How Austrian Income Tax Works — Einkommensteuer
Austria's income tax (Einkommensteuer) runs from 0% to 55%, with a tax-free threshold of €11,693. Social contributions add ~17.7% on top. Employees benefit from two key tax credits — the Allgemeiner Absetzbetrag (~€1,054) and Arbeitnehmerabsetzbetrag (€900). The 13th and 14th salary payments are taxed at a flat 6% up to €2,100.
| Rate | Income |
|---|---|
| 0% | €0 – €11,693 |
| 20% | €11,694 – €19,134 |
| 30% | €19,135 – €32,075 |
| 40% | €32,076 – €62,080 |
| 48% | €62,081 – €93,120 |
| 50% | €93,121 – €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