A New Era in Family Support
On July 1, Europe’s largest family tax reduction program was launched, marking another milestone in Hungarian family policy. This comprehensive package of measures aims to provide financial advantages for families raising minor children, thereby strengthening their financial stability and long-term planning capabilities. As the first step of the program, three measures will take effect in July: the personal income tax exemption of the infant care fee (CSED) and the child care fee (GYED), the introduction of CSED Extra, and an increase of one and a half times in the amount of the family tax allowance. These represent an unprecedented level of support for families caring for and raising children.
As part of the family tax reduction program, from July 1, 2025, the monthly amount of the family tax allowance will increase by 50%, resulting in a monthly benefit of HUF 15,000 for one child, HUF 60,000 for two children, and a total of HUF 148,500 for three children. In the second phase of the program, starting January 1, 2026, the allowance will double, providing HUF 20,000 for one child, HUF 80,000 for two children, and HUF 198,000 for three children. The increased allowance will also be applicable to social security contributions.
Beginning July 1, new measures will also support families with young children. From this date, the infant care fee (CSED), the child care fee (GYED), and the adoption fee will all become fully exempt from personal income tax. This means that mothers receiving CSED will receive their previous gross salary as a net amount—regardless of their age or how many children they have. GYED will be subject only to the 10% pension contribution. The tax exemption will apply to all forms of GYED and will be available not only to mothers, but also to fathers and grandparents if they claim the benefit. In this way, the infant care period will no longer represent a financial setback but rather a financial advantage for families.
The introduction of CSED Extra may bring further important changes. Modeled after the previously successful GYED Extra, this new measure allows mothers to return to work once the child reaches three months of age while continuing to receive 70% of the CSED—tax-free—in addition to their salary.
Another key milestone in the family tax reduction program will be reached on October 1, 2025, when mothers with three children will become eligible for lifelong personal income tax exemption. Mothers with two children will be gradually granted income tax exemption in four phases starting January 1, 2026. Additionally, from the beginning of next year, mothers under the age of 30 will be eligible for full personal income tax exemption on their entire income.
These new tax reduction measures—supported by four-fifths of the Hungarian population, according to surveys—provide families with an unprecedented level of financial assistance, making childrearing more secure and the future more stable and predictable. Through the program, one million families will benefit from the increased family tax allowance, and from 2026 onward, half a million—and by 2029, one million—mothers will be entitled to full personal income tax exemption, contributing to the reduction of the gender pay gap as well.
