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Austria Personal Income Tax Guide (Einkommensteuer 2026)

Austria's Einkommensteuer (income tax) is a progressive tax with seven brackets: 0% up to €12,816, 20% from €12,816 to €20,818, 30% from €20,819 to €34,513, 41% from €34,514 to €66,612, 48% from €66,613 to €99,266, 50% from €99,267 to €1,000,000, and 55% above €1,000,000. Various deductions and tax credits reduce the effective burden. All amounts in EUR (de-AT locale).

Austria's Einkommensteuer is governed by the Einkommensteuergesetz (EStG). Tax residents are taxed on their worldwide income, while non-residents are taxed on Austrian-source income. The tax year is the calendar year. For related reading, see our Corporate Tax Guide → and Capital Gains Guide →.

2026 Income Tax Brackets

  • 0% (Existenzminimum): Up to €12,816 — income below this threshold is completely tax-free. This is the basic tax-free allowance (Grundfreibetrag).
  • 20%: From €12,816 to €20,818 — the first marginal bracket with a relatively low rate for lower-income earners.
  • 30%: From €20,819 to €34,513 — the middle bracket for moderate incomes.
  • 41%: From €34,514 to €66,612 — a significant step up in marginal taxation.
  • 48%: From €66,613 to €99,266 — applies to higher-income individuals.
  • 50%: From €99,267 to €1,000,000 — the near-top bracket affecting high earners.
  • 55% (Spitzensteuersatz): Above €1,000,000 — the top marginal rate introduced as a temporary measure from 2016 onwards.

Key Deductions (Werbungskosten, Sonderausgaben, Außergewöhnliche Belastungen)

  • Werbungskosten (work-related expenses): Employees receive a flat-rate allowance (Werbungskostenpauschale) of €1,000 per year. If actual expenses exceed this — commuting (€0.42/km for the first 20km, €0.38/km thereafter), home office costs, work equipment, professional training — itemise them on your tax return. A home office (Arbeitszimmer) is deductible if the room is the primary place of work.
  • Sonderausgaben (special expenses): Certain personal expenses are deductible: (a) contributions to church tax (Kirchenbeitrag), (b) certain insurance premiums up to €1,000 (€2,000 for joint filers), (c) housing loan repayments in specific cases, and (d) donations to charitable organisations up to 10% of taxable income. The flat-rate Sonderausgaben allowance is €60 (€120 for joint filers).
  • Außergewöhnliche Belastungen (extraordinary burdens): Deductible if expenses exceed the applicable self-retention (Selbstbehalt) based on income level. Includes: (a) medical expenses not covered by insurance (Krankheitskosten), (b) disability-related costs (Behinderung), (c) funeral costs (Bestattungskosten), (d) support for dependent relatives (Unterhaltszahlungen). The self-retention ranges from 6% to 12% of annual income.
  • Child-related deductions: The Familienbonus Plus provides a tax credit of up to €2,000 per child per year (discussed under tax credits). Additionally, the Kinderfreibetrag (child allowance) of €440 per child is available under certain conditions.

Tax Credits (Steuerabsetzbeträge)

  • Verkehrsabsetzbetrag (commuter tax credit): €400 per year for all employees. An additional Pendlereuro (commuter euro) of €2 per kilometre of commuting distance (one-way) is available if the distance exceeds 2km and no public transport is available or its use is unreasonable.
  • Alleinerzieherabsetzbetrag (single parent tax credit): €494 per year for the first child and €175 for each additional child (if the parent lives alone with the child and is entitled to family allowance).
  • Unterhaltsabsetzbetrag (maintenance tax credit): For parents paying child support — €29.09 per month for the first child, €43.82 for the second, and €57.18 for each subsequent child (2026).
  • Familienbonus Plus: A tax credit of up to €2,000 per child per year (€166.67 per month) for children entitled to family allowance (Familienbeihilfe). The credit is deducted from the parent's tax liability. If the credit exceeds the tax liability, the excess may be refunded (Negativsteuer) under certain conditions.
  • Pensionistenabsetzbetrag (pensioner tax credit): €400 for pensioners (with low-income additional amounts).

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