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Dividend tax in Austria 2026
Dividends are settled at source with a flat, final 27.5% — nothing more to file — and plain bank-account interest gets a slightly gentler 25%.
Anyone whose personal rate would be lower can opt into assessment at progressive rates instead, with the withholding credited back.
At a glance
- top rate
- 27.5% final (dividends, securities interest); 25% bank deposits
- entry band
- Optional assessment at progressive rates if lower
- tax year basis
- Withheld at source
- filing deadline
- Usually none — withholding is final
- residency basis
- Residents: worldwide investment income at the same flat rates
- regime flag
- No saver's allowance — the flat rate applies from the first euro
Rates
How investment income is taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 27.5% | Gross | Dividends and profit distributions — final withholding |
| 25% | Gross | Interest on bank deposits and savings accounts |
| 27.5% | Gross | Bond interest, fund distributions, securities income |
| Progressive rates | Gross (half rate for dividends) | Optional assessment when your marginal rate is below the flat rate |
Residency
Residency trigger
Austrian banks withhold at source; foreign dividends and interest are self-assessed at the same 27.5% flat rate.
Non-resident treatment
Non-residents pay the 27.5% withholding on Austrian dividends (treaty relief typically to 15%); interest paid to residents of automatic-information-exchange countries is exempt from Austrian withholding entirely.
Notes
- Expenses connected to flat-taxed investment income are not deductible — the low rate replaces them.
- Capital repayments by companies are tax-neutral, reducing your cost base instead of counting as dividends.
- The progressive option covers all three investment-income types at once — you cannot cherry-pick.
FAQ
What is the dividend tax rate in Austria?
A flat 27.5%, withheld at source as a final tax — with an opt-in to progressive rates that pays off only when your marginal rate is below 27.5%.
How is bank interest taxed in Austria?
At 25% for deposits and savings accounts, withheld by the bank; securities interest and fund income carry the standard 27.5%.
Figures: tax year 2026, compiled from public sources. Not tax advice.