Hungary’s government just took another big swing at reversing its population decline—this time by giving even more mothers a permanent break from income taxes.
On Tuesday, April 29, lawmakers in Budapest passed a new law that will roll out lifetime income tax exemptions for women with two or more children, building on Prime Minister Viktor Orbán’s long-standing mission to turn Hungary into what he calls the “world’s first family-oriented economy.”
Starting next year, women under 40 with two children will be exempt from paying income tax for life. And come October, that same benefit will extend to mothers of three, regardless of age. By 2029, all mothers with at least two children will qualify, no matter when they gave birth.
Orbán isn’t shy about what he’s aiming for. In a March speech, he framed the sweeping tax policy as globally unprecedented, saying, “Mothers with one child won’t pay income tax until 30, and mothers with two or more won’t pay it ever again. This is a world-first. It guarantees Hungary’s future for generations.”
This move adds to an already generous list of family-focused incentives the government has rolled out since 2010—think low-interest loans, housing assistance, and existing tax exemptions for moms with four or more children.
Unlike many of its EU peers, Hungary has taken a hard line on immigration. Rather than relying on newcomers to solve the demographic crisis, Orbán’s government has doubled down on homegrown solutions. Since the 2015 migrant crisis, Budapest has tightened its borders and emphasized that revitalizing the native population—not importing labor—is the way forward.
All eyes are now on Hungary as it continues blazing its own trail in Europe’s demographic battle.
