Hungary Leads the World in Family Friendly Policies

2023 is shaping up to be a very good year for Hungarian women, under 30, who give birth. That’s because the Hungarian Government has decided to eliminate tax liability for those women, for the rest of their lives.

Yes, you read that correctly: As of January 1, 2023, women giving birth, under the age of 30, will be exempt
from paying personal income tax for their lifetimes. And, this new policy was confirmed by Balázs Orbán,
political director of Hungarian Prime Minister Viktor Orbán, in a Tweet in late December.

Balázs Orbán announced on Twitter that Hungary was doubling down on extending “its family-friendly policies.”

Hungary already allowed 0% personal income tax for working adults up to 25 years old and 0% personal income tax for mothers with at least 4 children.

The new addition to the ranks of those exempt from personal income tax in Hungary – mothers under 30 – is a direct attempt to stimulate the country’s birthrate which now stands at 1.62 children per woman of childbearing age. While that rate is still below replacement rate, it has been improving steadily in Hungary over the past two decades.

During that time, the Fidesz Party – which has governed for 17 out of the last 25 years – has introduced progressively more and more family-friendly policies, which have contributed, in no small part, to the country’s rising birthrate. Fidesz is intent on preventing Hungary from becoming reliant on immigration to supply for possible future labor shortages, and this new policy aims to drive continued success in growing Hungary’s birthrate.