How income tax works in Austria
Austria taxes residents on worldwide income. A dwelling kept available or six months of presence brings unlimited liability, regardless of nationality.
Tariff brackets on 2026 income run 0% to EUR 13,539, then 20%, 30%, 40%, 48% and 50%, with 55% above EUR 1 million. The 55% rate is extended through 2029 while the EUR 1 million line is not indexed.
Holiday and Christmas pay inside the annual sixth — about two monthly salaries — is taxed at 0% to EUR 620, then 6%, 27% and 35.75% by slice. Employers withhold monthly and the assessment settles credits and deductions.
Income tax brackets in Austria
| Bracket | Rate | Notes |
|---|---|---|
| Up to EUR 13,539 | 0% | Tax-free basic amount |
| EUR 13,540 to EUR 21,992 | 20% | Excludes social insurance |
| EUR 21,993 to EUR 36,458 | 30% | Excludes social insurance |
| EUR 36,459 to EUR 70,365 | 40% | Excludes social insurance |
| EUR 70,366 to EUR 104,859 | 48% | Excludes social insurance |
| EUR 104,860 to EUR 1,000,000 | 50% | Excludes social insurance |
| EUR 1,000,001 and above | 55% | Extended through 2029 |
Tax rates at a glance
- Zero band
- EUR 13,5392026
- Entry rate
- 20%
- Middle rate
- 40%
- Upper rate
- 48% / 50%
- Top rate
- 55%
- Social cap monthly
- EUR 6,930
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- The 55% line never moves with inflation. Every indexation round drags more earners toward the million threshold in real terms.
- Bonus pay above the annual sixth is taxed at tariff. Pushing extra salary into the 13th payment does not extend the 6% lane.
- Social insurance caps monthly near EUR 6,930, with special payments capped yearly. High earners stop paying social charges but keep climbing tariff brackets.
- Low pay gets reduced unemployment rates down to zero. Part-time and starter salaries face materially lower combined burdens than the tariff suggests.
Frequently asked questions
Do expats pay income tax in Austria?
Yes, if resident or earning Austrian income. A kept dwelling or six months of presence brings worldwide taxation with treaty tie-breakers.
What is the top income tax rate in Austria?
55% above EUR 1 million, extended through 2029, before 18.07% employee social insurance up to the cap.
How are 13th and 14th salaries taxed?
Inside the annual sixth they pay 0% to EUR 620, then 6%, 27% and 35.75% by slice — far below tariff rates. Amounts above the sixth face normal brackets.
Is salary taxed differently from investment income?
Yes. Salary follows progressive tariff plus social insurance, while financial gains and dividends pay flat 27.5% at source.