This initiative expands upon an existing policy that grants permanent tax relief to mothers with four or more 𝘤𝘩𝘪𝘭𝘥ren.

Elon Musk hailed Hungary for its new tax exemptions for women with 𝘤𝘩𝘪𝘭𝘥ren and called it a “good idea.” Hungary announced the new policy in an effort to address declining population growth ahead of the vital 2026 elections. According to new policy, women who have one 𝘤𝘩𝘪𝘭𝘥 will be exempt from income tax until the age of 30, while those with two or more 𝘤𝘩𝘪𝘭𝘥ren will receive lifelong income tax exemptions.

This initiative expands upon an existing policy that grants permanent tax relief to mothers with four or more 𝘤𝘩𝘪𝘭𝘥ren. Hungarian authorities hailed the decision as a “global sensation” and a “new chapter” in the nation’s economic history, emphasising its goal of boosting 𝐛𝐢𝐫𝐭𝐡 rates.

During his State of the Nation address in Budapest, Prime Minister Viktor Orbán announced that tax exemptions for women with three 𝘤𝘩𝘪𝘭𝘥ren would take effect in October 2025, while those for women with two 𝘤𝘩𝘪𝘭𝘥ren would begin in January 2026.

“This will be a huge expense, but the reviving economy, the measures to support businesses and full employment combined are capable of paying for this in a way that the budget deficit and public debt both decline,” the Hungarian Prime Minister said.

Additionally, as part of broader economic measures, Hungary will cap housing loan interest rates at 5% starting in April. PM Orbán described the tax relief initiative as “the biggest tax reduction program in Europe.”

Prime Minister Viktor Orban took it to X and said, “Hungary is making history with the largest tax cut in Europe & the entire Western world! 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 future of Hungarian families for decades to come.”