DeKalb GA News

Hungarian Prime Minister Viktor Orbán has announced significant tax cuts aimed at mothers with multiple children. During his state-of-the-nation address, Orbán outlined plans to expand the country's lifetime income tax exemption for mothers, which currently applies to those with four children, to include mothers with three and two children.

According to European Conservative, "Most of the new measures are meant to help families raise more kids, with the most important new element being the expansion of the country’s unique lifetime tax exemption from mothers of four to those with three and two children." Starting in October this year, Hungarian mothers with three children will receive a lifetime income tax exemption. This policy will extend gradually to cover mothers with two children beginning in January 2026. The initiative is expected to impact approximately 250,000 families with three children and another 600,000 raising two.

Orbán emphasized that these measures are part of building "the world’s first family-centred economy," where "one-child mothers [are] exempt from income tax until they turn 30" and those with "two or more children" pay no income tax for life.

The Prime Minister stated, “There will only be more births if the mothers feel financially secure,” adding that Hungary would have experienced significantly fewer births since 2010 without the Fidesz government’s family policies.

In addition to the expanded exemptions, Orbán announced an increase in existing deductible amounts. Parents can write off €50 per month after one child, €200 after two, and €500 after three on their taxes. All allowances and childcare benefits linked to parental leave will also become tax-free.

While these pro-family policies are expected to increase public spending, Orbán assured that Hungary could manage this while continuing economic growth and reducing public debt. He noted that Hungary's family policies have garnered international attention for providing interest-free loans to newlyweds who plan on having children within five years. These loans partially convert into grants as each subsequent child is born.

Orbán's administration aims to counter demographic decline by increasing native birth rates rather than adopting mass migration policies seen in other countries.