Hungary’s family tax system is expanding year by year, with the tax allowance for families with two children doubling in recent years. This year, it represents a savings of HUF 40,000 per month, and two major tax innovations that directly affect families will also come into effect.
As part of the Family Protection Action Plan, mothers with four or more children will no longer be required to pay personal income tax. The discount applies to biological, adopted and adult children, and from July onwards, all those eligible will be entitled to the full contribution.
The ministry of finance estimates that around 40,000 women will be eligible for maternity tax relief this year, with a combined figure of around HUF 20 billion.
Not only will the burden of tax administration be reduced from July 1, but the family tax relief system will become even more favorable for all Hungarians in 2020.