Mothers of three in Hungary began receiving higher take-home pay this week after the government’s latest tax relief measure came into effect.
Under the new policy, personal income tax is no longer deducted from their salaries, allowing eligible women to retain their full gross income with expected average monthly gains of 109,000 Hungarian forints (€283), according to calculations by the Oeconomus Economic Research Institute.
The initiative, announced by Prime Minister Viktor Orbán earlier this year, is part of what he described as “Europe’s largest tax reduction program.” As of Oct. 1, 2025, all mothers raising three children are exempt from paying personal income tax on income earned from work. The government estimates the measure will affect between 200,000 and 250,000 mothers, amounting to roughly 200 billion forints (€519 million) in annual tax savings across the country.
As reported by Magyar Nemzet, the impact is already visible for many families. Anna, a 43-year-old local government employee and mother of three from a town near Budapest, said her October salary increased by 117,000 forints (€303.50). “We plan to put the money aside and increase our savings,” she told the newspaper.
Krisztina, 55, who works as a manager at a multinational company, reported that her net pay rose by a little over 200,000 forints (€519). Her family, which includes two high school students and one university student, intends to save the extra income toward replacing their car and strengthening household savings.
The National Tax and Customs Administration clarified that the exemption applies to any woman who currently receives a family allowance for at least three children, or who did so for at least 12 years. The benefit applies regardless of the children’s ages or whether the mother is receiving other forms of family support.
Eligible income includes wages from employment, self-employment, and primary agricultural production, but excludes capital income such as dividends, rent, or exchange rate gains. The government has emphasized that the exemption is designed to reward working mothers, reflecting what officials describe as a “value-based” message of appreciation for those raising multiple children.
The measure builds on previous phases of Hungary’s family-friendly tax policy. Since 2020, mothers of four or more children have already been exempt from income tax, while people under 25 and mothers under 30 also enjoy full exemptions. From 2026, the benefit will gradually expand to mothers with two children, starting with those under 40, before extending to older age groups through 2029.
Officials expect the tax cuts to boost household spending and support economic growth, while reinforcing the government’s long-standing demographic strategy to strengthen traditional family structures.
