Wage Tax (Lohnsteuer)

The income tax withheld monthly from wages, with tariff key figures.

Definition

Lohnsteuer is not a separate tax but the income tax that the employer withholds monthly from employment income and remits to the tax office. The base is gross minus employee SI and any deductible expenses. Tax credits such as the Verkehrsabsetzbetrag or the Familienbonus are subtracted directly from the tax. The annual assessment (Arbeitnehmerveranlagung) reconciles it precisely at year end.

Tariff key figures (2026)

Tax-free up to€ 13.539per year, 0 % tariff tax
Entry tax rate20 %first bracket above the allowance
Top tax rate55 %for very high incomes
Transport tax credit€ 496per year, straight off the tax

Example: gross € 3.500,00/month, Vienna (2026)

At gross € 3.500,00/month in Vienna (no children, no credits), the regular monthly income tax is € 404,09, roughly 11,5 % of gross. The marginal rate on the next euro earned is 30 %. Over the year the income tax adds up to € 5.160,18 (including the preferentially taxed special payments).

See also

Try it in the gross-to-net calculator

Sources: §§ 33, 47, 66, 67 EStG, Lohnsteuerrichtlinien, Tarif 2026.