(LifeSiteNews) — New pro-family laws have taken effect in Hungary, granting families almost $300 in monthly tax breaks for each child.
As of July 1, the monthly tax allowance for families will increase significantly. Families with one child will receive monthly tax breaks of 100,000 HUF ($293). For two children, they will receive 200,000 HUF ($585), and for three or more children, 330,000 HUF ($965) per month.
Commenting on the new measure, Balázs Orbán, Political Director of Hungarian Prime Minister Viktor Orbán, said, “This boosts parents’ net pay without placing additional financial burden on employers – a direct, pro-family measure embedded in the tax system.”
“Hungary’s approach is clear: protect families, reward childrearing, and strengthen national resilience through responsible economic policy,” he added.
The pro-family measures that were passed earlier this year will also extend the lifelong exemption of personal income tax (PIT) for mothers with two or three children. This benefit was previously only granted to mothers under 30 and those with four or more children.
The government also eliminated PIT on certain maternity benefits, such as the infant care allowance (CSED), childcare fee (GYED), and adoption allowance. According to Balázs Orbán, these measures will result in “an approximate 15% income increase for recipients.”
READ: Elon Musk praises Hungary’s tax breaks for mothers in bid to boost family growth
Additionally, the Hungarian government recently presented a new housing loan scheme with fixed interest rates designed to help people aged 18-40 afford their first home.
Prime Minister Orbán called the measure a significant step for young people, saying it would be available “to anyone, anywhere.”
Since first taking office in 2010, Orbán’s government has introduced various pro-family measures intended to strengthen families and raise the country’s low birth rate. In 2011, Hungary’s fertility rate reached an all-time low of 1.23 children per woman. Since then, the birth rate has increased every year until 2021, when it reached 1.61 children per woman.
However, after the COVID-19 crisis, when Hungary implemented lockdowns, mask mandates, and vaccine mandates for certain groups like healthcare workers, the birth rate decreased slightly. While Orbán credited his pro-family measures for the birth rate increase since 2011, he admitted that COVID-era measures have caused a regression in the area.