Next year, the family tax allowance will be doubled in two steps. We show you how much more will be left in your wallet if you take full advantage of the family tax discount!

The inflation experienced in recent years did not spare Hungarian families either, and the government is aware of this fact. The cabinet would leave more money in family coffers by increasing the family tax allowance, or more precisely by doubling it. The measure may affect approximately one million Hungarian households, Ripost reports.

What is family tax credit?

The family tax allowance is a tax allowance with which the consolidated tax base of the person entitled to it is reduced, i.e. the net salary of the person entitled to it increases due to the allowance, but at the same time the gross salary does not change. The net salary 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.

The amount of the family tax allowance today, on a monthly basis, depending on the number of dependent children:

  • In the case of 1 dependent, 10,000 forints per child, i.e. 10,000 forints per month today
  • In the case of 2 dependents, 20,000 forints per child, i.e. 40,000 forints per month today
  • In the case of 3 or more dependents, HUF 33,000 per child per month.

With the increase outlined by the Prime Minister, the monthly net 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, i.e. HUF 80,000 per month. In the case of three children, according to the doubling, the amount 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.

How old are you?

In 2024 - and thus also expected in 2025 - the family tax allowance generally applies from the age of 91 days until the child reaches the age of 16 at the earliest. In addition, the discount is available to the parent as long as the child is studying in a full-time public education institution, up to the graduation. After that, if the child has a younger sibling who is considered a beneficiary from the point of view of the family tax allowance, then the older sibling can still be taken into account when it comes to the number of dependents, for example for the family allowance.

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