The Under-25 and Under-30 Mother Tax Exemptions

Who pays no income tax under 25 in Hungary?

Employees and self-employed people under the age of 25 pay no personal income tax on most of their earnings, up to a monthly ceiling of HUF 693,740 in 2026. Everything below that line is free of the 15% személyi jövedelemadó (personal income tax, often shortened to Szja), and only income above the cap is taxed at the normal flat rate.

This relief is one reason Budapest draws young professionals, and it sits among the more generous parts of Hungary's tax rules for workers. It comes with limits that matter to newcomers though: it waives income tax only (not social security), and since 2025 it is restricted by nationality. A parallel set of exemptions rewards mothers under 30 and mothers raising two or three children, and those expanded sharply for 2026. This guide covers both, with the figures and the official sources.

Rates and thresholds here are stated as of 2026 and can change each January, so confirm the current numbers with NAV, the national tax authority, before planning around them.

How much can you actually save?

The under-25 ceiling is not a fixed number: it tracks the gross national average wage published by the Central Statistical Office (KSH) for July of the previous year. For 2026 that figure is HUF 693,740 per month, up from HUF 656,785 in 2025 (source).

Because the exemption removes the 15% income tax on earnings up to that cap, the maximum saving works out to about HUF 104,061 per month in 2026 (source). A young worker earning at or below the average wage keeps the full 15% they would otherwise lose. Earn more than the cap and only the excess is taxed at the standard rate, which our guide to the 15% flat income tax explains in full.

Eligibility runs through the month in which you turn 25. In that final year the annual cap is applied in proportion to the number of qualifying months, so someone who turns 25 in June receives roughly half of the yearly tax-free amount (NAV).

Which income does the under-25 relief cover?

The exemption applies to the consolidated tax base, which is essentially active income: wages and salary, and self-employment income from a primary business activity. It does not extend to income that Hungary taxes separately, such as dividends and capital gains, so a young investor still pays 15% on that (source).

The most important limit for budgeting is that the relief touches income tax only. The employee social security contribution of 18.5% is still deducted from the whole salary, cap or no cap (source). A worker under 25 therefore keeps more than an older colleague on the same gross pay, but not the full gross figure. Our breakdown of social security contributions shows exactly what still comes out of the payslip.

Do foreign workers under 25 qualify?

Not automatically. Since 1 January 2025 the under-25 relief, along with the family allowance and the newlywed allowance, is available only to citizens of Hungary, the European Economic Area, and the non-EEA neighbouring countries Ukraine and Serbia (source).

In practice a young French, German, or other EEA citizen working in Budapest can claim it on the same terms as a local. A young American, British, or other non-EEA national generally cannot, even with a Hungarian employment contract and tax residency. If you are unsure where you stand, the nationality test is set out in NAV's factsheet for young people under 25.

The exemption for mothers under 30

A separate and more generous relief applies to young mothers. A woman under 30 who is raising a child can be exempt from personal income tax on her consolidated tax base, and from 1 January 2026 the salary cap that used to limit it was removed, so the whole wage can be tax free (source).

The entitlement is tied to the family tax allowance: it applies where eligibility for that allowance arose after 31 December 2022. A woman counts as a mother under 30 if she turns 30 after 31 December preceding the tax year, and she keeps the exemption for the entire year in which she reaches 30 (source). One government estimate valued the average benefit for eligible families at around HUF 109,000 a month (source).

NAV publishes a dedicated declaration and factsheet for the mothers under 30 relief.

Mothers of two or three children: the wider reform

The under-30 rule sits inside a much larger family tax reform. Since 1 October 2025 mothers raising three or more children are exempt from personal income tax on their consolidated tax base regardless of age (source), extending a benefit that previously covered only their family allowance.

For mothers of two children the exemption is phased in by age between 2026 and 2029: from 1 January 2026 for those under 40, from 2027 for ages 40 to 50, from 2028 for ages 50 to 60, and from 2029 for those 60 and over (source). Around half a million mothers are expected to benefit from 2026, rising toward one million by 2029 (source).

These exemptions stack on top of the standard family tax allowance, which was itself doubled in 2026, so a working mother can combine several reliefs against the same salary.

How do you claim the exemption?

For employees the relief is usually applied automatically at source. The under-25 exemption is granted by default, and the employer runs payroll without withholding the 15% income tax up to the cap. Mothers claim their exemption by giving the employer a tax advance declaration (adóelőleg-nyilatkozat, an advance tax statement) (NAV).

There are cases where you should file a declaration to switch the under-25 relief off, for example if you hold two jobs and would otherwise apply the cap twice, which can create a tax debt at year end. The self-employed and anyone reconciling a full year settle it on the annual return. Our guide to filing the annual SZJA return explains the e-SZJA process and the May deadline.

You reach the tax portal through the Ügyfélkapu+ (client gate) identification service, so make sure your online ID is active before filing.

What does it mean for take-home pay?

Consider an associate under 25 earning a gross HUF 600,000 per month, which is below the 2026 ceiling. Normally 15% income tax (HUF 90,000) and 18.5% social security (HUF 111,000) would be deducted, leaving HUF 399,000. With the under-25 exemption the income tax is waived, so the take-home rises to about HUF 489,000, while the social contribution is unchanged.

Push the gross to HUF 800,000 and only the portion above HUF 693,740 is taxed: 15% applies to roughly HUF 106,260, or about HUF 15,939 in income tax, rather than HUF 120,000 on the whole amount. These figures use the 2026 rates and cap and are an illustration, not tax advice: your own result depends on your allowances and exact status.

Frequently asked questions

Is the under-25 tax exemption automatic?

Yes. For employees it is applied by default in payroll, so no income tax is withheld up to the monthly cap. You only need to act if you want to decline it, for example when two employers would each apply the cap and your combined pay would exceed it, which would leave tax to settle at year end.

Do people under 25 still pay social security in Hungary?

Yes. The exemption removes the 15% personal income tax only. The 18.5% employee social security contribution is still deducted from the full gross salary (source), so a young worker keeps more than an older colleague but not the entire gross figure.

Can a non-EU citizen under 25 claim the exemption?

Generally no. Since 2025 the relief is limited to citizens of Hungary, the EEA, Ukraine and Serbia (source). A young American or British worker on a Hungarian contract usually does not qualify, while EEA nationals do.

What happens in the year I turn 25?

You keep the exemption through the month in which you turn 25. For that year the annual cap is prorated to your eligible months, so turning 25 mid-year gives a proportionally smaller tax-free amount (source).

Are mothers under 30 fully tax free in 2026?

Eligible mothers under 30 raising a child can have their whole salary exempt from income tax from 1 January 2026, when the earlier salary cap on this relief was removed (source). Social security contributions still apply.