It was voted: Next year, the tax allowance for families raising children will increase

Starting next year, the tax allowance for families raising children will increase in two stages, the parliament decided on Tuesday. Based on the amendment of the tax laws, part of the money transferred to the SZÉP card can also be used for home renovation, the employer can also provide rent subsidies, and in the future, several types of taxes will increase every year with the rate of inflation.

The Parliament adopted the law on the amendment of certain tax laws with 114 yes votes, 42 no votes and 8 abstentions.

In the second half of 2025, the family discount for those raising one child will be HUF 100,000 per month, those raising two children will be HUF 200,000, and those raising three or more children will be HUF 330,000. From January 1, 2026, the amount of the discount will be HUF 133,340 for one dependent, HUF 266,660 for two dependents, and HUF 440,000 for three and all additional dependents.

Parents of chronically ill or severely disabled children can use the family discount in an amount increased by HUF 100,000 from the first of July next year, and HUF 133,340 from 2026.

The rules for applying the tax credit for children have not changed.

The rules for optional itemized flat-rate taxation for paying catering activities are being changed. This taxation can be used if the private individual carries out this activity in a maximum of three properties classified as private accommodation that he owns and benefits from.

In the future, the amount of tax to be paid will be determined by the number of guest nights tourists spend in the given settlement based on data from the Central Statistical Office. Above two million guest nights, HUF 150,000 must be paid per residential room per year, while below two million guest nights, the tax rate remains unchanged at HUF 38,400

It will be possible to use 50 percent of the employer subsidy given to the SZÉP card for home renovation purposes; In 2025, the use of the amount accumulated in voluntary pension fund accounts for housing purposes will be considered tax-free.

As of January 1, the employer can transfer up to HUF 150,000 per month, i.e. a maximum of HUF 1.8 million per year, as a non-wage benefit, for sublet rent or housing loan installments to employees under the age of 35.

Until the end of 2026, newly built residential properties can still be sold at a reduced VAT rate of five percent, but in the case of ongoing construction, this VAT rate can be applied until December 31, 2030.

The start date of e-receipt issuance has been postponed from January 1, 2025 to July 1, 2025 in order to ensure adequate time for preparation.

From now on, many types of taxes will increase every year by the rate of the previous year's average inflation, including excise tax. In the case of tobacco products and some energy products, where tax rates will increase from 2025, the valorization will only start from 2026.

Starting next year, the company car tax will increase by roughly 20 percent, and with the amendment to the law, an inflation-tracking valuation rule will come into effect in both the vehicle tax and the company car tax. The registration tax will also be adjusted to these rules, so as of January 1, 2025, the tax exemption and tax discount previously applied to plug-in hybrid and hybrid vehicles will also cease for this type of tax.

The toolbox of the tax office is further expanded, the data reconciliation procedure is introduced, which starts when the data provided by the taxpayer and the data of the tax effect do not overlap.

In the case of the retail tax, the range of those liable to pay the tax is expanded to include those whose platform domestic retail sales take place.

MTI

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