While the family tax allowance will double and the government supports cheaper housing, the capital and the left-wing city administration will raise rent, taxes, and parking fees.
The government is planning a number of measures to make life easier for families in 2025, and this is reflected in the 2025 budget adopted in December. The family tax allowance will be doubled in two steps: in the summer of this year and in January 2026.
The measure affects one million families and 1.7 million children.
After doubling the family tax allowance:
- the amount that can be used per child will increase from HUF 10,000 to HUF 20,000
- for families with two children, from HUF 40,000 to HUF 80,000
- while for families with three children, the monthly net amount will increase from the current HUF 99,000 to HUF 198,000.
2025 is the year of wage increases
In next year's budget, HUF 3,876 billion is available for education, which is almost HUF 500 billion more than before. This also guarantees that, after last year's 30 percent wage increase, a 21.2 percent teacher wage increase can be expected in 2025.
This will increase the average teacher salary to HUF 840,000 in 2025, and there is a good chance that the average teacher salary will reach HUF one million in 2027.
The salary increase of civil service workers will also continue, but those working in the fields of water and science policy will receive a significant wage increase, as well as the salaries of judges, judicial workers, and drafters will also increase significantly in 2025.
The employee loan is coming
You can apply for the newly introduced employee loan by the government from January. This gives young workers the opportunity to apply for an interest-free loan of up to HUF 4 million, which can be used freely and repaid over a 10-year term. Those young workers who work at least 20 hours a week as an employee or entrepreneur will be entitled to this.
The government will also significantly expand housing subsidies in 2025.
In addition to a significant tax discount, employers can provide housing support of HUF 150,000 per month to subsidize the rent of their young employees or to pay off their housing loans. Young employees under the age of 35 can take advantage of this opportunity. The 450,000 HUF per year non-wage allowance can still be used, and on top of that there is this separate housing allowance of 150,000 for young people.
On the other hand, the left-wing city administration raises taxes, rent, and parking fees
While the government is looking at how to make life easier for families, the left-wing leadership of the capital is thinking about how to collect even more money from the population in 2025.
From January, residents can expect brutal increases in Terézváros led by Tamás Soproni, Józsefváros led by András Pikó, Ferencváros led by Krisztina Baranyi, Hegyvidék led by Gergely Kovács, XIII. also in the district.
The left-wing districts have successively announced that they will raise the annual residential parking fee, in some places by 18 times, in others by 36 times. In addition, rents and various local taxes payable to the municipality are brutally expensive in some places. The latter mostly affects the Hegyvidék, controlled by the Hungarian Two-Tailed Dog Party. Krisztina Baranyi, who is also a politician in the Kétfarkú Kütyapárt, caused serious problems in Ferencváros. The mayor, like the other left-liberal districts, raised his own salary and that of his deputy mayors right at the first board meeting, and in order to get money for it, they extorted the population.
Life will be more expensive in the ghettoizing Józsefváros
The local government led by András Pikó introduced austerity measures in almost all areas. The district operates from a record budget of HUF 49 billion, yet the mayor takes more and more out of the pockets of the less well-earning districts. It is no wonder that among the left-wing mayors, he was the one who was re-elected with the fewest votes.
In this district as well, the gas prices of city managers have been increased, and in Józsefváros they will also be raised to the maximum according to the law from January:
- the construction tax,
- the land tax
- the communal tax of private individuals,
but the Pikos also decided to raise rents by 30 percent within two years, and then annually thereafter, and this affects the poorest.
They do this because the apartment buildings in Józsefváros are in a catastrophic state. There was a year when as much was spent on the renovation program of district facades as on the construction of a public toilet.
In the meantime, the municipality has been operating as a payment point for years. Reimbursement fees for tests in the district's outpatient clinic for those who do not have social insurance have also been increased.
Hegyvidéki sarc: pensioners and large families can also feel it
In Hegyvidék, Gergely Kovács is dragging down the population, and they are targeting residents with low incomes, pensioners and residents with large families. Motorists who do not have a parking space are also "penalized". It is interesting that, in addition to the taxes imposed on the population, Mayor Gergely Kovács pays more than HUF 120 million per year to consultants and experts. Some of the new people coming to the municipality are politicians from Momemtum and the Hungarian Kétfarkú Kutya Párt.
Here is the extensive list of what to pay:
- Pensioners who have received discounts up to now must also pay the full amount of municipal tax.
- For those who do not have their own parking space and park on the street, it will cost HUF 30,000 per year. Fifteen times as much as before.
- The tax exemption for those living in apartments of 40 square meters or less will be abolished. The pro-dog district administration is preparing for them to pay HUF 15,000 more per year in taxes than people living in apartments over 200 square meters.
- Families with two children living in an 80-square-meter apartment, three children living in a 90-square-meter apartment, and four children living in a 100-square-meter apartment will also have to reach deep into their pockets. They are subject to the same judgment as those who live in luxury apartments and villas larger than 200 square meters.
Price increases in Ferencváros
In Ferencváros, the rental fee for municipal premises and the annual residential parking fee will also be considerably more expensive from January.
The gigantic rise of Terézváros
The current mayor Tamás Soproni, like his left-wing colleagues, did not say a word about the introduction of masks in his election campaign. However, with his board, he raised the building tax for private individuals in time for Christmas, and in parallel with other left-wing districts, he raised residential parking fees 18 times.
These include the annual residential parking fees
In several districts of Budapest, the annual residential parking fee is skyrocketing, following the example of Józsefváros, where it was raised ten times the average a year ago. With this, according to them, 30 percent fewer residential drivers obtained a permit. The districts claimed that they had issued far more permits than there were parking spaces in the given district. On the other hand, they kept silent about the fact that hundreds of them were terminated annually in each part of the city in the past period.
Baranyi's new parking fees for local residents
Motorists living in the area must pay HUF 20,000 per year for their first car, regardless of the zones, in a uniform manner.
There is no longer a discount for the second car per apartment, so the annual fee for the waiting permit is 250 times the hourly parking fee for the given zone.
It also includes the fact that people over 65, pensioners, and large families receive a 50 percent discount on the price to be paid for the first car.
Erzsébetváros, led by Péter Niedermüller, also joined the fee increase, which provides the municipalities with a fat income. In Erzsébetváros, already on the first day, hundreds of people signed the online petition against the huge increase in the annual residential parking fee. Even taxi drivers and service providers avoid this district if they can, due to the illogical changes in traffic patterns and the elimination of parking spaces.
In Erzsébetváros, the annual residential parking fee for the first car will jump to HUF 36,000 from January. The second will cost the local residents 72,000.
The left XIII. public parking will not be free in the district from January.
After the professional organizations, more and more people from Budapest are voicing their indignation. Many people feel that the capital sees the residents as cash cows, who are now being squeezed again with the drastic increase in parking fees. As we previously reported, the Karácsony–Vitézy duo, together with the Tisza Party, decided to raise the price of parking by 30 percent from July 2026, in all zones. In summary, compared to 2021, motorists will pay 60 percent more with the current price increase.
Cover photo: Gergely Karácsony and Krisztina Baranyi don't care much about families
Source: Facebook/Gergely Kárácsony
