Zsofia Koncz: We Don’t Spend Hungarians’ Money to Fund War

The Orban government has built Europe’s largest family support system in recent years, transforming the tax code to favor families. It has also rolled out a range of housing support programs and expanded the nursery network. Recent weeks have shown, however, that while family tax cuts remain in place, a single misstep under a left-wing government could trigger family tax hikes aimed at satisfying Brussels’ demands.

State Secretary Zsofia Koncz (Source: Facebook)

“We believe in supporting Hungarian families, which is why the government today spends five times more on families than it did in 2010,” Zsofia Koncz told our newspaper, referring to 

the Orban government’s implementation of Europe’s largest family tax reduction program.

The secretary of state in charge of families emphasized that, while many countries have imposed austerity measures in recent years, Hungary has continued to protect and support families despite the war in Ukraine and its negative economic impacts.

This is reflected in  

the government’s more than thirty measures aimed at easing life for couples raising or planning children. This year, Hungary launched Europe’s largest family tax reduction program.

– “A family-friendly tax revolution is unfolding in Hungary. Thanks to this, from 2026, half a million mothers will be exempt from personal income tax, and by 2029, that number will rise to one million — a world-first,” the secretary of state highlighted.

Photo: AFP

Mothers Receive PIT Exemption 

This includes maternity and child care benefits (CSED and GYED) as well as personal income tax exemptions for mothers of two or three children, rolled out in phases. The exemption for mothers of three children began on October 1.

From January 2026, mothers of two children under 40 will also receive income tax exemption, affecting 120,000 mothers. Over four years, this will gradually extend to all mothers of two children. Additionally, in 2026, tax exemption for mothers under 30 will be further expanded to cover all income. On January 1, the family tax allowance will increase by another 50 percent, effectively doubling it in the steps over the course of just six months. 

– the state secretary emphasized. In practice, this means that single-child mothers under 30 will keep an extra 129,000 forints per month, mothers of two children under 40 will have 189,000 more, and families with three children will already retain over 300,000 forints monthly, she added.

Zsofia Koncz noted that, through Europe’s largest family tax reduction program alone, 

the government will spend 4,000 billion forints on Hungarian families over the next four years.

– “Beyond that, the 2026 budget allocates an unprecedented 4,800 billion forints to family support, which equals 5 percent of GDP,” she emphasized.

Support for Home Ownership

In addition to tax allowances and income tax exemptions, the family support system also makes major efforts to assist young people in homeownership. In September, a new low-interest mortgage program, the Home Start Program, was launched. Interest in the program has been strong from the outset, as the state-backed mortgages with a fixed 3 percent interest rate were previously only available to couples having children.

Importantly,

the Home Start program can be combined with existing housing support schemes, including all forms of the CSOK. 

Ms. Koncz noted that the program’s success is reflected in data showing that since 2015, one in six property transactions has involved some form of CSOK support. Families have responded very positively to these opportunities, and in towns with fewer than 5,000 residents, even the elderly can access support through the Rural Home Renovation Program.

Photo: AFP

Balancing Work and Family

The government has also prioritized ensuring that parents returning to work do not face difficulties with daytime childcare. To this end, significant expansion of the nursery network has taken place. While in 2010 there were only 32,516 nursery places, today there are over 70,000.

Currently, nursery care is available in nearly 1,260 settlements, and over 900 towns that lacked nurseries in 2010 now have access. 

Financial support for families with young children includes nursery fee subsidies, which can amount to 50,000 forints per month, or up to 65,000 for single-parent families. To support this, in September 2024 the government launched a 6.6 billion forint program funded by EU and domestic sources, later supplemented with an additional 6.65 billion forints from the national budget. The program has now been extended through June 30, 2026.

Speaking to our newspaper, Ms. Koncz emphasized that — instead of the Tisza party's leaked tax hikes package — the government thinks further family tax reductions are needed.

Tisza's package would shake families to the core: their leaked plans include abolishing the family tax system, eliminating low tax rates, cutting family allowances, removing childcare benefits, and even ending free pediatric care.

– “Unlike the left, we believe in leaving more money in the hands of families, letting them decide how to spend what they have earned honestly. We do not want to spend Hungarian taxpayers’ money on funding war, Ukraine, or the migration pact — we want to spend it on Hungarian families,” the secretary of state concluded.