Tax rates in Austria are more or less similar to other European countries. Below, an attempt has been made to provide an overview of the tax conditions. But to have updated and more accurate information, you should refer to the main relevant websites such as BMF.
1- Tax on personal income (Einkommensteuer)
Income can be obtained from the following methods:
Employment => Wage tax (Lohnsteuer) is mentioned in salary slip (Lohnzettel)
Self-employed work
Income from capital
Tax on income has a progressive rate between 0 to 55% (2023/2024) and depends on the received income during a business year.
Up to €11,693 => 0%
€11,693 to €19,134 => 20%
€19,135 to €32,075 => 30%
€32,076 to €62,080 => 42%
€62,081 to €93,120 => 48%
€93,121 to €1,000,000 => 50%
Over €1,000,000 => 55%
Some expenses can be deducted from income so that they are not subject to paying taxes:
Children’s allowance (Kindergeld)
Single parents allowance (Alleinerziehende Zulage)
Commuter flat rate (Pendlerpauschale)
...
Annual tax assessment:
A tax declaration (tax returns) should be submitted at the end of the year (Finanzonline). If for any reason you paid more tax during the year, the difference will be refunded.
2- VAT (Value added tax)
VAT is a tax which final consumer must pay on the purchased products or received services:
10% to 20% (2024):
20%: Most goods and services are subject to the highest tax rate
13%: Cinema ticket, swimming pool ticket etc.
10%: Rent, public transport ticket, groceries etc.
3- Corporation tax => Legal entities such as companies
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