Hungary & Poland Introduce Family Tax Exemptions: How Zero PIT for Parents Impacts Mobility and Immigration
- Move One Relocations
- 2 days ago
- 3 min read
Overview:
Hungary and Poland have both expanded personal income tax (PIT) exemptions linked to parenting—significantly changing the net pay picture for women with children (and, in Poland’s case, other parents/guardians too). These rules can materially affect package design, tax equalization, and assignment feasibility for inbound and intra-EU moves. Below is what changed and how to adapt mobility and immigration planning. Key changes
Hungary
From October 1, 2025, mothers raising three children are fully exempt from PIT on income in the consolidated tax base. This builds on the long-standing exemption for mothers of four or more and complements the “young mothers under 30” exemption.
The 2025 tax package also paves the way to extend exemptions to mothers of two children (phased by age cohort from January 1, 2026, with staged rollout to 2029).
Practical nuance: several PIT allowances (e.g., under-25 discount) became citizenship-limited from January 1, 2025 (Hungarian/EEA/Ukrainian/Serbian). While this note concerns allowances (not the new moms’ exemptions), eligibility checks for non-EEA nationals are essential.
Poland
On October 16, 2025, the President signed a law introducing zero PIT for parents raising at least two children, up to PLN 140,000 annual income (per ruleset). First impact is expected to show in 2026 income, filed in 2027.
This adds to the existing “4+ children” PIT-0 relief (exempt income up to PLN 85,528 per parent under earlier rules), which remains in force until the new framework is fully implemented in practice.
Who may qualify (at a glance)
Hungary: Resident mothers who meet the child-count criteria (3+ from Oct 1, 2025; 2+ phased from 2026) on income in the consolidated tax base. “Young mothers under 30” relief continues to exist with coordination rules. Confirm residency, child definitions (biological/adopted), and stackability with other reliefs.
Poland: Parents/guardians (not only women) with at least two children, with zero PIT up to the published threshold; “4+ relief” continues to apply under prior caps until the new regime is reflected in returns. Watch for implementing guidance on coordination between the regimes.
Mobility & immigration implications
Assignment cost & package design
Higher net pay for eligible assignees can lower gross-up and tax equalization costs on Hungarian and Polish payrolls. Model scenarios for: single-earner mothers (HU), dual-earner families, and Polish families at/near the PLN 140k threshold.
Host location attractiveness
Hungary and Poland become more attractive destinations for family moves where the mother (HU) or either parent (PL) will be locally employed and tax-resident. Consider split-payroll and shadow payroll setups that let the exemption apply to host-taxable income.
Residency & treaty coordination
Reliefs apply in the host tax system; ensure days-in-country, resident status, and tie-breaker rules under double tax treaties align (especially for commuters/short-termers). Where residency is mixed, benefit may be diluted. (General treaty/residency principle; confirm case-by-case.)
Citizenship caveats (Hungary)
Some PIT allowances now exclude certain third-country nationals. While the new mom exemptions are distinct, non-EEA families should have eligibility vetted during immigration and onboarding.
HR policy & equity
In Poland, the expanded zero-PIT reaches both parents/guardians, not just women—update policy language accordingly to avoid gender-specific inequities and to reflect the 2+ children threshold.
Timing
Hungary’s 3-child exemption is live from Oct 1, 2025; Poland’s new 2+ regime impacts 2026 income (filed 2027). Plan start dates and transfers to capture benefits.
Action checklist for HR/Global Mobility
Screen eligibility during immigration and hiring (child count, residency plans, expected income, parent/guardian status).
Re-price packages for HU/PL moves: model net-to-gross under the new exemptions; adjust tax equalization/hypothetical tax policies.
Payroll setup: confirm host payroll registration, shadow payroll, and reporting so exempt income is correctly coded (Hungary: consolidated tax base; Poland: threshold tracking).
Contracting & timing: where feasible, align assignment start dates to fall after Hungary’s effective date and before the Polish tax year for 2026 income recognition.
Communications: update candidate briefs and recruiter talking points to reflect zero-PIT scenarios and clarify that eligibility depends on residency and local law.
Governance: set a quarterly legislative watch—both regimes may receive clarifications and implementing guidance.
Important notes
This Insider summarizes recently adopted measures. For Poland, expect implementing guidance and payroll system updates before 2026 returns. For Hungary, mother-of-two rollout is phased from 2026—confirm cohort rules before committing in offer letters.
Always confirm immigration status first: work/residence authorization drives where income is taxable and whether relief can be used.
For non-EEA nationals in Hungary, check intersecting rules where some allowances are citizenship-limited.
At Move One, we support clients through complex, fast-moving regulations. We’ll ensure immigration and payroll compliance while optimizing your mobility costs in Hungary and Poland.
Need guidance? Engage your Move One contact or reach out to our Poland/Hungary teams: PL: PL-imm@moveoneinc.com HU/CEE: relo@moveoneinc.com