Tax Wedge (Steuerkeil)

OECD standard metric for the total tax + contribution burden on labor, as of 2026.

Definition

The tax wedge measures the share of total labour cost (gross plus all employer add-ons: DG-SV, municipal tax KommSt, DB, DZ, BV/MVK) that does not reach the employee as net pay. Formula: (total cost − net) ÷ total cost. The OECD compares it every year in Taxing Wages: for a single earner without children on the average wage, Austria was at 47.10 % in Taxing Wages 2026 (data for 2025), rank 4 behind Belgium, Germany and France (OECD average 35.10 %).

Example: gross €4,230/month (Vienna, 2026)

The median full-time salary 2026 (forecast), salaried, no children, with the 13th and 14th salary, computed as in the gross-to-net calculator.

Item
Amount
Employer cost a year
€76,816
Net a year
€40,610
Wedge in euros
€36,206
Wedge as a share of labour cost
47.13 %

The OECD uses the average wage, not the median, and data from an earlier year, so its figure (47.10 %) is not directly comparable.

See also

Try it in the gross-to-net calculator Try it in the employer-cost calculator
  • OECD, Taxing Wages 2026
  • § 33 EStG 1988
  • §§ 51, 53 ASVG (RIS)

Own calculation with the gross-to-net calculator.