Tax

Income tax, tariff, Lohnsteuer concepts.

Income tax (§ 33 EStG) is the central tax on earned income in Austria. Seven brackets ranging from 0 % to 55 % are adjusted annually since 2023 by two-thirds of the inflation rate (Inflationsanpassungsverordnung) to dampen bracket creep. Special payments (13th/14th salary) get the preferential treatment under § 67 EStG.

Key figures 2026

Tax-free threshold

€13.539

no tariff tax below this

Top marginal rate

50 % / 55 %

above €1m, capped at 55 % until 2029

Bracket adjustment 2026

+1,7333 %

= ⅔ × 2.6 % inflation

§67 special-pay opening rate

6 %

up to €24,380/yr post-SI

What changed 2026

Tax brackets raised by +1.7333 % (two-thirds of the 2.6 % inflation rate, § 33 Abs 1a EStG). More →
55 % top rate on income above €1m extended through 2029 (previously 2025). More →

Terms in this topic

Einkommensteuertarif (§ 33 EStG)
The progressive tariff formula, seven brackets from 0 % to 55 %, inflation-adjusted annually.
Flat-rate expenses (Basispauschalierung)
Expenses as a flat rate: 15 % of turnover (max EUR 63,000), 6 % for advisory work. Prior-year turnover up to EUR 420,000.
Negativsteuer (SI refund)
Credit for low earners, 55 % of SI back via the tax return, not on the payslip.
Profit allowance (Gewinnfreibetrag)
Reduces taxable profit: basic allowance 15 % up to EUR 33,000 (max EUR 4,950), above that investment-based. For the self-employed and sole proprietors.
Sachbezug (non-cash benefit)
§15 EStG non-cash benefit, lifts the tax + SI base, can pull cash net down at very high values.
Small-business flat rate (§ 17 Abs 3a)
Income-tax flat rate for small businesses: 45 % of income, 20 % for services. Turnover up to EUR 55,000.
Small-business VAT scheme
Below EUR 55,000 gross annual turnover: no VAT charged and no input-tax deduction. Relevant for Werkvertrag and sole proprietors.
Sonderbezüge (13th & 14th salary)
§67 EStG, lower income tax, yearly SI cap, what makes holiday and Christmas pay special.
Steuerkeil (tax wedge)
The total wedge between employer cost and employee net, a measure of payroll-cost burden.

Related terms

SI contribution rates (§ 51 ASVG)
SV
SI contributions are deducted BEFORE tax, the tax base is always gross minus SI minus deductible expenses.
Familienbonus Plus
Beihilfe
The Familienbonus Plus is subtracted directly from the tariff tax (€1-for-€1), not from the base.
Lohnkosten (employer total)
DG
On the employer side another ~30 % in payroll levies sits on top, income tax is only one piece of the total wage burden.

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