Taxes in Austria for employees and newcomers

Austria taxes income progressively. For 2026 the marginal rates are:

• up to €13,539: 0%
• €13,539 to €21,992: 20%
• €21,992 to €36,458: 30%
• €36,458 to €70,365: 40%
• €70,365 to €104,859: 48%
• €104,859 to €1,000,000: 50%
• over €1,000,000: 55% (limited until 2029)

Each rate applies only to the part of income within its band.

In most cases salaries in Austria are paid 14 times a year: twelve monthly salaries plus holiday pay and a Christmas bonus, usually set by collective agreement. These special payments are taxed favourably: within the so-called "one-sixth" limit, the first €620 a year are tax-free (2026) and the next €24,380 are taxed at a flat 6%, with higher flat rates above that.

• Family Bonus Plus (Familienbonus Plus): a tax credit of up to €166.68 a month (€2,000.16 a year) per child under 18 and €58.34 a month for older children as long as family allowance is paid for them (2026). You can claim it through your employer during the year with form E 30, or in the employee tax assessment. If you file an assessment, claim it there again even if your employer already applied it.
• Single-earner and single-parent tax credits: €612 a year with one child (2026).
• Commuter allowance (Pendlerpauschale) and commuter euro: if your commute is long or public transport is unreasonable, use the Ministry of Finance's commuter calculator to see whether you qualify.

• Voluntary: if you expect a refund, you can file within five years; for example, 2025 can be filed until the end of December 2030.
• Mandatory: for example if your income exceeded €14,769 in 2026, you had two salaries at the same time, or tax credits were applied incorrectly during the year. The deadline is 30 April of the following year, or 30 June if you file online.
• Automatic: if you only had wage income and did not file by 30 June, the tax office may carry out the assessment automatically when a refund is due. You can still file yourself within five years to claim further expenses.

File through FinanzOnline (form L 1). Do not attach receipts, but keep them for seven years in case the tax office asks. If you also had other income over €730 a year (for example from freelance work or renting), you file an income tax return (form E 1) instead.

Self-employed people pay income tax on their profit through an annual income tax return and are insured with the SVS. If you work remotely for an employer abroad, ask your employer and a tax adviser early how tax and social insurance are handled, because living in Austria can make you liable for Austrian tax.

The Finanzamt Österreich hotline for private individuals is 050 233 233 (Monday to Wednesday 7:30 to 15:30, Thursday and Friday 7:30 to 12:00). In-person visits require an appointment, which you can book online or on 050 233 700. Employees in Vienna can also ask the Arbeiterkammer Wien for tax advice. The Ministry of Finance publishes an annual Tax Book in English with tips for the employee tax assessment.