Overview of Upcoming Tax Changes
Starting January 1, 2026, new rules introduce comprehensive tax benefits for mothers under the age of 30 in Hungary. These changes affect eligibility, applicable incomes, and the order in which tax benefits are applied. The legal basis for this tax relief will move from the Personal Income Tax Act (Szja tv.) to the 2025 Act XIII about the tax relief for mothers under 30.
Why This Matters for Business Owners
Employers, accountants, and tax consultants must adapt payroll and tax reporting systems to accommodate these new regulations. Understanding eligibility and the scope of income covered is crucial to ensure correct withholding and compliance. Additionally, business owners employing young mothers should be aware of an expanded range of incomes that become fully tax-exempt, impacting net payroll costs and employee benefits administration.
Eligibility and Key Provisions
A woman qualifies as a mother under 30 from January 1, 2026, if she turns 30 only after December 31 of the year preceding the tax year. This broadens eligibility compared to previous rules where the tax benefit could only be used up to the year the mother turned 30. Under the new regulation, even mothers whose family tax credit eligibility started before 2023 can benefit.
From 2026, there is no income limit on the tax benefit, meaning it applies to all qualifying income forming the tax base. Notably, the benefit takes precedence over other child and youth-related tax credits, which cannot be claimed simultaneously if the mother opts for this relief.
Examples
For instance, a mother who turns 30 in February 2026 but only becomes eligible for family tax credit in May 2026 can claim this benefit starting in that month. Another example includes mothers who receive various types of income such as employment wages, social security benefits, or income from self-employment or agricultural production, all of which are fully exempt from personal income tax under this benefit.
Incomes Covered by the Tax Relief
- Income from employment and public employment after December 31, 2025
- Taxable social security benefits
- Taxable social and unemployment benefits
- Income from reserve military service in the Hungarian Defence Forces
- Replacement compensations such as various health and disability-related allowances
- Remuneration from foster parenting employment
- Income from non-self-employed activities, excluding severance payments beyond statutory limits
- Income under self-employment such as business income of sole traders, income of agricultural primary producers, local government representatives, European Parliament members, and others
How to Apply the Tax Benefit
The tax credit applies to income earned after December 31, 2025. If eligibility is not for the full tax year, income from self-employment must be prorated according to eligible months. The tax credit can be claimed during the year via withholding tax adjustments or in the annual tax return, offering flexibility for mothers and employers.
For entrepreneurs and agricultural primary producers, the tax credit is applied during the calculation of tax prepayments.
If a mother qualifies for this under-30 benefit and other benefits such as family tax credit for multiple children, parental benefits, or young persons’ tax credit, only the under-30 mother’s tax benefit applies due to priority rules. However, personal allowances and first-marriage benefits can be claimed alongside the under-30 mother’s benefit if other income categories—like rental income—exist.
Summary
From January 1, 2026, the 30-year-old threshold for this tax relief is applied differently, removing previous time limits and expanding eligible incomes with no cap. This results in complete tax exemption for a wide range of incomes for mothers under 30, simplifying and enhancing tax benefits for young mothers.
Business owners should prepare for these changes by updating payroll systems and advising eligible employees on how this benefit interacts with other tax credits and the proper timing of claiming the benefit.