Family allowance
The family tax allowance (Szja tv. §§29/A–29/B) lowers the SZJA base: the per-child (per beneficiary dependant) amount rises with the number of dependants, and where it exceeds the tax base, the remainder can be taken as a family contribution credit off the TB contribution. The result is an estimate.
The family allowance (családi kedvezmény) is the single item that most changes what a Hungarian family takes home. It is not a cash payment and not a discount on the tax bill directly: it is a reduction of the tax base – the income the flat rate is applied to – for each beneficiary dependant. Fewer forints in the base means less income tax. This page explains how it is built up; the figures are the ones in force for 2026.
A per-child reduction, tiered by dependant count
The allowance gives a fixed monthly base reduction for each beneficiary dependant, and the per-child amount depends on how many dependants there are. It is not a flat sum split across the children: a second child raises the per-child amount, and a third raises it again, so larger families receive more per child. The table shows the per-child reduction for each tier and the monthly tax cut it produces at the flat rate.
| Dependants | Reduction / child | Tax cut / child |
|---|---|---|
| 1 | 133 340 Ft | 20 001 Ft |
| 2 | 266 660 Ft | 39 999 Ft |
| 3 or more | 440 000 Ft | 66 000 Ft |
To get the monthly reduction for a family, take the per-child amount for the relevant tier and multiply by the number of dependants. Two dependants, for example, use the two-child per-child amount for each child; three or more use the three-plus amount for the third and each further child.
When the allowance is bigger than the tax
On a lower wage with several children the allowance can be larger than the SZJA base it is meant to reduce. The part that cannot be used against income tax is not lost: the remainder can be claimed as a family contribution credit (családi járulékkedvezmény) against the TB contribution, at 15% of that unused base. In effect the family allowance first wipes out the income tax and then reaches into the contribution to give back more of it. The calculator applies this spillover automatically.
What the calculator simplifies
Two points are modelling simplifications, flagged here rather than hidden:
- Dependant vs beneficiary dependant. The tax rules distinguish all dependants (which set the tier) from beneficiary dependants (those the allowance is actually claimed for). The calculator uses a single child count for both, so a non-beneficiary dependant that raises the tier is out of scope.
- Ordering against the under-25 exemption. When the under-25 exemption and the family allowance both apply, the exact order in which they reduce the base, and the interaction with the minimum contribution base, are not settled here. The calculator applies a defensible order but does not present it as settled.