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New tax cuts to benefit hundreds of thousands of mothers in Hungary
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National Economy Minister Márton Nagy detailed the fiscal impact of recently announced tax cuts for mothers with children in a social media post on Tuesday.
Tax cuts and tax exemptions for mothers
A table in the post shows that personal income tax exemptions for mothers under 30 with one child will reduce central budget revenue by HUF 40bn (EUR 100m) in 2026. The measure will affect 55,000-65,000 women.
According to the government’s official site, PIT exemptions for mothers of two children will shave an annual HUF 120bn (EUR 300m) off-budget revenue when the measure is introduced for those under 40 in 2026, impacting 110,000-120,000 taxpayers. The measure will be expanded to 210,000-230,000 tax-paying mothers between 40 and 50 in 2027, reducing budget revenue by HUF 231bn (EUR 575m), and to 210,000-230,000 taxpayers between 50 and 60 in 2028, cutting revenue by HUF 248bn. When the measure is extended to 100,000-110,000 mothers over 60 in 2029, annual budget revenue will decline by HUF 124bn as a result.
A PIT exemption for mothers of three children in force from October 1, 2025 will affect 200,000-250,000 taxpayers and cut budget revenue by HUF 200bn. Exempting mothers getting infant care support from PIT, from July 1, 2025, will affect 20,000-40,000 taxpayers and reduce budget revenue by HUF 10bn. The table shows that a PIT exemption for mothers of four, affecting 65,000-70,000 taxpayers, has a negative impact on the budget of HUF 50 bn each year. A PIT exemption for all Hungarians under 25 reduces budget revenue by HUF 230bn and affects 550,000-600,000 people.
As we wrote today, the latest average wage figures for Hungary shows an increase of over ten percent, details HERE.
As our Politicians fawn over Mr. Musk´ s DOGE antics and all the “Savings!” in the US … I believe they would agree it is so important to continuously and objectively assess effectiveness (objectives being met?), efficiency (resources used wisely?) and impact (short- and long-term effects?).
So – lets see how things are going (based on KSH / Hungarian Central Statistical Office data – https://www.ksh.hu/?lang=en ):
“Between February 2024 and January 2025, 77,200 children were born, 8.5 percent fewer than in the previous 12 months, while 128,284 people died, or 0.1 percent fewer than in the previous year. During this period, 46,479 couples got married, 8.1 percent fewer than in the previous 12 months.”
https://dailynewshungary.com/shrinking-hungary-population-birth-death/
And last but not least: lets consider sustainability (will the benefits continue after the tax cuts end?).
Looking forward to any input!