Income Tax in Austria

Austria taxes income at progressive rates. For employees, the employer deducts wage tax (Lohnsteuer) from every pay slip, so many people never need to file a return. Self-employed people pay income tax (Einkommensteuer) after filing a return. Tax matters are handled by the Finanzamt Österreich through the online portal FinanzOnline. Since 2023 the tax brackets (except the top one) have been adjusted every year for inflation.

Who is taxed in Austria

• You are fully liable to tax (unbeschränkt steuerpflichtig) if you have a home (Wohnsitz) or your habitual stay in Austria. After 6 months in Austria you become liable in any case, backdated to the start of your stay. Nationality does not matter.
• Full liability means your worldwide income is taxed in Austria. Double taxation treaties decide which country may tax which income.
• Foreign employees with a work permit or employment contract for at least 6 months are treated as fully liable from their first day.

Tax rates 2026

| Annual taxable income | Rate on that slice | |---|---| | up to €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% | | above €1,000,000 | 55% (until 2029) |

Tax credits reduce the tax itself. For families these include the Familienbonus Plus (up to €2,000 a year per child under 18) and the Kinderabsetzbetrag, which is paid with the family allowance (2026).

Filing a return

• Employee tax assessment (Arbeitnehmerveranlagung): voluntary for most employees. It often leads to a refund, for example after a job change or when you claim work expenses, special expenses or commuter allowances. You can file it up to 5 years after the tax year (for 2025, until 31 December 2030).
• Automatic assessment: if your pay-slip data show a refund and you have no other income, the tax office may assess you without a return.
• Compulsory return (Pflichtveranlagung): required, for example, if your total income is above €14,769 (2026) and you had two jobs at the same time or other income above €730. The deadline is 30 April, or 30 June if you file online, of the following year.

Church contribution

Members of recognised churches and religious communities pay a church contribution (Kirchenbeitrag) to their church. You can deduct up to €600 a year (since 2024), and Austrian churches report the payments directly to the tax office.

Common pitfalls for newcomers

• Income from abroad (rent, a foreign pension, investments) must be declared once you are fully liable. Check the treaty with that country.
• Two jobs at the same time make a return compulsory if your total income is above the limit.
• The Familienbonus Plus must be claimed. If your employer did not apply it, claim it in your return.
• You attach no receipts when you file online, but keep them in case the tax office asks.

Official guidance: BMF: tax rates, BMF: personal tax liability, BMF: employee tax assessment, FinanzOnline