A law was passed on April 29, 2025, in Hungary, exempting women with two or three children from income tax to combat population decline. This measure, championed by Prime Minister Viktor Orbán’s conservative government, builds on earlier initiatives like subsidized loans and housing allowances for families. Starting next year, mothers of two under 40 will enjoy a lifetime tax exemption, with plans to extend this to all mothers of at least two children by 2029. The policy aims to create a family-oriented economy unique on the global stage.
Mothers of three will see immediate benefits, with income tax exemptions beginning in October 2025. Since 2010, Orbán’s administration has prioritized boosting birth rates through pro-family policies, including tax breaks for women with four or more children. In a March speech, Orbán declared these measures a “global sensation” designed to secure the future of Hungarian families. The government views these incentives as critical to reversing demographic decline without relying on immigration.
Hungary’s approach starkly contrasts with other European nations, as Budapest has staunchly opposed illegal migration since the 2015 crisis. Rather than importing migrants to address population challenges, the government is doubling down on policies to encourage native population growth. The new tax exemptions are expected to significantly ease financial burdens for mothers, potentially reshaping family planning decisions. Critics, however, question the long-term economic impact of such sweeping tax cuts.
Orbán’s vision of a family-centric economy includes additional perks, like tax exemptions for mothers of one child until age 30. These policies reflect Hungary’s broader strategy to prioritize cultural and demographic preservation over multicultural integration. The government argues that fostering strong, native-born families will ensure the nation’s stability for decades. As the law rolls out, its success will hinge on whether it can effectively boost birth rates while maintaining fiscal balance.
