From October 1, 2025, in Hungary mothers raising three children can also benefit from personal income tax exemption, similar to mothers raising four or more children.
The exemption can be claimed without any income limit for the types of income listed in the law, such as:
- income from employment or public employment,
- sick pay, baby-care benefit (CSED), child-care benefit (GYED), and income-replacement allowances (e.g. jobseeker’s allowance, pre-retirement jobseeker’s benefit),
- income paid to partners of a company for their personal contribution,
- and certain self-employment income (e.g. from commission contracts or income taxed under the entrepreneurial income tax scheme).
However, the exemption does not apply to income not earned through work, such as rental income or capital income.
Eligibility is similar to the rules regarding tax allowance of mothers raising for four or more children, biological or adoptive mother raising three children is entitled if:
- she is currently eligible for family allowance for them, or
- she is no longer eligible for family allowance, but the entitlement existed for at least consecutive 12 years, or
- her entitlement ended due to the death of a child.
Other important details:
- The exemption for mothers raising three children shall be claimed each year with a new declaration.
- In contrast, mothers with four or more children can submit a continuous (multi-year) declaration.
- Exemption of the mothers with more children takes priority over other personal income tax allowances. The parents can also claim the portion of the family tax allowance that they cannot use against their consolidated taxable income as a family social contribution allowance. By sharing the family tax allowance between the parents, validation of the allowances can be optimized, so it’s worth reviewing the options carefully.
- If the allowance is claimed without legal grounds and the resulting payment obligation exceeds HUF 10 000, a 12% penalty is applied in addition to the tax repayment.
Foreign individuals can also claim the exemption if at least 75% of their total income is taxable in Hungary, and they don’t claim a similar benefit in another country for the same period.
If someone would like to validate the exemption during the year, a tax allowance declaration needs to be submitted to the employer or payer. The declaration can be made easily through the NAV’s (tax authority) online platform (ONYA) starting October 1, 2025. Alternatively, the benefit can also be claimed in the annual tax return as a lump sum by the individual.
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