As of July 1, 2025, the regulation concerning the family tax allowance under Act CXVII of 1995 on Personal Income Tax (PIT Act) will be amended in Hungary. According to the legislative change, the amount of the allowance will increase, enhancing the applicable tax base reduction depending on the number of eligible dependents. It is important to note that the monthly validation of the allowance also depends on how the declaration was submitted before in the year.
Family tax allowance amounts for the first and second half of 2025:
| Monthly allowance amount per dependent until June 30, 2025 (gross): | Monthly allowance amount per dependent from July 1, 2025 (gross): | |
| For 1 dependent | HUF 66 670/month | HUF 100 000/month |
| For 2 dependents | HUF 133 330 Ft/month | HUF 200 000/month |
| For 3 or more dependents | HUF 220 000/month | HUF 330 000/month |
The increased allowance will be applied automatically from July 1, 2025 if the number of eligible dependents was indicated in the declaration submitted earlier that year. In this case, the Employee has no further action to take.
However, if the declaration was completed with a specific amount — meaning an exact amount in HUF was indicated — payroll shall continue to take this amount into account even after July. In such cases, a new, modified declaration needs to be be submitted in order to apply the higher allowance — no later than the payroll input deadline for July.
If the modified declaration is not submitted, the Employee does not lose the right to the increased family tax allowance. The difference can still be claimed in a lump sum through the annual personal income tax return. Employees are advised to review their family tax allowance declaration made earlier in the year in June 2025. If necessary, the declaration can be modified to ensure that the higher allowance is applied on a monthly basis starting from July 2025.
If you have any questions about family tax allowances or how they are calculated, please feel free to contact us!
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