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Austria tax guide 2026
Austria runs seven income tax brackets up to 55% — but softens the blow in ways outsiders miss: the 13th and 14th monthly salaries most employees receive are taxed at just 6%, investment income settles at a flat 27.5%, crypto swaps are tax-neutral, and there has been no inheritance or gift tax since 2008. Brackets rise with inflation automatically, a rarity in Europe.
- Rate range
- 0% – 55% (55% only above €1 million; brackets inflation-indexed)
- Key allowance
- First €13,539 tax-free; 13th/14th salaries taxed at 6% up to €25,000
- Tax year
- Calendar year
- Filing deadline
- 30 April paper / 30 June online (longer via tax advisers)
Taxes covered
- Income tax55%
50% above €104,859; the 55% band starts only at €1 million (legislated through 2029). No local income taxes.
- Dividend tax27.5%
Flat 27.5% final withholding on dividends; bank deposit interest pays 25%; an opt-in to progressive rates helps low earners.
- Capital gains tax27.5% / 30%
Financial assets: flat 27.5% regardless of holding period. Real estate: flat 30%, with the main home and self-built houses exempt.
- Crypto tax27.5%
Flat 27.5% on crypto gains regardless of holding period; crypto-to-crypto swaps are tax-neutral by statute, and native staking rewards are taxed only when later sold.
- Social security18.07%
Employees pay 18.07% all-in (pension 10.25%, health 3.87%, unemployment 2.95%, housing 0.5%, chamber and similar levies 0.5%) on salary capped at €6,930 a month.
- Inheritance tax0%
No inheritance or gift tax since August 2008 — only reporting duties, property-transfer tax on real estate, and a 3.5% foundation entrance tax remain.
- Withholding tax27.5%
Non-residents: 27.5% on dividends (treaty-reducible); interest mostly exempt for information-exchange residents; royalties 20% gross.
Special regimes
- 13th and 14th salary at 6%
Holiday and Christmas pay — standard in Austrian contracts — is taxed at a flat 6% (first €620 free), cutting a typical employee's effective rate by several points.
- No inheritance or gift tax
Abolished in 2008 — estates and gifts pass tax-free, with only reporting duties and property-transfer fees remaining.
- Crypto at a clean 27.5%
Since 2022 crypto gains and rewards pay the flat 27.5% whatever the holding period — and coin-to-coin swaps are simply not taxable events.
- Expatriate deduction
Temporary transferees (max 5 years, no Austrian residence in the prior 10) can deduct a flat 20% of salary up to €10,000 a year, or itemise housing and school costs.
- Automatic inflation indexing
Since 2023 the bracket thresholds and main credits rise with inflation every January — no more cold progression.
Recent changes
- 2026-01Inflation indexing lifted the tax-free bracket to €13,539, the social insurance ceiling to €6,930 a month, and the traffic credit to €496.
- 2026-01The foundation entrance tax rose from 2.5% to 3.5%; increased investment allowances (20%/22%) apply to assets acquired from November 2025 through 2026.
- 2025-07A 30% surcharge now applies to gains on land whose zoning was upgraded to building land after the start of 2025.