"We are launching Europe’s largest tax reduction program," Viktor Orban highlighted in his Saturday annual address, sharing a segment of the speech on his social media page.
We will double the child tax allowance in two steps,
the Hungarian prime minister announced. He explained that the first step will take effect on July 1, and the second on January 1, 2026. Parents will be able to deduct HUF 20,000 (about EUR 50) for one child, HUF 80,000 (about EUR 200) for two children, and HUF 200,000 (about EUR 500) for three or more children from their taxes and contributions. "This affects more than one million families," he added.
The government will also introduce full income tax exemption for maternity (CSED) and child care benefits (GYED). Additionally, mothers with two or three children will be granted a lifelong income tax exemption—effective from October 2025 for mothers of three children, and gradually from January 2026 for those with two children, the PM explained.
This is a global sensation—there’s nothing like it anywhere else,
the prime minister noted.
Viktor Orban acknowledged the program represents a huge expense but stated that the recovering economy, support programs for businesses, and full employment together can generate the necessary funds while simultaneously reducing the budget deficit and national debt
