Church Tax in Austria
Church tax, also known as church contribution, is an important financial obligation for members of Austrian Catholic and Protestant churches. The purpose of this tax is to support church operations, including social programs, property maintenance, and other church services.
The Church Tax in Austria has a long history, dating back to the time of the Habsburg Empire. Churches have always played an important role in social life, and through taxation, they ensured that the necessary resources were available for their activities. Based on agreements between the Austrian state and churches, the taxation system has been refined over the years, adapting to changing social and economic circumstances.
Who is obligated to pay?
Those obligated to pay church tax are persons who are officially members of the church. This primarily applies to Christian denominations, such as the Roman Catholic and Lutheran churches. The tax rate depends on income, and the churches collect it directly from their members, not through the tax office.
The church tax rate is determined based on annual income. For members of the Catholic Church, the tax is 1.1% of income, while members of the Lutheran Church pay 1.5%. However, the tax amount depends not only on income but also on family circumstances, such as the number of children and the benefits provided for single parents.
Deductions and Discounts
Certain deductions and exemptions can be applied to church tax. For example, the fixed deduction amount is 59 euros, which can be used by every taxpayer. In addition, deductions for children can also reduce the amount of tax. Single parents or family breadwinners receive additional exemptions, which also reduces the amount of tax payable.
Church contributions can be deducted from annual income tax up to 400 euros as a special expense. This can provide significant financial relief for households, especially for those with higher incomes who pay higher church contributions.
The only legal way to avoid church tax is to leave the church. Leaving the church involves an official procedure that must be initiated at the local parish. It is important to note that leaving the church is not retroactive, so the tax obligation for the period before leaving remains valid.
Realistic Examples of Calculating Church Tax
1st example:
- Gross salary: 2.300,00 €
- Net salary: 1.763,33 €
- Number of children: none
Contribution Calculation:
- Annual contribution base: 22.874,88 €
- Contribution (1,1%): 251,62 €
- Fixed deduction: -59,00 €
- Child-related discount: 0,00 €
- Annual contribution: 192,62 € (16,05 € / month)
In this case, the annual contribution base calculated based on income is 22,874.88 euros. The 1.1% contribution is 251.62 euros, from which a fixed deduction of 59 euros is subtracted. Since there are no children, no additional deduction can be applied, and the annual church tax will be 192.62 euros.
2nd example:
- Gross Salary: 3.000,00 €
- Net Salary: 2.316,18 €
- Number of Children: 1
Calculating Contribution:
- Annual contribution base: 29.494,80 €
- Contribution (1,1%): 324,44 €
- Fixed deduction: -59,00 €
- Child-related discount: -22,00 €
- Annual contribution: 243,44 € (20,29 € / month)
In this case, the gross salary is higher, so the annual contribution base is also 29,494.80 euros. The 1.1% contribution is 324.44 euros, from which the fixed deduction and child allowance are subtracted, resulting in an annual church tax of 243.44 euros.
3rd example:
- Gross salary: 4.000,00 €
- Net salary: 3.184,03 €
- Number of children: 3
Calculating Contribution:
- Annual contribution base: 39.326,40 €
- Contribution (1,1%): 432,59 €
- Fixed deduction: -59,00 €
- Child-related discount: -80,00 €
- Annual contribution: 293,59 € (24,47 € / month)
In this case, due to the higher gross salary, the annual contribution base is also higher, at 39,326.40 euros. The 1.1% contribution is 432.59 euros, from which the fixed deduction and the deduction for three children are subtracted, resulting in an annual church tax of 293.59 euros.
