In his annual address on February 22, 2025, the Prime Minister of Hungary announced significant changes to the country’s taxation system, focusing on families with children. As published in the Official Hungarian Journal on May 12, 2025, new personal income tax exemptions will be introduced for mothers raising two or three children.
Mothers with three children will already benefit from full tax relief from October 2025, while those with two children will see a phased introduction beginning in January 2026. Eligibility conditions will closely mirror the rules applied to mothers with four or more children, ensuring fairness and continuity in family tax policy.
The exemption primarily applies to wages, while other income types remain taxable. The measure is designed to provide greater financial stability for families, encourage child-rearing, and recognize the contributions of mothers to society.
The gradual roll-out will extend eligibility step by step, eventually covering mothers of all age groups by 2029. This reform marks a major milestone in Hungary’s family-friendly tax policies, offering meaningful support to households with two or more children.
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