Current values: income tax/corporation tax 2024

Income tax rate (valid 2024)

Simplified tax calculation in EUR:

Annual income        x percent      minus fixed amount = tax (before deductible amounts)

up to 12,816            x 0%              -    0                        = 0

> 12,816 to 20,818    x 20%            -    2,563.20             = tax

> 20,818 to 34,513    x 30%            -    4,645.00             = tax

> 34,513 to 66,612    x 40%            -    8,096.30             = tax

> 66,612 to 99,266    x 48%            -    13,425.26           = tax

> 99,266 to 1 mil.     x 50%            -    15,410.58           = tax

> 1 million               x 55%            -    65,410.58           = tax

Examples:

Annual income 15,798.00 EUR x 20% = 3,159.60 EUR less  2,563.20 EUR = 596.40 EUR

Annual income 45,672.00 EUR x 40% = 18,268.80 EUR less  8,096.30 EUR =  10,172.50 EUR

As part of the eco-social tax reform, the decision was made to reduce the second and third income tax rates. The second tax rate was reduced on 1/1/2022 from 35% to 32.5% and again on 1/1/2023 to 30%. The third tax rate was reduced on 1/1/2023 from 42% to 41% and again on 1/1/2024 to 40%. The first tax rate was reduced from 25% to 20% ahead of this in calendar year 2020.

Fiscal drag

Fiscal drag is a term that describes the hidden tax increase that occurs when the thresholds of the progressive tax rate are not adjusted in line with the rate of inflation, meaning that increases in income are subject to a higher tax burden in real terms. Both the removal of fiscal drag and the application of indexation, i.e. adjustment in line with inflation, were adopted in 2022. The result is that the tax thresholds and deductible amounts are automatically increased each year by two thirds the prevailing rate of inflation. Use of the remaining third will be decided upon again each year and should mainly benefit people on lower and middle incomes.

In 2024, the two lowest tax thresholds were increased by 9.60% and 8.80% respectively, and the remaining tax thresholds increased in descending order from 7.60% to 6.60%. The threshold for the top tax rate remains the same.

Tax rate thresholds from 2024:

Deductions

Unless specified otherwise, the deductions are annual amounts and reduce the amount of tax calculated in accordance with the income tax rate.

Family Bonus Plus

The Family Bonus Plus was also increased as part of the eco-social tax reform. The increase came into effect on 1/7/2022. From what was previously 125 EUR per month or 41.68 EUR per month respectively, the following amounts have been applicable since 1/7/2022:

Until the end of the month in which a child turns 18, a monthly amount of 166.68 EUR (2,000 EUR per year)

After the end of the month in which a child turns 18, a monthly amount of 54.18 EUR

These amounts were indexed for children who live outside of Austria. On 16 June 2022, the European Court of Justice (ECJ) ruled that the indexing of the family allowance, the child deductions of the Family Bonus Plus and other family-related deductions was incompatible with EU law. Detailed information on the indexing of tax deductions can be found on the website of the Austrian Federal Ministry of Finance (BMF): https://www.bmf.gv.at/themen/steuern/arbeitnehmerinnenveranlagung/steuertarif-steuerabsetzbetraege/indexierung.html.

Deductions for sole earners/single parents (AVAB/AEAB)

If the income tax calculation results in a negative amount,
the AVAB/AEAB is to be reimbursed to that extent.

Deduction for child support – monthly

For child support payments for children not living with the claimant in their own household, if the
child is living permanently in Austria, in a member state of the European Union, a state
of the European Economic Area or Switzerland:

Social security reimbursement / negative tax:

If the calculated income tax is below zero, the deductible amount for sole earners or the deductible amount for single parents is to be reimbursed.

 The reimbursement for income tax below zero is a maximum of 463.00 EUR for employees (752.00 EUR when claiming a surcharge on the deduction for travel expenses) and 579.00 EUR for commuters. Pensioners can be reimbursed a maximum amount of 637.00 EUR.

Additional amount for children

From 2024, the additional amount for children is up to 700.00 EUR per child.  In order to claim this additional amount for children, a minimum of 30 days of taxable business or non-self employed income must be accrued in the calendar year or only benefits pursuant to the Childcare Benefit Act, maternity allowance or carer’s allowance are received throughout the entire calendar year. Moreover, the additional amount for children can only be claimed is there is an entitlement to the deductible amount for sole earners or single parents and a calculated tax of less than 700.00 EUR, or if both partners in a marriage/partnership have an income and the calculated tax on that income is less than 700.00 EUR each. In these cases, the additional amount for children is available only once per child for the person entitled to receive family tax credit.

Commuting allowance and Commuter euro (for active employees)

Please refer to the “Commuting allowance and commuter euro” information sheet for details.

Duty to submit a tax return

Tax deduction with limited tax liability

Corporation tax

- since 2005: 25% of the income

As part of the eco-social tax reform, the decision was made to reduce the rate of corporation tax to 24% in calendar year 2023, and to 23% for calendar years from 2024 onwards.

*) The minimum corporation tax for limited liability companies (GmbH) founded after 30 June 2013 amounts to 500.00 EUR annually in the first five years, or 125.00 EUR quarterly; in the following 5 years 1,000.00 EUR annually, or 250.00 EUR quarterly. From the 11th year, the minimum corporation tax of 1,750 EUR had to be paid (5% of 35,000). Following the reduction of the minimum share capital for limited liability companies (GmbH) to 10,000 EUR from 2024 by the 2023 Corporate Law Amendment Act (GesRÄG), the minimum corporation tax for all GmbHs (and the new FlexKap) is generally 500 EUR (5% of 10,000 EUR) from 2024.

Minor assets (Art. 13 Income Tax Act)

Accounting limit

Please refer to the “Types of Profit Assessment” brochure for details.

Stand: 01.01.2024