Hungary

Please note that from 1 January 2025 certain personal tax allowances (i.e. the family allowance, the discount for first-time married couples, and the discount for people under 25) are only available to Hungarian, EEA state, Ukrainian, and Serbian citizens in the future. For example, Turkish or Chinese citizens living in Hungary are not eligible for these discounts / allowances.

Personal allowances

PIT allowance for families

In the first half of 2025, the amounts of family tax allowance are as follows:

• HUF 66,670 if there is one dependent child
• HUF 133,330 per children if there are two dependent children, or
• HUF 220,000 if there are three or more dependent children, per month for each child.

From 1 July 2025, the amounts are increased by 50% and from 1 January 2026, these amounts will be doubled. Consequently, in the second half of 2025 the amounts of family tax allowance are:

• HUF 100,000 if there is one dependent child
• HUF 200,000 per children if there are two dependent children, or
• HUF 330,000 if there are three or more dependent children, per month for each child.

The allowance is deductible from the taxpayer's tax base. 15% of the unused amount of the child tax base allowance is to be deducted from the social security contributions (18.5%). As of 1 January 2020, all mothers who are currently raising at least four children, or who have raised four or more children during their lifetime, have been completely exempt from paying the PIT in case of certain types of income specified by law (especially in case of the wage income). This exemption will be applicable to mothers raising three children as of 1 October 2025.

Persons entitled to the child benefit are entitled to apply this allowance regardless of whether they actually receive child benefit payments from the state budget.

The family allowance for families raising chronically ill or severely disabled children is higher. In addition to the existing family tax allowance, an extra allowance of HUF 66,670 per month can be applied for dependants who qualify as chronically ill or severely disabled person. This practically means an additional HUF 10,000 net allowance per dependant per month.

Please note that this allowance is currently expected to increase by 150% from 1 July 2025 and by 200% from 1 January 2026.

PIT allowance for first-time married couples

Couples marrying after 31 December 2014 are able to decrease their tax bases by a total monthly amount of HUF 33,335, under certain circumstances. One requirement for this tax base allowance is that at least one member of the couple must marry for the first time. The allowance is available for a maximum period of 24 months. There is no age limit on eligibility for this allowance.

PIT allowance for individuals under age 25

Individuals under age 25 can apply this allowance with respect to certain incomes, but only up to maximum the gross national average income published by the Hungarian Central Statistical Office for the July of the preceding year (HUF 657,032 for July 2024). It practically means that individuals under age 25 can apply the PIT-free allowance but only up to this maximum limit, which is net of HUF 98,555 per month in 2025.

PIT allowance for mothers under age 30

Mothers under age 30, as of 1 January 2023, young women giving birth, older than age 25 but not older than age 30 when reaching the 91st day of pregnancy, giving birth, or adopting a child, may reduce their consolidated tax base with this allowance. The maximum amount of the tax relief is HUF 95,505 per month in 2025. However, it is important to know that the allowance is only eligible if the woman’s entitlement to the family tax allowance opened after 31 December 2022 in connection with her fetus, biological, or adopted child.

PIT allowance for mothers raising 3 children

Mothers – regardless of their age – raising 3 children, as of 1 October 2025 will be eligible for a personal income tax exemption regarding their consolidated personal income tax base.

PIT allowance for mothers raising 2 children

This tax allowance will be introduced gradually between 2026 and 2029 as a tax exemption for mothers raising 2 children applicable to the consolidated personal income tax base.