Income Tax in Austria in 2025

The Austrian income tax (Einkommensteuer) is calculated using a progressive system with multiple tax brackets. The tax is determined annually, and every natural person with a registered residence in Austria is obligated to pay it, provided that a tax liability arises based on their annual income.

Every natural person who has a residence in Austria is subject to income tax. By income, we mean the total amount of all revenue, reduced by special expenses, extraordinary burdens, and deductions for children. The tax rate is determined based on the income tax return.

2025 Income Tax Rates

In 2025, the tax-free threshold increased again to 13,308 euros. The income tax rates for 2025 are as follows:

• 0 – 13,308: 0%
• 13,308 – 21,617: 20%
• 21,617 – 35,836: 30%
• 35,836 – 69,166: 40%
• 69,166 – 103,072: 48%
• 103,072 – 1,000,000: 50%
• Over 1,000,000: 55%

2024 Income Tax Rates

In 2024, the first 12,816 euros are tax-free, followed by increasing tax rates based on income brackets. In 2023, the tax-free threshold was 11,693 euros.

• 0 – 12,816: 0%
• 12,816 – 20,818: 20%
• 20,818 – 34,513: 30%
• 34,513 – 66,612: 40%
• 66,612 – 99,266: 48%
• 99,266 – 1,000,000: 50%
• Over 1,000,000: 55%

The tax rate is always applied to the difference between the current and previous tax bracket, making the income tax table progressive.

Single Seekers Discount

A single earner is someone who lives with a partner or spouse for more than 6 months and has at least one child for whom they receive family allowance for more than 6 months. Taxpayers who do not meet the single earner requirements are not eligible for the AVAB (Single Earner Tax Deduction).

AVAB Amount per Child in 2025

• 2025: 1 child €601 – 2 children €813 – each additional child €267
• 2024: 1 child €572 – 2 children €774 – each additional child €255
• 2023: 1 child €520 – 2 children €704 – each additional child €232
• 2022: 1 child €494 – 2 children €669 – each additional child €220

AVAB Amount per Child in 2024

• 2024: 1 child €572 – 2 children €774 – each additional child €255
• 2023: 1 child €520 – 2 children €704 – each additional child €232
• 2022: 1 child €494 – 2 children €669 – each additional child €220

Workplace Lump Sum (Arbeitsplatzpauschale)

Self-employed professionals working from home can deduct up to 1,200 euros annually from their taxes for maintaining their work environment (Arbeitsplatzpauschale). This innovation allows self-employed individuals working from home to also take advantage of a tax deduction.

Knowledge of tax regulations and deductions is crucial for optimizing tax burdens. The Austrian tax system is constantly changing, so it’s important to always have up-to-date information on the latest tax laws.