Hungary Personal Income Tax Reliefs for 2025

Article author
Mika
  • Updated

This article outlines the available tax benefits, allowances, and additional holidays for employees. It is designed to provide clear and accurate information, ensuring you can maximize the benefits you’re entitled to. 

Annual tax base for employment income

The annual tax base for employment income is calculated by subtracting mandatory insurance contributions and social security contributions paid abroad from taxable income.

First marriage tax benefit

  • Eligibility: Available to couples where at least one spouse is marrying for the first time, regardless of whether the marriage takes place in Hungary or abroad. Registered partners are also eligible, as the term "spouse" includes them.
  • Benefits: The benefit is granted for 24 months, starting the month after the marriage. Couples receive HUF 33,335 per month, resulting in a tax saving of HUF 5,000 per month.

Tax benefits for those under the age of 25

  • Eligibility: Available to employees under the age of 25.
  • Benefits: Employees are exempt from paying Personal Income Tax (PIT), as it is automatically deducted from payroll. The benefit is HUF 656,785, resulting in a tax saving of HUF 98,518 monthly.

Tax allowance for mothers with four or more children (NÉTAK) 

  • Eligibility: Available to women who are entitled to family allowances for at least four children of their own or adopted, or who, if no longer entitled, have been entitled to family allowances for at least 12 years. It also applies to women whose entitlement to family allowances has ceased due to the death of a child.
  • Benefits: If the mother is entitled to the allowance, she does not have to pay any Personal Income Tax (PIT) under the Personal Income Tax Act and there is no upper limit to the benefit.

Family tax benefit (PIT)

The family tax benefit reduces the taxable base based on the number of children:

  • HUF 66,670 for an employee with one dependent child
  • HUF 133,330 per child for an employee with two dependent children
  • HUF 220,000 per child for an employee with three or more dependent children

Additional notes:

  • Starting in 2023, the family allowance for dependents of beneficiaries who are permanently ill or severely disabled has been increased by HUF 66,670 per month for these children.
  • If the full tax benefit cannot be used, 15% of the remaining amount can be deducted from social security contributions.
  • Employees can claim the family allowance if they are eligible for child benefit, and they can claim their spouse, who resides in the same household but is not eligible for child benefit, as their beneficiary.

Important

When completing the family tax benefit form, employees must decide if they want to claim family tax benefits alone or jointly with their partner.

  • If raising the child(ren) together, select "together" (’közösen’), even if the partner isn’t applying for the benefit. Additionally, also fill in the partner's information as required in point II.
  • If raising the child(ren) alone, select "alone" (’egyedül’). 

Personal Income Tax (PIT) allowance for mothers under age 30

  • Eligibility: The allowance for mothers under 30 is available to mothers who are under the age of 30 but over the age of 25, who are entitled to the family allowance for their biological or adopted child, and whose entitlement to the family allowance opened after 31 December 2022.
  • Benefits: The amount of the allowance is the same as in the case of young persons under 25.

Personal tax allowance (PIT)

The personal allowance can be claimed on the basis of a medical certificate of severe disability or a decision on entitlement to an invalidity pension or disability allowance. The medical certificate or decision does not have to be attached to the declaration, but the certificate must be kept within the limitation period.

Persons in receipt of an invalidity pension or disability allowance may claim the personal allowance without a medical certificate.

A person is considered to be severely disabled if

  • suffers from one of the illnesses listed in Government Decree 335/2009 (XII. 29.) on illnesses that constitute severe disability, and
  • who is in receipt of an invalidity allowance or
  • disability allowance.

The amount reduces the taxable base, and it is HUF 96,900 in 2025.

Additional holidays for parents with children under 16

  • Eligibility: Employees can request additional holidays if their child(ren) are under 16.
  • Benefits: Details for additional holidays for employees with child/children under the age of 16 are as follows:
    • 1 child under age 16: 2 additional days
    • 2 children under age 16: 4 additional days
    • If there are more than two children under the age of 16, an additional 7 days will be granted.
    • If the employee's child is disabled, the additional leave above shall be increased by two working days per disabled child.
    • The child should be considered first in the year of their birth and last in the year they turn sixteen.

To apply for additional holidays, please complete the additional holiday request form and upload it to your Documents tab on Remote. Once uploaded, send our team a message via chat to confirm your request.

 

Please visit the government website to read full details and the dedicated government page to download the applicable tax forms

Was this article helpful?

2 out of 3 found this helpful

Have more questions? Submit a request

Comments

0 comments

Article is closed for comments.