Lifetime Tax Exemption to Mothers of Three Hailed as Historic Landmark in Family Policy

Zsófia Koncz (R) and Tünde Fűrész (L) during the press conference on 6 October 2025 in Budapest
Mária Kopp Institute for Demography and Families (KINCS)
Hungary has launched a landmark tax exemption for mothers of three children, ending their personal income tax burden permanently. The government hails it as a family policy revolution, while critics dismiss it as electioneering—State Secretary Zsófia Koncz shared details about the measure at a press conference on 6 October.

On 1 October Hungary entered what the government calls a historic new era for families. From now on, mothers raising three children will never again pay personal income tax (SZJA). Officials describe the move as unprecedented in scale, with around 250,000 women potentially eligible.

The measure builds on the 2020 exemption for mothers with four or more children, which already attracted international attention. ‘This is a world-class step,’ State Secretary for Families Zsófia Koncz said at a press conference on 6 October, noting that even Greece and the United States have discussed adopting Hungary’s family policy model.

The exemption is not automatic—families must apply through the National Tax Authority or via employers. Demand is already high: more than 36,000 mothers registered within just five days. For a woman earning 450,000 forints a month, the benefit translates to 60,000 forints extra monthly income—about 720,000 forints per year—on top of existing family tax allowances.

Zsófia Koncz PHOTO: Mária Kopp Institute for Demography and Families (KINCS)

She framed the reform as part of an ongoing tax revolution, with broader exemptions for two-child families under 40 and younger parents with one child planned in coming years. By 2026, the government estimates family support spending will reach 4,802 billion forints, about 5 per cent of the GDP.

Reactions have been polarized. The opposition Tisza Party and other critics dismissed the move as madness and a cynical election ploy. Brussels has also frequently criticized Hungary’s family benefit policies. But government-aligned research shows strong public backing: three-quarters of Hungarians support the exemption, and nine out of ten agree larger families should receive more support.

Koncz also linked the announcement to a new national consultation, asking Hungarians for their views on tax policy, family allowances, energy subsidies, and corporate taxation. Officials argue the policies are essential to shield families from rising costs and ensure long-term demographic stability.

As the family-friendly ‘roadshow’ tours local communities, the administration insists the reform is more than an election-year promise. ’This is about the future of Hungary,’ Koncz stressed, calling the SZJA exemption for mothers of three a milestone in shaping a family-centered society.

Tünde Fűrész PHOTO: Mária Kopp Institute for Demography and Families (KINCS)

President of the Mária Kopp Institute for Demography and Families (KINCS) Tünde Fűrész presented fresh survey data: 91 per cent of Hungarians have heard of the measure. Three-quarters of Hungarians (72 per cent) agree with the exemption, and in every third Hungarian family there is already someone eligible for the benefit. Among under-30s and parents with children, the proportion is even higher.

Hungarians broadly support tax advantages for large families, as most understand that raising several children, while joyful, also comes with greater costs, responsibilities, and sacrifices. Nine out of ten respondents believe that those who raise more children deserve more support. Eight out of ten agree it is fair for larger families to pay less tax, and a majority also supports the idea that mothers of three should remain exempt until retirement. Two-thirds of Hungarians feel that mothers of three are respected in Hungary today.

PHOTO: Mária Kopp Institute for Demography and Families (KINCS)

More about the measure:

Hungary Grants Income Tax Exemption to Mothers with Three Children
Hungary has launched a landmark tax exemption for mothers of three children, ending their personal income tax burden permanently. The government hails it as a family policy revolution, while critics dismiss it as electioneering—State Secretary Zsófia Koncz shared details about the measure at a press conference on 6 October.

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