7 tax brackets from 0% to 55%
Austria's hidden benefit: 13th and 14th month salaries (Weihnachtsgeld/Urlaubsgeld) taxed at just 6% flat—not the 50%+ headline rates. A €60,000 earner pays ~€12,500 income tax (~21%) plus €10,800 social security. The 55% Reichensteuer only hits €1M+ earners. No inheritance tax, no wealth tax. €2,000/child Familienbonus Plus credit.
Austria has progressive income tax rates from 0% to 55%, with the 55% Reichensteuer (millionaire tax) applying above €1 million. But here's Austria's major benefit: 13th and 14th month salaries (Weihnachtsgeld and Urlaubsgeld) are taxed at just 6% flat—making gross salaries worth significantly more than headline rates suggest. Social security runs ~18% for employees. A €60,000 earner pays roughly €12,500 income tax (~21% effective) plus €10,800 social security. Austria abolished inheritance tax and wealth tax—beneficial for family wealth transfers. Church tax applies at ~1.1% for Catholic/Protestant members. The Familienbonus Plus provides €2,000/child tax credit. Filing deadline is April 30 (June 30 online). Use our calculator to estimate your Austrian tax liability.
| Taxable Income | Tax Rate |
|---|---|
| €0 - €12,816 | 0% |
| €12,816 - €20,818 | 20% |
| €20,818 - €34,513 | 30% |
| €34,513 - €66,612 | 40% |
| €66,612 - €99,266 | 48% |
| €99,266 - €1,000,000 | 50% |
| Over €1,000,000 | 55% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
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Get Paid as a Contractor →Austria has 7 brackets: 0% up to €12,816, 20% on €12,816-20,818, 30% on €20,818-34,513, 40% on €34,513-66,612, 48% on €66,612-99,266, 50% on €99,266-1,000,000, and 55% above €1 million. The 55% 'Reichensteuer' (millionaire tax) was temporary but keeps getting extended.
Austrian employees receive Weihnachtsgeld (Christmas bonus) and Urlaubsgeld (vacation bonus)—effectively 14 monthly payments per year. These extra payments are taxed at just 6% flat (up to €2,100 total tax) instead of normal progressive rates. For a €60,000 earner, this saves roughly €3,000-4,000 annually compared to taxing everything progressively.
Austrian employees pay roughly 18% in social contributions: pension (Pensionsversicherung) 10.25%, health (Krankenversicherung) 3.87%, unemployment (Arbeitslosenversicherung) 3%, and other contributions. Employers add another 21%. Total burden is significant but covers comprehensive healthcare, pension, and unemployment benefits.
Austria provides generous family benefits: Familienbonus Plus gives €2,000/year tax credit per child (€650 for those with little/no tax liability), plus Kinderabsetzbetrag (€61.80/month per child) and Familienbeihilfe (family allowance) varying by age. Single parents get additional Alleinerzieherabsetzbetrag credits. These significantly reduce tax for families.
No—Austria abolished both inheritance tax (Erbschaftssteuer) and wealth tax (Vermögensteuer) in 2008. Real estate transfers to close relatives pay only 0.5-3.5% Grunderwerbsteuer (real estate transfer tax) on assessed value. This makes Austria attractive for family wealth transfers compared to Germany or France.
Last Updated: March 2026