Hungary unveils “largest tax cut in Europe” with record support for families and pensioners
Hungary will not give up on any of its goals, Márton Nagy, the national economy minister, said in a post on social media on Friday, adding that everything that the prime minister announced in his speech assessing the past year in February will be implemented in the 2025 and 2026 budgets.
In a statement, Nagy’s ministry said that the 2026 budget “contains the largest tax reduction programme in Europe, built on peace”, it provides special support for families and pensioners, and promises significant wage increases, in order to leave Hungarians with more, so that everyone can take another step forward in 2026.
The ministry said the government in the 2026 budget is supporting Hungarian families “to a greater extent than ever before”, with the total amount of family benefits reaching 4,800 billion forints (EUR 11.9bn).
Within spending on family benefits, the PIT exemption for mothers of three and two children is expected to leave families with an extra 50 billion forints this year and increase by 270 billion forints in 2026 to 320 billion forints. The doubling of the family tax credit will amount to around 80 billion forints of support this year and grow by 210 billion forints to over 290 billion forints next year, the ministry added.
Hungary’s system of regulated household utility prices will be preserved next year as well, and through this system, families will receive an additional 800 billion forints of support, the ministry said.
“Families are also playing an increasingly important role in financing the Hungarian state: next year, more than 800 billion forints of interest payments will be paid to the Hungarian population and families,” the ministry noted.
The ministry said, “Supporting our retired compatriots is of special importance, which is why the government will preserve the real value of pensions and the 13th month pension. A total of HUF 7,700 billion (EUR 19 billion) will be paid out as pension benefits in 2026.”
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