Hungarian Prime Minister Viktor Orban has announced a sweeping tax reform that will grant significant income tax exemptions for mothers, aiming to counteract the country’s declining birth rate.
Under the new policy, mothers with one child will be exempt from paying income tax until they turn 30, while mothers with two or more children will be granted a lifetime exemption from income tax. The measure, set to take effect in 2026, expands upon an existing policy that already offers lifetime tax exemptions to mothers with four or more children.
Orban described the reform as “the largest tax reduction in Europe and the entire Western world,” emphasizing that Hungary is creating “the world’s first family-centered economy.” His government has already implemented housing subsidies, childcare benefits, and low-interest family loans to support young parents.
This latest initiative aligns with Orban’s long-term strategy to strengthen traditional families through financial incentives. However, its timing, just a year before Hungary’s parliamentary elections, has also sparked speculation about its political motivations.
