How Austrian Income Tax Works — Einkommensteuer
Austria's income tax (Einkommensteuer) runs from 0% to 55%. Brackets are valorisiert (inflation-adjusted) annually — the 2024 tax-free threshold is €12,816 (raised from €11,693 in 2023). Social contributions add ~17.7% on top. Employees benefit from two key tax credits: Allgemeiner Absetzbetrag (~€1,054) and Arbeitnehmerabsetzbetrag (€900).
| Rate | Income (2024) |
|---|---|
| 0% | €0 – €12,816 |
| 20% | €12,817 – €20,818 |
| 30% | €20,819 – €34,513 |
| 40% | €34,514 – €66,612 |
| 48% | €66,613 – €99,266 |
| 50% | €99,267 – €1,000,000 |
| 55% | Above €1,000,000 |
- →Social contributions (Dienstnehmeranteil): pension 10.25% + health 3.87% + unemployment 3.0% = ~17.7%
- →Allgemeiner Absetzbetrag: up to €1,054 credit (income-dependent), Arbeitnehmerabsetzbetrag: €900
- →13th/14th salary (Sonderzahlungen): up to €2,100 taxed at 6% flat — significant advantage
- →Gewinnfreibetrag for self-employed: 15% of profits up to €33,000 exempt from income tax
- →GSVG for self-employed: ~26.15% social contributions (pension 18.5% + health 7.65%)
- →File Arbeitnehmerveranlagung at FinanzOnline by September 30 — most employees get a refund