With the increase, the net monthly income of those with one child would rise from HUF 10,000 to HUF 20,000, and that of those with two children to HUF 40,000 per child. In the case of three or more than three children, according to the doubling, it would rise to HUF 66,000 per month for each child next year. According to the senior analyst of K&H Bank, the program is feasible and timely.

The family tax allowance has now become one of the most important elements of family support, and the government would accordingly double its amount next year, Világgazdaság reports . This is a tax benefit with which the consolidated tax base of the person entitled to it is reduced, i.e. the benefit increases the net salary of the person entitled to it, but at the same time the gross does not change. (The net will be higher at the expense of the 15 percent personal income tax and the 18.5 percent social security contribution.) The amount of the family tax allowance is always determined based on the number of dependents.

From this year's budget, the state spends HUF 320 billion on this, which is supplemented by an additional HUF 52 billion in contribution discounts. Dávid Németh, senior analyst at K&H Bank, said that

approximately one million households, i.e. many, may be affected by the increase in the family tax allowance. It would mean roughly 160 billion forints in extra spending in the budget, which is 0.24-0.25 percent of GDP.

The amount is basically not high in and of itself, but at the same time several factors must be taken into account, the leading analyst pointed out.

Next year, interest expenses may decrease by one percent, which may mean room for maneuver. On the other hand, the state spends a lot on stimulating the economy compared to other member states, as well as on its operation. A lot also depends on whether, in addition to this year's deficit target of four and a half percent, it will be possible to maintain next year's 3.7 percent, or, let's say, raise it by one or two tenths, he opined.

Dávid Németh reminded:

the program is feasible and timely in terms of the magnitude of the amounts, because the family tax allowance has not been touched since its introduction, it has become inflated.

The timing is no coincidence either, the cabinet wants to do this before the 2026 elections, he added.

With the increase, the net monthly income of those with one child would rise from HUF 10,000 to HUF 20,000, and that of those with two children to HUF 40,000 per child. In the case of three children, the maximum amount of the family tax allowance is currently HUF 99,000 per month. In the case of more than three children, there is currently an additional HUF 33,000 per month for each child, so for example, the family tax allowance is HUF 132,000 per month for four children and HUF 165,000 per month for five children. According to the doubling, this would rise to HUF 66,000 per month for each child next year.

At the same time, since this depends on income, not all families can use the maximum amount of the discount even now. It is also worth noting that the Prime Minister spoke of a two-step increase, so the more likely scenario is that the full increase, i.e. the doubling, would come into effect from 2026, Magyar Nemzet observed.

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