Viktor Orbán announces doubling of tax benefits for families with children!

In a recent Facebook post, Hungarian Prime Minister Viktor Orbán announced that the tax benefits for families with children will be doubled in 2025. The announcement was part of Orbán’s speech at the Tusványos Summer Free University and Student Camp, where he emphasised the need for a strong and flexible Hungarian society. According to Orbán, reversing the country’s demographic decline, which has stagnated despite initial success, requires renewed efforts.

As part of a “peace budget,” the government plans to double the child tax benefits and extend these benefits to Hungarians living abroad, Portfolio reports. Orbán also stressed the importance of preserving the rural village system and maintaining a work-based society, avoiding the creation of megacities.

Who is eligible for family tax benefits?

Individuals entitled to family allowances.
Parents who share custody of their child based on a court decision, agreement, or joint declaration.
Spouses living in the same household as the family allowance recipient but not entitled to the allowance themselves.
Pregnant women and their spouses living in the same household.
Children entitled to family allowances on their own behalf and individuals receiving disability benefits.
Individuals eligible for family allowances, disability benefits, or similar benefits under the laws of any foreign country, provided they meet other statutory conditions.

Duration of family tax benefits

The family tax benefit can be claimed from the 91st day of pregnancy, requiring a medical certificate. It continues until the child reaches 16 years of age, or longer if the child is enrolled in a full-time educational institution (such as high school or vocational school). The benefit ends when the child graduates from high school. However, if there are younger siblings who are eligible, the older child can still be considered for the benefit, albeit at a reduced rate.

Applicable incomes for family tax benefits

Family tax benefits can be claimed on income that forms part of the consolidated tax base, including:

Income from independent activities, such as private businesses, agricultural production, or rental income.
Income from dependent activities, such as wages and taxable social security benefits, including child care fees.

This comprehensive increase in family tax benefits is aimed at supporting Hungarian families and encouraging population growth.

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