Europe’s Largest Tax Reduction Program has been Launched
Balázs Hankó, Minister for Culture and Innovation; Zsófia Koncz, State Secretary for Families; Katalin Kardosné Gyurkó, Ministerial Commissioner for Intergenerational Cooperation; and Tünde Fűrész, President of the Kopp Mária Institute for Demography and Families (KINCS), held a joint press conference to announce the first three measures of the new family tax reduction program, which come into force today.
Balázs Hankó stated that the family tax allowance is increasing by 50%, the CSED Extra is being launched, and the infant care fee (CSED), the child care fee (GYED), and the adoption fee are now exempt from personal income tax—providing unprecedented support for families raising children. The minister noted that compared to 2010, funding allocated to families has increased fivefold, and the budget for families now reaches HUF 4,800 billion, equivalent to 5% of Hungary’s GDP. Thanks to Europe’s largest family tax reduction program, between 2026 and 2029, approximately HUF 4,000 billion will remain with families.
Zsófia Koncz highlighted that the tax exemption of the infant care fee (CSED) alone leaves roughly HUF 500,000 with families raising children, while in the case of GYED this amount can reach HUF 780,000. Altogether, by the child’s second birthday, families with young children can retain approximately HUF 1.2 million more in income, benefiting tens of thousands of families. The 50% increase in the family tax allowance means that families will retain an additional HUF 15,000 per month with one child, HUF 60,000 with two children, and HUF 148,500 in total with three children. The increased allowance will be granted automatically to the vast majority of parents and will be disbursed in August.
Tünde Fűrész presented KINCS’s latest research, which shows that Hungarians support the elements of the family tax reduction program. The President of KINCS stated that 95% of respondents believe it is important for parents to have earned income and consider it fair that parents raising children receive more money through family tax reduction. Regarding mothers’ tax exemption, 96% of respondents found it important for mothers to feel financially secure, and 82% believe that having a child should not entail a financial setback.
The research is available here:
https://www.koppmariaintezet.hu/docs/KINCS_Adocsokkentesi_program_20250407.pdf
The head of our institute emphasized that the new family tax reduction program and the increase of the family tax allowance are helping to close the income gap between families. Even families with lower incomes can now fully benefit from the tax allowance.
Katalin Kardosné Gyurkó emphasized that reaching and retaining young people is essential—losing them would mean losing the future. The Ministerial Commissioner for Intergenerational Cooperation stressed that the family, as a community of love, is irreplaceable and cannot be substituted by any virtual environment. She also warned that a lack of knowledge about the past makes the next generation more vulnerable.
