Further tax relief taking effect from today in Hungary!

Families with children will benefit from additional tax relief from Jan 1, with the family tax allowance increasing by a further 50 percent and mothers under 40 with two children becoming exempt from income tax, the culture and innovation minister said in a social media post on Wednesday.

Further family tax relief for families

For those on an average salary, the latter measure will mean an extra 109,000 forints in monthly take-home pay, while mothers under 30 will be fully exempt from tax on their entire income, Balazs Hanko said in a video statement posted on Facebook.

These steps continue the government’s family-friendly tax policy which has been developed over more than 15 years, he added.

He noted that the family tax system has been steadily expanded, with mothers of four or more children already exempt from income tax. Since July, the family tax allowance has been increased by 50 percent, and childcare allowance, maternity benefit, and adoption subsidies have also been made tax-free. From October, mothers with three children were granted tax exemption.

Minister did not forget to mention Tisza Party’s alleged austerity package

“The national government has chosen a policy of tax reduction. Working parents face less burden, and families get to keep more of their money,” the minister said.

In contrast, he added, the left always pursued tax increases and was preparing to do so again. Hankó said the opposition Tisza Party’s austerity package would impose severe tax hikes on families with children, dismantle the family tax system, and cut benefits, burdening working parents with higher taxes.

“In the National Consultation, Hungarians clearly rejected these Brussels-backed left-wing tax rises and stood by the government’s family tax cuts,” he said.

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Featured image: depositphotos.com