No Income Tax for Mothers with 2 or More Children: Hungary Govt
Hungary grants lifetime tax exemption for mothers with two or more children, effective October 2025 for three children and January 2026 for two children
The Hungarian government has announced a lifetime tax exemption for mothers with two or more children. This new tax relief will take effect in October 2025 for women with three children and in January 2026 for those with two children. Prime Minister Viktor Orbán made this announcement during his annual State of the Nation speech in Budapest. This initiative extends the existing benefit...
The Hungarian government has announced a lifetime tax exemption for mothers with two or more children. This new tax relief will take effect in October 2025 for women with three children and in January 2026 for those with two children.
Prime Minister Viktor Orbán made this announcement during his annual State of the Nation speech in Budapest. This initiative extends the existing benefit that already exempts mothers of four or more children from paying income tax.
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According to Economy Minister Marton Nagy, the tax exemption for mothers with three children will cover approximately 250,000 people and cost the budget 170 billion forints ($441 million) annually. The existing exemption for around 70,000 mothers of four costs 50 billion forints each year
Orbán described the tax reduction as the largest in Europe, asserting that economic revival and full employment will offset the costs while reducing public debt and the deficit. Hungary's inflation, once the highest in the EU, continues to be a huge challenge. In January, inflation rebounded to 5.5%, surpassing analyst expectations. Monthly price growth also surged to its highest level in two years, driven by rising costs of food, services, and fuel.
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As consumer prices climb, Orbán warned that the government may impose price controls if talks with retailers fail to keep costs in check. He also indicated a willingness to cap food retail profits as a last resort.
With Hungary's economy under strain, Orbán's latest policies appear designed to increase public support ahead of the election. His government is focusing on financial relief for families and home buyers while signaling a tough stance on inflation.
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Several other countries have recently announced tax exemptions for mothers, including France, South Korea, and Russia. Low birth rates have prompted governments to incentivize motherhood to boost their demographics. As global fertility rates continue to decline, other countries are expected to adopt similar tax-friendly policies for mothers.
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