Tax system in Austria
Austria taxes residents on worldwide income through seven brackets from 0% to 55%. The top 55% rate above EUR 1 million runs through 2029, and social insurance near 18% comes off salary first.
Holiday and Christmas pay enjoy famous flat rates inside the annual sixth: 6% on the first slice, far below tariff tax. Companies pay a flat 23% with group taxation for holdings.
Shares, bonds, funds and crypto gains pay 27.5% flat at source, property gains pay 30%, and dividends face the same 27.5%. There is no wealth tax and no inheritance or gift tax.
Tax rates at a glance
- Income tax
- 0% - 55%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 27.5% / 30%
- Corporate tax
- 23%
- Dividend tax
- 27.5%
- VAT
- 20% / 10% / 13%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Austria is not low-tax for high salaries. The 55% top rate plus social insurance makes million-plus pay among Europe's most taxed.
- Residence turns on a dwelling, not just days. Keeping an Austrian flat available can mean worldwide taxation even with heavy travel.
- The 13th and 14th salary benefit is capped by the annual sixth. Pay above the sixth is taxed at tariff, so structuring bonuses as special payments has limits.
- Property transfer tax still bites without inheritance tax. Buyers pay 3.5%, and family transfers use stepped rates on official values.
Frequently asked questions
Is Austria a high-tax country?
For top salaries, yes: 55% above EUR 1 million plus social insurance. Middle incomes face moderate 20% to 40% bands with cheap bonus taxation, and companies pay 23%.
Does Austria have a wealth tax?
No. Austria abolished wealth tax in 1994 and inheritance and gift tax in 2008, and none has returned.
Which taxes matter most in Austria?
The main ones are progressive income tax with social insurance, 23% corporate tax, 27.5% capital and dividend tax, 30% property-gains tax and 20% VAT.