Taxes in Austria
Last updated: March 2026
As of March 2026, Austria taxes residents on worldwide income using a progressive system with rates from 0% to 55%. The standard VAT rate is 20%, employees contribute approximately 18% of gross salary to social security, and the tax-free annual income threshold stands at 12,816 EUR. Austria has double taxation agreements with over 90 countries, and all employees receive 14 monthly salary payments with the 13th and 14th taxed at a preferential flat 6% rate.
Who Is Considered a Tax Resident in Austria?
You are considered a tax resident of Austria if you have your domicile (Wohnsitz) or habitual abode (gewoehnlicher Aufenthalt) in the country. As a rule of thumb, staying in Austria for more than 183 days in a calendar year establishes habitual abode. Tax residents are subject to unlimited tax liability, meaning their worldwide income is taxed in Austria. Non-residents are only taxed on Austrian-source income.
According to the Austrian Federal Ministry of Finance (BMF), Austria has double taxation agreements with more than 90 countries to prevent you from being taxed twice on the same income. If you are moving from a country with a treaty in place, certain income types may be exempt or eligible for a foreign tax credit.
What Are the Income Tax Brackets in Austria in 2026?
Austria uses a progressive tax system with seven brackets. For a detailed breakdown, see our income tax guide. Your effective tax rate depends on how much of your income falls into each bracket. The rates for 2024/2025 are as follows:
| Annual Income | Tax Rate |
|---|---|
| Up to 12,816 EUR | 0% |
| 12,816 – 20,818 EUR | 20% |
| 20,818 – 34,513 EUR | 30% |
| 34,513 – 66,612 EUR | 40% |
| 66,612 – 99,266 EUR | 48% |
| 99,266 – 1,000,000 EUR | 50% |
| Over 1,000,000 EUR | 55% |
Note: The 55% rate is a temporary solidarity surcharge that has been extended multiple times. All employees receive 14 monthly salaries (including a holiday and Christmas bonus), which are taxed at a flat 6% rate, a significant benefit of the Austrian system.
How Much Are Social Security Contributions in Austria?
Social security in Austria covers health insurance, pension insurance, unemployment insurance, and accident insurance. Contributions are shared between employer and employee. Based on data from the Austrian Social Insurance Authority (Dachverband der Sozialversicherungstraeger), employees contribute approximately 18.12% of gross salary for social security, while employers contribute around 21.23%. There is an annual earnings cap (Hoechstbeitragsgrundlage) above which no further social security contributions are charged. For 2025, this cap is approximately 6,060 EUR per month.
Self-employed individuals (Selbststaendige) and those on a freelance visa must register with the SVS (Sozialversicherungsanstalt der Selbststaendigen) and pay their own contributions, which cover health, pension, and accident insurance.
What Is the VAT Rate in Austria?
Austria levies VAT (Umsatzsteuer or USt) on most goods and services. The standard rate is 20%, with reduced rates of 10% and 13% applying to specific categories such as food, books, public transport, accommodation, and cultural events. Businesses with annual turnover below 35,000 EUR may qualify for the small business exemption (Kleinunternehmerregelung). You can file and manage your taxes through FinanzOnline, the official Austrian tax portal.
Explore Tax Topics
Related Guides
Income Tax Guide
Detailed brackets, deductions, and how to file your Arbeitnehmerveranlagung.
VAT in Austria
Standard and reduced VAT rates, exemptions, and the Kleinunternehmerregelung.
Freelance Visa
Requirements and process for self-employment in Austria.
Opening a Bank Account
How to open an Austrian bank account for salary and tax payments.