What would your life look like if you didn’t have to pay income tax simply because you’re a mother of two or more children?
That’s not a theoretical question in Hungary—it’s policy.
Since 2020, Hungary has granted a full personal income tax exemption to mothers raising four or more children. In a February 2025 address, Prime Minister Viktor Orbán announced that exemption was expanded to include mothers with two or more children—first to mothers with three children starting in October 2025, and then to mothers with two children beginning in January 2026.
Once in effect, these measures will allow eligible mothers to keep 100% of their income tax-free. It’s a bold, family-first move designed to make parenthood more economically sustainable—and it’s sparking conversations around the world.
Additionally, mothers with one child will be exempt from income tax until the age of 30. Prime Minister Orbán described the entire tax reform—spanning moms of one, two, and three or more children—as “the largest tax cut in Europe and the entire Western world.” He framed the expansion as the beginning of a “new era for Hungary’s economy,” built on the foundation of family.
Related: The UK just gave moms miscarriage leave—why doesn’t the U.S. do the same?
Hungary’s tax exemption isn’t just about economics; it’s about acknowledging the value of motherhood. It’s about recognizing that raising children is work—and that work contributes to a nation’s future. By easing the tax burden, Hungary is offering moms what so many say they need most: breathing room.
Breathing room that could mean covering the cost of daycare without sacrificing retirement savings. The ability to buy a reliable family car or build an emergency fund without stress. It could mean finally feeling like there’s enough—enough to provide, enough to plan, enough to exhale.
Mothers who work will be eligible for this benefit no matter their income level, age, or how old their children are. It’s not a short-term measure, either—the exemption remains in place for as long as a mother is raising her children. Prime Minister Orbán also noted that the family tax allowance—ranging from 10,000 HUF (about $26) to 165,000 HUF (roughly $430) monthly, depending on how many children are in the home—is available to fathers, too.
Of course, Hungary’s approach isn’t perfect. But it’s still a rare example of a government putting money where its values are when it comes to families.
Hungary has made family support a cornerstone of its national strategy, responding to a shrinking population with bold policy shifts. Its newest tax reform—exempting mothers of two or more children from income tax for life—is the most sweeping yet. Framed as a step toward becoming the world’s first “family-centered economy,” the policy complements a broader set of initiatives, from housing subsidies and free education to expanded social services—all aimed at making it easier to raise children in a financially stable environment.
The urgency behind these reforms is real. In 2024, Hungary recorded its lowest birth rate since 1949, with just 77,500 births—a 9.1% drop from the previous year, according to the Hungarian Central Statistical Office.
Whether or not you agree with all of Hungary’s motivations, one thing is clear: These policies reflect a deep belief that supporting mothers is not just a moral imperative—it’s a national investment in the future.
What would it look like to center mothers in U.S. tax policy?
In the U.S., we’ve seen glimmers of possibility—the expanded Child Tax Credit of 2021 cut child poverty nearly in half before it expired. But most of our family support systems are temporary, conditional, or income-limited, leaving many middle-class families stuck in the squeeze.
A policy like Hungary’s asks us to rethink the framework entirely.
What if motherhood itself—independent of marital status or income—was grounds for real financial relief? What if raising children was seen not just as a personal choice but a public good?
What if we treated tax policy as a tool for care?
Mothers are not a special interest group. We are the majority.
We know what mothers need. We talk about it in pediatric waiting rooms, in office Slack channels, and during 2 a.m. feedings. We need better leave policies, affordable childcare, and recognition that caregiving is labor.
So let’s ask the question: If Hungary can do it, why not us?
It’s time to take these conversations out of the margins and into the mainstream—into the places where policy is made, and where reform begins. Because American moms aren’t asking for handouts. We’re asking for systems that recognize what we’re already doing—and finally have our backs.
Related: What parents need to know about the Child Tax Credit this year
Source:
- The exemption was expanded to include mothers with two or more children. Reuters. 2025. “Hungary’s Orban launches tax exemption for mothers, cap on housing loan rates.”
- Mothers who work will be eligible for this benefit no matter their income level. Hungarian Conservative. 2025. “Bryan Leib Lauds Hungary’s Policy of Tax Exemptions for Mothers.”
- Hungary recorded its lowest birth rate since 1949. Hungary Today. 2025. “Survey Sheds Light on Factors behind Lower Birth Rate.”