What are the income tax brackets in Austria for 2026?

Austria uses a progressive tax system where higher income is taxed at higher rates. Tax brackets vary by country - see the detailed breakdown on this page for exact thresholds and rates.

How much social security do I pay in Austria?

Social security contributions in Austria are typically split between employer and employee. The exact rates depend on various factors including income level and type of contribution.

Are there any tax credits available in Austria?

Yes, Austria offers various tax credits and deductions that can reduce your tax liability. Common credits include general tax credits, labor credits, and family-related deductions.

Official 2026 Rates

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

18.07%

Combined social security deduction from gross salary

Contribution Ceiling (Hochstbemessungsgrundlage)

Social security contributions are capped at EUR 6,930/month (EUR 83,160/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)

EUR 496/year

Automatic deduction for all employees

Commuter Allowance (Pendlerpauschale)

EUR 387 - EUR 3,672/year

Depends on distance to work and public transport availability

Family Bonus Plus (Familienbonus Plus)

EUR 2,000.16/child under 18

Significant tax credit for parents with children

Single Earner Allowance (Alleinverdienerabsetzbetrag)

EUR 572 + child supplements

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.

Calculate Your Take-Home Pay

Use our salary calculator to see exactly how much tax you'll pay based on these rates.

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