Income Tax Rates (Einkommensteuertarif, §33 EStG)
Definition
The Einkommensteuertarif under § 33 EStG is the progressive tariff formula applied to taxable income. Each euro falls into a bracket and is taxed at the marginal rate for that band, no single euro is ever taxed at the top rate across the whole income. Seven brackets from 0 % to 55 %. The first six thresholds are inflation-adjusted annually, 2/3 automatically via Inflationsanpassungsverordnung (BGBl. II), the final third allocated by ministerial decree. The € 1.000.000 "Reichensteuer" floor has been unchanged since 2016.
Tariff curve 2026
Brackets by year
Cells show the upper income bound for that bracket. 2026 read live from the calc engine; earlier years hardcoded (BMF tariff page); future years not yet set (»—«). The € 1.000.000 top-bracket floor has been unchanged since 2016.
Bracket shift per year
How much the bracket boundaries actually moved, computed directly from each year's stored brackets (averaged over the indexed brackets; the fixed €1 M threshold is excluded). This reflects the indexation as actually applied; the mechanism behind it is explained below.
Example across 2 years, taxable income € 40.000
Same income, three different tariff years, the difference is the direct effect of the inflation adjustment. Values computed directly from the bracket tables above.
At € 40.000, the 2026 tariff tax is 145,90 € lower than in 2025, roughly 0,4 ppt in effective burden. The marginal rate on the next euro stays at 40 % across these years.
How the inflation adjustment works
Since the 2022 tax-reform package abolished "cold progression", the first six brackets are reindexed annually. Inflation is measured July-to-June of the prior year. 2/3 of the adjustment happens automatically by statutory formula via ministerial decree; the final third can be politically allocated (e.g. boosting the lower brackets). For 2026: inflation was 2.6 %, of which 1.733 % (= 2/3) was automatically applied to all brackets except the €1,000,000 top.
Rate transitions: background
- The third bracket was cut from 41 % to 40 % in 2024 (2022 tax-reform package). Predecessor: 2023 from 42 % to 41 %.
- The 55 % top rate on income above €1m has been in force since 2016 and was extended through 2029 (Abgabenänderungsgesetz 2024). It reverts to 50 % from 2030 onward absent another extension.
- The €1m threshold itself is NOT inflation-adjusted since 2016, the only bracket outside the annual indexation. In real terms, it tightens every year.
Note: standard case vs. special cases
This page describes the standard case of tariff taxation. The calculation is modified in certain situations: Hälftesteuersatz (§ 37 EStG) for extraordinary income, Progressionsvorbehalt when receiving unemployment benefits temporarily, separate tariff application for foreign-source income under double-taxation treaties. The tariff tax is additionally reduced by applicable tax credits (Familienbonus, Verkehrsabsetzbetrag, AVAB/AEAB, etc.), the gross-to-net calculator models this in full.
See also
- Familienbonus Plus , the most consequential family tax credit, subtracted directly from the tariff result.
- Sonderbezüge (13. & 14.) , their own §67 staffel (6 / 27 / 35.75 %) instead of the progressive tariff.
- Wage-tax table , the tariff applied: tax, social insurance and net pay per month across all salary levels.
Sources: § 33 EStG 1988 (RIS), BMF Steuertarif & Absetzbeträge, BGBl. II Nr. 178/2023 (Inflationsanpassung 2024), BGBl. II Nr. 192/2024 (Inflationsanpassung 2025), BGBl. II Nr. 191/2025 (Inflationsanpassung 2026).