Austria — Tax: Income Tax

Why this matters

Understanding Austria's income tax system is crucial for relocating individuals to accurately plan and manage their taxes, avoiding potential penalties and financial surprises.

Key facts

• Top statutory personal income tax rate (national plus sub-national): 55% (2025)
• The top rate applies from about 17.4 times the average wage (2025)

Steps

1. Step 1: Determine Income Level — Individuals must determine their income level to determine the applicable tax rate. This includes income from employment, investments, and other sources.
2. Step 2: Calculate Taxable Income — Individuals must calculate their taxable income by subtracting deductions and exemptions from their gross income.
3. Step 3: Apply Tax Rates — The applicable tax rate is applied to the taxable income to calculate the income tax liability.

Costs

• Tax Return Filing Fee: €10-50 (varies by tax authority)
• Tax Advice or Representation: €500-2,000 (varies by service provider)

Timelines

• Tax Filing Deadline: April 30th of the following year (or June 30th with a penalty)

Required documents

• Tax identification number (Steuer-ID)
• Proof of income (e.g. employment contract, payslips, investment statements)
• Proof of expenses and deductions (e.g. receipts, invoices)

Common mistakes

• Failing to report all income or claiming incorrect deductions
• Not filing the tax return on time or incorrectly

What this figure does not cover

This is the top marginal rate only. The lower brackets, allowances, social security contributions, special regimes for new residents or expatriates, and how tax residency is decided are not covered here. Check the national tax authority for your situation.