Speaking on public broadcaster M1, Zsófia Koncz, State Secretary for Families at the Ministry of Culture and Innovation, said the increase comes alongside what the government describes as Europe’s largest tax reduction programme.

One of the most significant measures is the expansion of personal income tax (PIT) exemptions for mothers. From January, around half a million mothers became exempt from paying PIT. Over the next three years, the exemption is set to cover all mothers with two children.

According to Koncz, around 250,000 mothers with three children and 120,000 mothers under 40 with two children are currently eligible. The scheme has also been extended to mothers under 30 with one child. Mothers with three or more children only need to submit a declaration once to qualify, and many have already done so.

More than 70,000 mothers have applied for the benefit via the online platform of Hungary’s National Tax and Customs Administration (NAV), while others can request the exemption through their employer.

The tax-free status for mothers with four or more children was introduced in 2020. This was followed by PIT exemption for under-25s in 2022, benefits for mothers under 30 in 2023, and an extension to mothers with three children last year. From this January, mothers under 40 with two children also qualify.

The exemption for mothers with two children will be phased in gradually, as there are an estimated 690,000 women in this category.

The government plans to continue expanding the scheme until 2029. From next January, mothers under 50 with two children are expected to become eligible, followed by those under 60, and eventually those over 60.

Koncz said the measures reflect what she described as a family-focused economic policy, alongside ongoing home-creation schemes and the expansion of nursery places to support parents returning to work.

In her remarks, the state secretary also criticised the opposition Tisza Party, arguing that family benefits would be at risk under a different administration. She further claimed that proposed EU-level financial contributions related to support for Ukraine could cost Hungarian households an estimated HUF 1.4 million each if implemented domestically, a position the Hungarian government opposes.

Speaking separately on Kossuth Radio, Koncz said the government considers the family support system built over the past 15 years to be stable and sustainable, and argued that its continuation depends on maintaining the current policy direction.

For expat families living and working in Hungary, these changes may be particularly relevant where one parent qualifies for Hungarian tax residency, as eligibility for PIT exemptions depends on individual circumstances.

MTI Stock Photo - for illustrative purposes only

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