The Hungarian government is continuing what it describes as Europe’s largest family tax reduction programme from 1 January. The new package introduces further tax relief and support measures for families, the Ministry of Culture and Innovation said in a statement.
In a year-end video message, Minister for Culture and Innovation Balázs Hankó said the new steps build on a family-friendly tax policy that has been developed over more than 15 years. The ministry noted that while significant measures were already implemented in 2025, further support will follow in 2026.
Last year, the family tax allowance was increased by 50 per cent, while maternity benefits such as CSED and GYED, as well as adoption allowances, were made exempt from personal income tax. From October, mothers raising three children also became eligible for a full income tax exemption.
As the second phase of doubling the family tax allowance, parents will now be entitled to 20,000 forints per month for one child, 80,000 forints for two children, 198,000 forints for three children, and an additional 66,000 forints for each further child. The increase also applies to the additional allowance granted to families raising children with chronic illness or severe disabilities.
The scope of income tax exemptions for mothers is also being expanded. From 1 January, mothers under the age of 40 with two children will no longer be required to pay personal income tax. In addition, the upper income limit for tax exemption for mothers under 30 will be abolished.
The ministry highlighted that the recent rise in the minimum wage will automatically increase the amount of several benefits. These include GYED, graduate GYED, foster parent GYED, grandparent GYED, adoption allowances, child nursing sick pay, home care benefits for children and the advance payment of child support, all of which will rise by 11 per cent.
From the start of the new year, the rules governing child adoption will also be simplified, allowing children to be placed with adoptive families through faster and more efficient procedures.
‘From the start of the new year, the rules governing child adoption will also be simplified’
Beyond family policy, the government reaffirmed its commitment to supporting national culture and preserving Hungary’s intellectual heritage. Employees performing public cultural duties will receive a permanent 15 per cent pay rise from 1 January 2026, affecting around 41,000 workers in the cultural sector.
Wages for the 24,000 instructors working in vocational training will also increase by an average of a further 10 per cent from January, supported by 32 billion forints in domestic budget funding. The pay rise applies to all vocational institutions, regardless of whether they are state-, church- or university-run.
Since the restructuring of vocational training in 2020, the government has implemented five major wage increases for instructors, resulting in salaries rising to more than two and a half times their previous level, the statement said.
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