Austria Income Tax Calculator 2026
Calculate your Austrian taxes: Einkommensteuer + Social Contributions
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Effective rate: 0%
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~18% (employee share)
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Income Distribution
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Complete Guide to Austrian Taxation
Austria has a sophisticated tax system combined with comprehensive social protection. This country of 9 million inhabitants at the heart of Europe offers an exceptional quality of life with high-level public services, funded by progressive taxation and moderate social contributions.
Austrian Einkommensteuer: 7 Brackets in 2026
Austria uses a progressive bracket system. Only the portion of income within each bracket is taxed at the corresponding rate:
High exemption threshold: the first EUR 12,816 is completely tax-free.
Austrian Social Contributions (~18%)
Social contributions are shared between employee and employer:
| Contribution | Employee | Employer | Description |
|---|---|---|---|
| Pensionsversicherung | 10.25% | 12.55% | Pension insurance |
| Krankenversicherung | 3.87% | 3.78% | Health insurance |
| Arbeitslosenversicherung | 3.00% | 3.00% | Unemployment insurance |
| Arbeiterkammer (AK) | 0.50% | - | Chamber of Labour |
| Wohnbauforderung (WBF) | 0.50% | 0.50% | Housing subsidy |
| Total | ~18.12% | ~21.23% | - |
2026 contribution ceiling: EUR 6,060/month (EUR 72,720/year)
13th and 14th Month Pay: Advantageous Taxation
Sonderzahlungen - A Major Tax Advantage
In Austria, employees mandatorily receive 14 salaries per year:
- 13th month (Urlaubsgeld): Holiday bonus, typically paid in June
- 14th month (Weihnachtsgeld): Christmas bonus, paid in November/December
- Special taxation: These bonuses are taxed at a flat rate of 6% (instead of progressive rates)
- Exemption: The first EUR 620 of each bonus is completely tax-free
This advantage can represent savings of EUR 2,000-5,000/year for an average salary.
Familienbonus Plus: EUR 1,500/child
Family Tax Credit
- Amount: EUR 166.68/month per child (EUR 2,000/year)
- Children 0-18 years: Full amount as long as family allowances received
- Children 18-24 years: EUR 58.34/month if child in education
- Can be shared: Between both parents (50/50)
- Cumulative: With other tax benefits
Familienbonus Plus directly reduces tax owed (not just taxable income).
Pendlerpauschale: Commuter Allowance
Home-Work Travel Deduction
Austria offers a generous deduction for commuters:
Kleine Pendlerpauschale
If public transport available
20-60 km: EUR 696/year
> 60 km: EUR 1,356/year
Grosse Pendlerpauschale
If car necessary
2-20 km: EUR 372/year
> 60 km: EUR 3,672/year
+ Pendlereuro: EUR 2 per km one-way distance (additional tax credit)
Other Important Tax Deductions
- Werbungskosten: Work-related expenses (EUR 132 flat rate or actual costs)
- Sonderausgaben: Donations (max 10% of income), insurance, training
- Kinderfreibetrag: EUR 440/child if Familienbonus not used
- Alleinverdienerabsetzbetrag: EUR 494 if sole household earner + EUR 175/child
- Alleinerzieherabsetzbetrag: EUR 494 for single parents + EUR 175/child
- Kinderbetreuungskosten: Childcare costs deductible (up to EUR 2,300/child/year)
Example Calculation: EUR 60,000 Salary
Single employee, no children, commute < 20 km
Effective total rate: ~35.2% | With 2 children: ~EUR 42,876 net (Familienbonus)
Austria vs UK Tax Comparison
| Criteria | UK | Austria |
|---|---|---|
| EUR 60,000 gross salary | ~EUR 42,500 net | ~EUR 38,900 net |
| Maximum marginal rate | 45% | 55% |
| Social contributions | 12% NIC | ~18% |
| 13th/14th month | Not standard | Mandatory (6% tax) |
| Child tax credit | Child Benefit | EUR 2,000/child direct |
| Commuter allowance | Limited | Generous Pendlerpauschale |
| Cost of living | High (London) | Moderate (Vienna affordable) |
| Wealth tax | None | None |
Austrian Tax Specifics to Know
No Wealth Tax
Austria has no wealth tax or inheritance tax for direct descendants.
Benefits in Kind
Company car: 2% of value/month added to income (1.5% if electric).
Klimabonus
Annual eco bonus paid to all residents (~EUR 200).
Severance Pay (Abfertigung)
1.53% of salary paid into a severance fund.
Conclusion: Austria offers an interesting balance between taxation and public services. The 13th/14th month pay at reduced rates, the generous Familienbonus Plus, and the absence of wealth tax partially compensate for the high marginal rates. The system is particularly advantageous for families with children.
Austria sits at the crossroads of Central Europe with a tax system close to the Germanic model. Compare with its neighbouring countries to evaluate fiscal opportunities.