Austria Income Tax Bands
Complete guide to income tax rates, brackets, and thresholds in Austria for the 2026 tax year.
Income Tax Brackets (Lohnsteuer) - 2026
Austria uses a progressive tax system with seven brackets. The first EUR 12,816 is completely tax-free, with rates ranging from 20% to 55% for very high incomes.
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-Free (0%) | Up to EUR 12,816 | 0% |
| First Bracket (20%) | EUR 12,817 - EUR 20,818 | 20% |
| Second Bracket (30%) | EUR 20,819 - EUR 34,513 | 30% |
| Third Bracket (40%) | EUR 34,514 - EUR 66,612 | 40% |
| Fourth Bracket (48%) | EUR 66,613 - EUR 99,266 | 48% |
| Fifth Bracket (50%) | EUR 99,267 - EUR 1,000,000 | 50% |
| Top Bracket (55%) | Above EUR 1,000,000 | 55% |
Cold Progression Adjustment
Since 2023, Austria automatically adjusts tax brackets for inflation (cold progression). This prevents taxpayers from being pushed into higher tax brackets due to inflation-based wage increases.
Social Security Contributions (Sozialversicherung)
Pension Insurance (Pensionsversicherung)
10.12%Employee contribution to state pension
Health Insurance (Krankenversicherung)
3.87%Employee contribution to healthcare
Unemployment Insurance (Arbeitslosenversicherung)
3.00%Employee contribution to unemployment fund
Total Employee Contribution
17.99%Combined social security deduction from gross salary
Contribution Ceiling (Hochstbemessungsgrundlage)
Social security contributions are capped at EUR 6,060/month (EUR 72,720/year). Income above this limit is not subject to additional social security deductions.
13th and 14th Month Salary (Sonderzahlungen)
Privileged Taxation
- •13th Month (Weihnachtsgeld): Christmas bonus, typically paid in November/December
- •14th Month (Urlaubsgeld): Holiday bonus, typically paid in June/July
- •Tax Rate: Only 6% flat rate (after EUR 620 tax-free)
- •Social Security: Normal rates apply to special payments
This privileged taxation makes the 13th and 14th month significantly more tax-efficient than regular salary, as they are taxed at only 6% instead of progressive rates.
Tax Credits and Deductions (Absetzbeträge)
Traffic Deduction (Verkehrsabsetzbetrag)
Automatic deduction for all employees
Commuter Allowance (Pendlerpauschale)
Depends on distance to work and public transport availability
Family Bonus Plus (Familienbonus Plus)
Significant tax credit for parents with children
Single Earner Allowance (Alleinverdienerabsetzbetrag)
For single-income households with a non-working spouse
Minimum Wage (Mindestlohn)
Collective Agreements (Kollektivverträge)
Austria does not have a statutory national minimum wage. Instead, minimum wages are determined by sector-specific collective agreements (Kollektivverträge) negotiated between employer associations and trade unions.
Reference Monthly (14x)
EUR 2,100
Reference Annual (14 months)
EUR 29,400
Note: Actual minimum wages vary significantly by industry. The reference above represents the general recommended minimum.
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