Guide
How income tax works in Austria
Austrian income tax is progressive: the first €13 539 is tax-free, and each band above it is taxed at its own rate. Only the income inside a band is taxed at that band's rate.
The 2026 brackets
Income tax (Einkommensteuer) rises in steps. Each rate applies only to the slice of income that falls inside its band — so a higher bracket never pulls down the tax on the income below it.
| Taxable income (2026) | Rate on the amount in this band |
|---|---|
| Up to €13,539 | 0 % |
| €13,539 – €21,992 | 20 % |
| €21,992 – €36,458 | 30 % |
| €36,458 – €70,365 | 40 % |
| €70,365 – €104,859 | 48 % |
| €104,859 – €1,000,000 | 50 % |
| Over €1,000,000 | 55 % |
To see the tax on a specific figure, plus your average and marginal rate, use the Austria income tax calculator.
The tax-free amount
The first €13 539 of taxable income is taxed at 0 % in 2026. Because the bands stack, your average rate — total tax over total income — is always lower than the top band you have reached (your marginal rate).
The annual return (Einkommensteuererklärung)
Income tax is settled through the annual return, filed with the Finanzamt — usually online via FinanzOnline. The self-employed, and anyone with income beyond a single employer, file it themselves; you then receive an assessment notice (Bescheid) confirming the tax due or refunded. Deadlines fall in the following year and can be extended if a Steuerberater (tax adviser) files for you.
SVS contributions are separate
Income tax is not the whole picture. The self-employed pay SVS contributions (health, pension, accident) and employees pay ÖGK contributions — a separate system with its own basis. Those contributions are largely deductible before income tax is calculated, but they are not part of the tax itself. If you are self-employed, budget for both.
Frequently asked questions
How much can I earn tax-free in Austria?
In 2026, income up to €13 539 is taxed at 0 %. Only income above each threshold is taxed at that band's rate, so your average rate stays below your top rate.
How do I file an income tax return?
The annual income tax return (Einkommensteuererklärung) is filed with the Finanzamt, normally online through FinanzOnline. The self-employed and those with additional income file it themselves; the deadlines are generally in the following year, and a Steuerberater can extend them. You receive an assessment (Bescheid) with the final tax due or refunded.
Is social security part of income tax?
No. SVS contributions (for the self-employed) and ÖGK contributions (for employees) are a separate system from income tax. They are calculated on their own basis and are largely deductible before your income tax is worked out — but they are not the same thing as the tax itself.
General information, not individual tax advice — for your own case, consult a Steuerberater. Sources: Einkommensteuertarif 2026 (§ 33 EStG); brackets and tax-free amount per WKO / BMF.