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Income tax in Austria 2026
Seven brackets run from 0% on the first €13,539 to 50% above €104,859, with the 55% top rate reserved for income beyond €1 million — and every threshold rises with inflation each year.
Most employees receive 14 salary payments a year, and the extra two are taxed at just 6% — which is why Austrian effective rates undercut what the bracket table suggests.
Spouses are always taxed separately; family relief flows through credits like the €2,000-per-child family bonus rather than joint filing.
At a glance
- top rate
- 55% above €1,000,000 (50% above €104,859)
- entry band
- 0% up to €13,539
- tax year basis
- Calendar year
- filing deadline
- 30 April paper / 30 June electronic; adviser extensions to March of the second year
- residency basis
- Residents taxed on worldwide income
- regime flag
- Expat lump-sum deduction: 20% of pay up to €10,000
Rates
Income tax brackets (2026, inflation-indexed)
| Band (EUR) | Rate on this band | Note |
|---|---|---|
| 0 – 13,539 | 0% | |
| 13,539 – 21,992 | 20% | |
| 21,992 – 36,458 | 30% | |
| 36,458 – 70,365 | 40% | |
| 70,365 – 104,859 | 48% | |
| 104,859 – 1,000,000 | 50% | |
| Over 1,000,000 | 55% | Legislated through 2029 |
Marginal rates apply within each band.
13th/14th salary (special payments)
| Amount (EUR) | Rate | Note |
|---|---|---|
| First 620 | 0% | No tax if the two extra salaries total ≤ €2,615 |
| Next 24,380 | 6% | The band that matters for most employees |
| Next 25,000 / 33,333 | 27% / 35.75% | Standard rates beyond €83,333 |
Thresholds & allowances
- Family bonus plus€2,000.16 per child under 18 (€700.08 for older dependent children)
A direct credit against tax; cannot create a refund
- Traffic credit (employees)€496, rising to €1,300 for low incomes with add-ons
Commuter allowances of €696–€3,672 plus €2/km can stack on top
- Employee lump sums€132 standard expense deduction; €300 home-office furniture
Higher actual costs deductible instead
- Tax-free employer perksProfit participation €3,000/year; employee shares €3,000; childcare subsidy €2,000 per child
Profit participation still bears social contributions
- Self-employed profit allowance15% of the first €33,000 automatically (€4,950); up to €46,400 with qualifying investments
Plus a 10%–22% investment allowance on new assets
Residency
Residency trigger
A permanent home in Austria or a stay beyond 6 months makes you resident; ties are broken by the centre of vital interests, where personal links outweigh economic ones. Married couples always file separately.
Non-resident treatment
Non-residents pay Austrian tax on Austrian income with €11,077 notionally added back (neutralising the tax-free bracket). Nationals of European Economic Area (EEA) countries earning 90%+ of income in Austria — or with under €13,539 elsewhere — can elect full resident treatment.
Notes
- Bracket thresholds, credits and the social ceiling all index to inflation annually — real tax burdens no longer creep up silently.
- Church members pay a church contribution set by the churches (deductible up to €600).
- Business losses carry forward indefinitely; there is no carry-back.
- The expatriate decree alternatively allows itemised deductions: second-home costs to €2,200 a month, school fees to €110 a month, home-visit travel to €306 a month.
- Sales of a business held 7+ years on retirement or disability enjoy half your average rate or a 3-year spread.
- Employees with only one Austrian employment need not file at all — withholding settles everything.
FAQ
What are Austria's income tax rates in 2026?
0% up to €13,539, then 20%, 30%, 40%, 48% and 50% above €104,859, with 55% on income beyond €1 million. The 13th and 14th salaries are taxed separately at 6%.
Why are Austrian effective tax rates lower than the brackets suggest?
Because two of the usual 14 salary payments are taxed at a flat 6% (first €620 free) — for a €70,000 package that alone saves several thousand euros versus normal rates.
When is the Austrian tax return due?
30 April on paper or 30 June electronically for the previous calendar year — extended to 31 March of the second year when a tax adviser files.
Figures: tax year 2026, compiled from public sources. Not tax advice.