Hungary

Personal allowances

In 2023, the amounts of family tax allowance are as follows:

• HUF 66,670 if there is one dependent child
• HUF 133,330 if there are two dependent children, or
• HUF 220,000 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, will be completely exempt from paying the PIT in case of certain types of income specified by law (especially in case of the wage income).

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.

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 be in their first marriage. The allowance is available for a maximum period of 24 months. There is no age limit on eligibility for the tax benefit of first marriage.

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 500,000 for July 2022). It practically means that individuals under age 25 can apply the PIT-free allowance but only up to this maximum limit.