Some earlier reports — including a previous version of this article — said Austria's income tax brackets would not change for 2026. That was wrong. The official 2026 thresholds have been published, and they are higher than in 2025.
The Official 2026 Brackets
| Income (annual) | 2025 | 2026 | Tax rate |
|---|---|---|---|
| Tax-free up to | €13,308 | €13,539 | 0% |
| Up to | €21,617 | €21,992 | 20% |
| Up to | €35,836 | €36,458 | 30% |
| Up to | €69,166 | €70,365 | 40% |
| Up to | €103,072 | €104,859 | 48% |
| Up to | €1,000,000 | €1,000,000 | 50% |
| Above | €1,000,000 | €1,000,000 | 55% |
All thresholds below €1 million rose by 1.73%. That is two thirds of the 2.6% inflation rate used for 2026. The rates themselves are unchanged.
What This Means for You
Because every threshold moved up, a slightly larger part of your income falls into the lower brackets. At the same taxable income, you pay a little less tax in 2026 than in 2025. From the brackets alone, the saving is about €84 per year at €30,000 taxable income and about €146 at €50,000.
Most tax credits were raised by the same 1.73%. For example, the traffic tax credit (Verkehrsabsetzbetrag) rose from €487 to €496. The Family Bonus Plus was not raised; it stays at €2,000.16 per child under 18.
What Else Changed for 2026
- The overtime tax exemption was cut substantially — see Overtime Tax Exemption Cut in 2026.
- The Pendlereuro commuter credit tripled from €2 to €6/km — see Pendlereuro Triples to €6/km.
- The tax-free employee bonus dropped from €3,000 to €1,000 — see Mitarbeiterprämie Cut.
For the complete list, see our full roundup: Every Austrian Tax Change for 2026. For a full explanation of how the brackets work, with examples, see Austria Income Tax Brackets 2026.
How to Estimate Your Actual Tax
Use our income tax calculator. It uses the official 2026 brackets, credits and social security rates.