Hungarian Prime Minister Viktor Orban has introduced what he calls the “largest tax cut in Europe and the entire Western world”.
In a social media post on Sunday, 16th March, Orban declared that Hungary is “making history” by creating the world’s first family-centered economy. The new policy introduces major income tax exemptions for mothers, as part of his government’s push to boost the country’s birth rate.
According to the Hungarian politician, mothers with one child will be exempt from paying income tax until they turn 30 years old. At the same time, mothers with two or more children will be completely exempt from paying income tax for life.
This measure expands an existing policy that already grants lifelong income tax exemptions to mothers with four or more children.
Hungary is making history with the largest tax cut in Europe & the entire Western world!
— Orbán Viktor (@PM_ViktorOrban) March 16, 2025
We are building the world’s first family-centred economy:
👶 One-child mothers exempt from income tax until they turn 30.
👩👧👦 Two or more children? No income tax for life!
Securing the… pic.twitter.com/iGY96p5LiZ
According to Hungarian authorities, the initiative represents a “global sensation” and a “new chapter” in Hungary’s economic history. The move aligns with Viktor Orban administration’s long-term strategy to reverse declining birth rates and encourage family growth in the Eastern European country.
The announcement comes ahead of Hungary’s 2026 parliamentary elections, which will take place in April next year. This policy is part of Orban’s push to support traditional families with financial aid.
Hungary has already introduced housing subsidies, childcare benefits, and low-interest family loans to help young parents. Now, with this tax break for mothers, the government is reinforcing its focus on putting families at the center of its economic plans.
