of work status. The IWTC is an additional credit for families in qualifying paid employment — couples working 30 combined hours or sole parents working at least 20 hours. For 2024/25, both credits begin to abate at NZ$42,700 of annual family income, reducing at 27 cents for each dollar above that threshold until the credits are fully phased out.
This calculator uses the 2024/25 maximum rates set by IRD and applies the abatement to give an indicative annual, weekly, and fortnightly entitlement. The youngest child's age affects the first-child FTC rate, while each additional child adds NZ$5,240 to the maximum entitlement. Note that this tool does not include the Best Start payment (for children under 3), the Minimum Family Tax Credit, childcare subsidy, or accommodation supplement — all of which are separate entitlements that may apply to your family. For a complete picture of your support entitlements, use IRD's official WFF calculator at ird.govt.nz or speak with an IRD advisor, especially if your income fluctuates throughout the year.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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End-of-article next steps
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