Hungary's Family Tax Allowances (Doubled in 2026)

How much is Hungary's family tax allowance in 2026?

In 2026 the Hungarian family tax allowance (családi kedvezmény, family tax allowance) lets eligible parents keep about 20,000 HUF a month for one child, 80,000 HUF for two children (40,000 HUF per child) and 198,000 HUF for three children (66,000 HUF per child), with a further 66,000 HUF a month for every additional child (NAV, source).

These are the amounts that stay in your pocket after the allowance is applied against Hungary's 15% flat personal income tax (source). For a two-child family the yearly saving works out at roughly 960,000 HUF, and for a three-child family at roughly 2.4 million HUF, which is why the allowance is one of the strongest arguments for raising a family in Budapest.

The figures below are current as of 2026 and are set each year in the tax law, so treat them as subject to change and confirm the latest numbers with NAV before you file. This article explains the amounts in general terms and is not personal tax advice.

What changed in 2026?

The rules of the allowance did not change in 2026, its value did. The government raised the family tax allowance in two steps, adding 50% of the previous amount from 1 July 2025 and a further increase that brought it to double its earlier level from 1 January 2026 (source, Accace).

Before the increase a parent of one child saved 10,000 HUF a month, so the 2026 figure of 20,000 HUF is exactly twice as much. The same doubling applies at every family size.

Underneath, the allowance is a reduction of your taxable income rather than a direct refund. The monthly amount taken off the tax base is 133,340 HUF for one child, 266,660 HUF per child for two children and 440,000 HUF per child for three or more children (PwC Tax Summaries). Multiplying those base reductions by the 15% tax rate gives the cash savings above.

How does the allowance actually reduce your tax?

The family tax allowance lowers your consolidated tax base before the 15% personal income tax is calculated. Take a parent of two children: the base is cut by 533,320 HUF a month (two times 266,660 HUF), which reduces the monthly income tax by about 80,000 HUF (PwC Tax Summaries).

If your income tax alone is not high enough to absorb the full allowance, the unused part can be set against your social security contributions through the linked family contribution allowance, so lower earners can still capture most of the benefit (NAV). The allowance can also be split between two eligible parents, or claimed in full by one of them.

For context, the average net wage in Hungary was around 535,900 HUF a month in mid-2026 (KSH), so a monthly saving of 80,000 HUF for two children is a real share of a typical Budapest take-home pay.

Can foreign parents in Budapest claim it?

Many can, but citizenship is now the deciding factor. Since 1 January 2025 the family tax allowance is open to citizens of Hungary, the European Economic Area, Ukraine and Serbia, while other non-EEA nationals are generally excluded (PwC Tax Summaries).

In practice this means an EU or EEA parent working and paying tax in Hungary can usually claim the allowance on the same terms as a Hungarian citizen. Parents from most other countries, including the United States and post-Brexit United Kingdom, typically cannot, aside from the Ukrainian and Serbian exceptions. Cross-border EEA workers may qualify where most of their income is taxed in Hungary and they receive no equivalent benefit abroad, a point worth checking with NAV or a tax adviser.

The family tax allowance is separate from Hungary's insurance-based cash payments, so read it alongside the guide to the cash family benefits CSED, GYED and GYES, which follow their own eligibility rules. If you are still planning the move, the family relocation guide sets out the wider paperwork.

Are there extra allowances for disabled children or newlyweds?

Yes. A child who is chronically ill or severely disabled attracts an additional tax base reduction of 133,340 HUF a month on top of the normal per-child amount, which roughly doubles the saving for that child (PwC Tax Summaries).

There is also a first-marriage allowance for newly married couples. Where at least one spouse marries for the first time, the couple can cut their combined tax base by 33,335 HUF a month for up to 24 months (PwC Tax Summaries). It can run alongside the family tax allowance, so a young couple starting a family in Budapest may use both at once.

Each of these allowances has its own supporting paperwork, such as a medical certificate for a disabled child, so keep the documents ready when you file.

How does it stack with the mothers' income tax exemption?

The family tax allowance sits inside a wider family tax package that has grown quickly. Mothers raising three children have been fully exempt from personal income tax since 1 October 2025 (About Hungary), and the exemption for mothers of two children is being phased in from 1 January 2026, starting with mothers under 40 and widening by age group in later years (WTS Klient).

Mothers of four or more children already hold a lifetime income tax exemption under the scheme known as NÉTAK (mothers of four exemption). These exemptions and the family tax allowance can combine, which is what makes the overall package so favourable for larger families.

One limit is worth noting: the mothers' exemptions apply to earned income such as wages, not to investment or rental income (WTS Klient). Households often use the resulting savings to offset other costs, for example the fees set out in the guide to international schools in Budapest.

How do you claim the family tax allowance?

There are two routes. You can claim monthly through your employer by filing a tax-advance declaration (adóelőleg-nyilatkozat, tax advance declaration), so the allowance appears in each payslip, or you can claim it once a year in your personal income tax return (SZJA, personal income tax) through the NAV eSZJA system (NAV).

The annual return is accessed with an online identity through Ügyfélkapu (client gate), which since January 2025 uses the upgraded two-factor login or the mobile app rather than the old simple password. You will need each child's Hungarian tax identifier, and where the allowance is shared, both parents state their split.

Because eligibility, splitting between parents and the interaction with the mothers' exemption can get involved, confirm your own situation with NAV or a Hungarian accountant before filing. For more on family life and admin, browse the Family & Education guides.

Frequently asked questions

How much can a family with two children save in 2026?

A two-child family can keep about 80,000 HUF a month, or 40,000 HUF per child, which adds up to roughly 960,000 HUF over a full year once the allowance is applied against the 15% income tax (NAV).

Can non-EU citizens claim the Hungarian family tax allowance?

Since 1 January 2025 the allowance is limited to citizens of Hungary, the EEA, Ukraine and Serbia, so most other non-EEA nationals, including American and post-Brexit British parents, generally cannot claim it (PwC Tax Summaries).

Is the family tax allowance the same as the mothers' tax exemption?

No. The family tax allowance reduces the tax base for eligible parents per child, while the mothers' exemption removes income tax entirely on earned income for mothers of three (from October 2025) and, in stages, mothers of two (from January 2026). They are separate measures that can combine (About Hungary).

What if my income tax is too low to use the whole allowance?

If the family tax allowance is larger than your income tax, the unused part can be set against your social security contributions through the family contribution allowance, so lower earners still capture most of the benefit (NAV).