Austria (AT)
Austria is a landlocked Central European republic of nine federal states (Bundesländer), renowned for its stunning Alpine landscapes, imperial history, world-class classical music, and high standard of living.
Tax & Payslip Guide
Understanding your taxes in Austria — tax year January 1 – December 31.
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 13,541 | 0% | Tax-free allowance (Steuerfreigrenze) — no income tax below this threshold (2026, increased by 1.7333% cold-progression adjustment from €12,756 in 2025). |
| 13,542 | 21,992 | 20% | First bracket (erste Progressionsstufe). 2026 threshold increased from €20,818 in 2025. |
| 21,993 | 36,458 | 30% | Second bracket. 2026 threshold increased from €34,192 in 2025. |
| 36,459 | 70,365 | 40% | Third bracket. 2026 threshold increased from €66,612 in 2025. |
| 70,366 | 104,859 | 48% | Fourth bracket. 2026 threshold increased from €99,266 in 2025. |
| 104,860 | 1,000,000 | 50% | Top rate (Spitzensteuersatz). Standard top rate above €104,860. 2026 threshold increased from €99,267 in 2025. |
| 1,000,001 | ∞ | 55% | Additional surtax (Reichensteuer) on income above €1,000,000 (temporary solidarity tax, periodically extended by parliament). |
🏛️ Social Contributions
Contributions to ÖGK (Österreichische Gesundheitskasse). Combined employee + employer rate provides full public health coverage. Income ceiling: €6,930/month (2026 Höchstbeitragsgrundlage, increased from €6,450 in 2025).
State pension contributions to PVA (Pensionsversicherungsanstalt). Earnings after retirement age credited toward pension points. Income ceiling applies.
Funds Arbeitslosengeld (unemployment benefit) and AMS retraining. Rate stepped by income level — lower rates at lower incomes.
Work accident and occupational disease insurance. Paid entirely by employer (AUVA — Allgemeine Unfallversicherungsanstalt). Covers workplace accidents and commuting accidents.
Employer pays 1.53% of gross salary into the employee's individual Abfertigungskonto (severance account) every month under the Abfertigung Neu system. Employee can take the fund on any job change or retirement.
Contributes to the state social housing fund.
Mandatory membership contribution to the Arbeiterkammer (Chamber of Labour). Gives access to free legal advice, consumer rights support, and education subsidies.
Total social insurance deductions from gross salary on the employee side. Combined with income tax, expect ~35–42% total deductions at average salary levels.
🛒 VAT Rates
The 10% reduced rate applies to most basic necessities. Restaurants charge 10% on food but 20% on alcohol. Takeaway food: 10%. Austrian VAT is called Umsatzsteuer (USt) or Mehrwertsteuer (MwSt).
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Austria has no general expat tax regime (unlike Netherlands 30% ruling). However, expatriate assignment packages may allow certain tax-free allowances if structured correctly (e.g. relocation cost reimbursements, housing allowances for temporary assignments). Non-domiciled individuals may benefit from remittance-basis rules in limited circumstances. Consult a Steuerberater for individual advice.
📋 Double Tax Treaties
Austria has double taxation agreements (Doppelbesteuerungsabkommen — DBA) with 90+ countries, including USA, UK, Germany, Australia, Canada, China, India, and all EU member states. Tax residency in Austria generally arises after 183 days of presence. Austrian residents pay tax on worldwide income.
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