Mothers with four or more children will also remain exempt.

As part of the economic action plan, the government plans to double the tax allowance for children in two phases: from July 2025 and from January 2026, kormany.hu reported.

It was written on the government portal: a family with two children can count on a tax discount of HUF 30,000 next year, and HUF 40,000 in 2026, instead of the current HUF 20,000 per month.

Since the introduction of the family tax allowance, together with next year's increase, families with children will have HUF 4,400 billion more

says the announcement.

According to the information, the family tax discount is one of the main pillars of the family tax system introduced in 2011, in addition to the low tax rate. The government supports working parents with the family tax discount. The more children a Hungarian family has, the greater the tax discount the parents receive, they pointed out.

Today there is a family tax allowance of HUF 10,000 for one child, HUF 20,000 for two, and HUF 99,000 for three. First, from July 1, 2025, the amount of the tax discount will increase to HUF 15,000 for one child, HUF 30,000 for two children, and HUF 49,500 for three or more children. Then, from January 1, 2026, the amount of tax relief will increase to HUF 20,000 for one child, HUF 40,000 for two children, and HUF 66,000 for three or more children.

The parents can still share the family tax allowance among themselves, so they can benefit from the largest possible amount of tax relief, they wrote.

It was emphasized that mothers with four or more children will also remain exempt from social insurance.

In a household with three children, thanks to the increase, the family can have about HUF 200,000 more money per month, which they can spend on raising the children.

The discount can be used during the year, with a tax advance statement given to the employer, or in the tax return for the tax year, they explained.

Added:

those raising a chronically ill or severely disabled child can use the family tax allowance in an amount increased by HUF 100,000 from July 1 of next year, and HUF 133,340 from 2026.

The family tax discount can be used by an individual who is entitled to family allowance, parents who take turns caring for their child after divorce, a spouse living in the same household as the person entitled to family allowance but not entitled to family allowance, a pregnant woman and her spouse living in the same household as her, as well as the family a child entitled to an allowance in his own right, and a private individual receiving a disability pension.

The family tax discount is available from the earliest when the fetus is 91 days old - this requires a medical certificate of prenatal care. The discount usually applies until the child is 16 years old, which can be longer if the child attends a full-time secondary school

they noted.

In the announcement, the family tax allowance was now called one of the most important elements of family support. They indicated: the doubling of the discount is included in the 21-point new economic policy action plan, in the 2025 budget, and can be supported by anyone in the current national consultation as well.

MTI

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