New Era Dawns in Family Support + Video

Starting in January 2026, another round of historic tax cuts will take effect in Hungary. Mothers under 40 raising two children, as well as mothers under 30, will be fully exempt from personal income tax on their entire earnings. The measure will benefit roughly half a million families, increasing their monthly income by an average of 109,000 forints. At the same time, the doubling of the family tax allowance will continue, leaving even more money at the disposal of families raising children.

Illustration (Source: MTVA / Courtesy of Csaba Jaszai)

Hungary launched Europe’s largest family tax-cut program in 2025, aimed at steadily reducing the financial burden on families with children. Measures introduced in recent months have already brought meaningful relief: as of July, maternity benefits (CSED), childcare benefits (GYED), and adoption allowances have become fully exempt from personal income tax, while from October, mothers raising three children receive lifelong income tax exemption.

Illustration (Source: Pexels)

Expansion 2026 : Support for Two-Child Families and Young Mothers

The next step, taking effect in January 2026, will affect an even broader group of families. The income tax exemption will be extended to mothers under 40 raising two children, while mothers under 30 will receive full tax exemption on their entire income even if they have only one child. The change will affect approximately half a million mothers, increasing their average monthly earnings by 109,000 forints—about 1.3 million forints (approx. €3400) annually for families.

This move is especially important for young families, who often face significant expenses and financial challenges in the early years of child-rearing. The income tax exemption represents substantial financial relief and may contribute to greater stability for young families while encouraging childbearing.

Further Increase in the Family Tax Allowance

The government is not stopping with income tax exemptions. Beginning in January, the amount of the family tax allowance will be doubled. Under the new rules, families will retain 20,000 forints per month for one child, 80,000 forints for two children, and nearly 200,000 forints for three children. This benefit will affect roughly one million families and, over the long term, provide significant financial security for those raising children.

These tax cuts are designed to provide sustainable support not only for today’s families but also for future generations. According to the plans, from 2027 mothers aged 40–50 with two children will also receive tax exemption, followed by those aged 50–60 in 2028, and mothers over 60 in 2029.

Goal: Leaving More Money with Families

The government’s objective is clear: by continuously reducing the financial burdens on families raising children, it aims to ensure that more money remains with households. The program gives parents greater opportunities to cover everyday expenses, invest in education, secure housing, and plan for their children’s future.

These measures also serve broader family policy goals. Greater financial security for young families can increase the willingness to have children, while long-term tax cuts provide stability and predictability for family life.

Further details and specific calculations on the family tax cuts are available at csaladiadocsokkentes.hu .

Cover photo: Illustration (Source: MTVA / Courtesy of Csaba Jaszai)