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D. Typology of income-related expenses

Work clothing

Typical work clothing or protective clothing may be claimed under expenses for working clothing. Clothing that is usually worn in private as well cannot be claimed for. This includes the cost of a costume or a suit, even if such clothing is required in the workplace. Income-related expenses are, for example:

  • Metalworkers' or painters' overalls, asbestos suits, mechanics' overalls and work overcoats
  • Protective footwear and socks for occupations requiring prolonged standing
  • Cooks' uniforms, butchers' aprons
  • Uniforms or workwear bearing a company logo that are similar in nature to uniforms, as well as associated accessories

Note

The cost of cleaning your work clothing is deductible only in the event of extraordinary soiling during work (e.g. the work clothing of a car mechanic). The cleaner's bill must be submitted for the expense to be claimed.

Tools and equipment

This includes items that are used mainly in the exercise of one's occupation.

Examples:

  • Computer
  • Motor vehicles for travelling salespersons/field sales staff
  • Knives for butchers or cooks
  • Motor saws for forestry workers
  • Musical instruments for musicians and music teachers

Appliances and devices that cost less than €1,000 are low-value assets. They may be written off completely in the calendar year in which they were bought. If the acquisition costs exceed €1,000 for any item that can be used for more than one year, the cost may be written off only over the expected service life (depreciation for wear—known for short in German as "AfA", Absetzung für Abnutzung).

Whenever work equipment or devices are bought after June 30th of any year, only half the depreciation for wear and tear may be written off for the first year (see the example under "Computer" below).

Work room

As a rule, the expenses for a study set up at home, including furniture, are not deductible. Expenses are deductible only if the study is used (almost) exclusively for professional purposes and constitutes the centre of all business and professional activities.

This applies, in particular, to home workers or accountants working from home, but not to teachers, judges, politicians or travelling sales staff. Expenses for a study that is necessary for work and located outside the home can be deducted as income-related expenses.

The following pro-rata costs can be considered as income-related expenses associated with a study:

  • Rental cost
  • Operating costs (heating, electricity, insurance, etc.)
  • Depreciation for wear (AfA) of furniture items; in case of owner-occupied houses or apartments also the depreciation for wear (AfA) regarding production costs
  • Cost of financing

Note

Furniture and objects used in private premises outside the tax-recognised study (e.g. desks, chairs, shelves, office cabinets, and cupboards) are not deductible. Only "typical" work equipment—such as, for example, computer equipment (including a computer desk)—is considered to be work equipment to the extent that it is used for professional activities. Keeping it on one's premises is therefore not an issue, even if there is no fiscally recognised study.

Cost of basic, further and re-training

When can training measures be claimed as part of your tax assessment?

Expenses for training measures are deductible as income-related expenses if they are costs for further training, basic training in a related occupation, or comprehensive re-training.

What are basic and further training costs, and when can they be deducted?

We speak of further training when an occupational activity is exercised and the training measure (e.g. occupation-related courses, seminars) serves to improve one's knowledge and skills in exercising that occupation. Further-training costs are considered income-related expenses. Basic commercial and office-management training (e.g. computer courses, Internet courses, obtaining the European computer license, introductory courses to accounting, cost accounting, payroll accounting or tax regulations) are deductible in the respective occupation, without the actual applicability of the knowledge being checked (see "Language courses" below).

We speak of basic training if the training measure serves to obtain knowledge that will facilitate the exercise of an occupation in the future. The costs may be deducted if they are related to an occupation that is currently being practised. Related occupations are, for example, hairdresser and chiropodist, butcher and cook, electrical engineer and IT engineer.

Whenever a training measure is related to an activity that has been pursued previously, there is no need to distinguish between basic and further training because both types of training are deductible. Basic and further training costs differ from re-training in that the former need not be "comprehensive", which means that specific occupation-related training elements are deductible as income-related expenses.

Below are some examples of deductible further and basic training expenses:

  • Costs involved when an electrician attends an upper-level secondary vocational school for electrical engineering
  • Costs involved when a building contractor who has attended upper-level secondary vocational school studies architecture at a technical university
  • Costs involved when a trained catering service provider attends a course on tourism management
  • Costs involved when a technician wishes to take the examination to become a civil engineer
  • Costs involved when a civil servant wishes to take the examination for the higher civil service or to attend an upper-level (general or vocational) secondary school or an appropriate university course for public servants

What are re-training costs, and when can they be claimed?

We speak of re-training if the measure is so comprehensive that it facilitates access to a new professional activity that is not related to one's previous activity, and if the goal is to actually practise a different profession.

Below are examples for deductible re-training measures:

  • Training of an employee who previously worked in the printing industry to become a nurse
  • Costs involved in the training of an agricultural worker to become a tool maker
  • Costs involved in the training of a seamstress to become a midwife
  • Costs involved if a student earns money from occasional menial jobs in order to finance his/her studies

Just like the terms basic and further training, the concept of "re-training" requires, as a rule, the taxpayer to pursue an activity during the year in which they undergo re-training, even if only menial or occasional.

Example

Commencement of a medical degree in October 2024 and commencement of employment as a taxi driver in February 2025. The costs of the degree can be offset as re-training costs from 2025 onwards.

Re-training costs are also to be considered for tax purposes if the other occupation targeted by the comprehensive re-training measure is not practised as the primary activity.

If a profession was previously practised then unemployment intervening in the meantime does not prevent the deductibility of re-training costs or basic and further training costs, irrespective of whether unemployment benefits were received. As a pensioner does not pursue gainful employment, educational measures of any kind (further training, basic training, or re-training) cannot generally be claimed as income-related expenses. Early retirees are the exception to this rule, if they are seeking re-entry into the labour market. The motives for re-training may be due to external circumstances (e.g. the employer restructures or even closes his operations for economic reasons), dissatisfaction with one's current job, or an interest in pursuing another career direction. However, the taxpayer must prove or substantiate that he/she actually aims at practising another profession.

This may be assumed in any case if

  • there is no further opportunity to realise income with the previous occupation due to unemployment, or
  • further realisation of income with the original occupation is jeopardised, or
  • the career or income outlook is improved by the re-training.

The re-training must be comprehensive. Costs incurred by the taxpayer for re-training measures that are sponsored from public funds (Labour Market Service = AMS) or work foundations, are always deductible as income-related expenses, to the extent of the costs borne by the taxpayer themselves. However, costs for courses or course modules for an unrelated occupational activity are not deductible as re-training costs (e.g. costs for attending a single nursing course that, as such, does not represent a change of occupation). Such costs are deductible only if they are costs for basic or further training.

Are the costs of studying tax-deductible?

The costs of studying at university can be deductible as costs of further training (e.g. a second study course closely linked to the first study course, for example if a lawyer studies business administration), or as costs of basic training in the event of a related occupation (e.g. if an industrial clerk studies business administration), or as re-training costs (e.g. if a librarian studies pharmacy).

In this connection, not only the tuition fees for a course but all costs related to the training measure (e.g. specialist literature and travel costs) are deductible.

How about costs for vocational schools?

Expenses incurred for vocational schools are deductible if they are connected to the exercised or a related occupation or constitute comprehensive re-training. For example, an accountant may claim the expenses incurred for attending an evening course at a lower or upper-level commercial college; a senior employee of an export company may attend a college of applied science in this field; or a technician may attend a course at a higher technical college.

Can costs for "private" training be claimed as well?

Costs of training relating primarily to the private sphere are not deductible. This includes, for example, the costs for obtaining a driving licence ("B" licence), sports courses or personality development training. The costs for obtaining a Category C driving licence are deductible only if you need the driving licence for the occupation that you exercise or that is related to it.

Which costs for training measures can specifically be claimed as income-related expenses?

The following, in particular, may be claimed:

  • Actual costs of courses (course fee)
  • Costs of course material, specialist literature
  • Costs of "working tools" (e.g. pro-rata costs of a PC)
  • Travel costs
  • Any per-diem allowances—for the first five days, if the course is held away from home or place of work (see "Travel expenses" below)
  • Overnight accommodation costs

When and for what income are training costs deductible?

Like all income-related expenses, the costs for basic, further and re-training are to be claimed for the year in which they were incurred. The further and basic training costs should be claimed as income-related expenses in connection with the current activity.

The costs for comprehensive re-training aimed at pursuing another occupation are so-called "anticipated income-related expenses", and this can be offset against other income (including from employment). In individual cases, further training costs can also be granted as anticipated income-related expenses (e.g. a course about the law on securities as part of an offer of employment in the securities department of a bank).

Tax-exempt promotional funding (e.g. grants) must be subtracted when deducting expenses for training in the course of an employee tax assessment. In other words, claim only the remaining amount!

Example

If the costs of your continued education amount to €200 and you receive a grant of €50 as a refund, you may only claim the remaining amount of €150 as costs for continued education in your employee tax assessment.

Works council contribution

The works council contribution is deducted when calculating wage tax; however, it does not reduce tax on current wage-tax settlements. It may be claimed in the course of an employee tax assessment.

Computer

Expenses for computers and their accessories (e.g. printers or scanners) are income-related expenses, to the extent that they are used for occupational purposes. If the computer is set up at home, the employee must prove or substantiate the extent to which he/she uses the computer for work-related purposes.

Without specific proof—if essential use as work equipment has been credibly substantiated—40% is assumed to be for private use. The purchase cost of a computer may be written off by way of depreciation for wear and tear (AfA) on the basis of a minimum period of use of three years. The PC, the monitor and the keyboard constitute a single entity. If accessories—such as a mouse, printer or scanner—are subsequently purchased for less than €1,000, they can be considered low-value assets and deducted in full for tax purposes (after deduction of a portion for private use).

All expenses in connection with the use of the computer such as a PC desk, software, memory sticks, manuals and paper, are also tax-deductible in accordance with occupational use. Please refer to the explanations in the chapter "Tax regulations for teleworking" (see page 100).

Example

Purchase of a personal computer, including monitor and keyboard, for professional use at home, for a total of €1,200 on 11 August 2025. The income-related expenses—without evidence of private use—are as follows, assuming a three-year service life:

Year Total 40% private use Deduction
Depreciation for wear (AfA) 2025* €200 €80 €120
Depreciation for wear (AfA) 2026 €400 €160 €240
Depreciation for wear (AfA) 2027 €400 €160 €240
AfA 2028* €200 €80 €120

* Six-month depreciation for wear and tear (AfA)

Double budgeting and trips home to see the family

If your place of work is too far away from your family residence to commute daily (in any case, if the distance is more than 80 km and the travel time with the means of transport actually used is more than one hour) and you therefore need an apartment near your place of work, you can claim the expenses for this apartment as income-related expenses. A prerequisite for double budgeting is that the taxpayer has two residences where households are kept. For example, the rent and overhead costs for an apartment rented for this purpose, but also items of furniture or hotel costs up to a monthly amount of €2,200 are deductible.

In addition, expenses for journeys home may be deducted as income-related expenses, up to a monthly maximum amount of €306. The travel costs are the expenses for the means of transport used (e.g. railway tickets, mileage allowance).

Married couples or persons living in a registered partnership or a marriage-like cohabitation (with or without a child) may deduct these income-related expenses on an ongoing basis, if both partners have fiscally relevant income (more than €7,284 per year, or more than one tenth of the taxpayer's income).

If the partner is not gainfully employed, the costs of double budgeting may generally be claimed for a period of two years. Single persons may claim the costs for a limited period of six months. In exceptional cases (e.g. in occupations with typically high turnover, such as the building trade; in the case of temporary employment contracts; in the case of a parent requiring nursing care at the family domicile; in the case of a family domicile abroad), a longer period may also be justified.

Specialist literature

Expenses for technical text books (or corresponding electronic media) may be claimed as income-related expenses. The receipt must give the precise title of the book. It is not enough to refer to "miscellaneous specialist literature". Literature that is also of general interest to persons not working in your profession, such as encyclopaedias or references, is not regarded as specialist literature. As a rule, expenses for newspapers are considered private expenses.

Bicycle

Work-related journeys (does not apply to journeys between home and work) with a private bicycle can be claimed as income-related expenses in the form of the mileage allowance. The mileage allowance is €0.50 per kilometre until June 2025 and €0.25 from July 2025, claimable up to a maximum of 3,000 kilometres per calendar year in 2025.

Travel costs

See "Travel expenses" below.

Risk money

Till shortages that the employee has to reimburse to their employer are considered income-related expenses.

Trade union dues

Trade union dues may be deducted as income-related expenses only if the employer has not withheld them and if they were not taken into account when calculating the wage tax.

Internet

The costs for using an Internet connection for work-related reasons are tax-deductible in accordance with occupational use. If a distinction is not possible, the allocation of costs must be estimated.

Provider fees, line costs (online fees) or the costs of lump-sum solutions (e.g. packages for Internet access, telephone charges) may be claimed on a pro-rata basis depending on the occupational use. Expenses for special areas of application related to the occupational use (e.g. fees to use a legal information system) are deductible in full. These income-related expenses are reduced by the teleworking flat rate. Please refer to the explanations in the chapter "Tax regulations for teleworking" (see page 100).

Motor vehicles

Costs due to the work-related use of a private motor vehicle may be claimed as income-related expenses either in the form of a mileage allowance (see table on page 62) or to the actually established amounts. The mileage allowance for passenger cars amounts to €0.50.

The mileage allowance covers the following costs:

  • Depreciation for wear
  • Fuels and oil
  • Service and repair costs
  • Additional accessories (winter tyres, car radio, navigation set, etc.)
  • Taxes, (parking) fees, toll fees and motorway sticker
  • Insurances of all kinds
  • Membership fees for motoring organisations
  • Financing costs

Mileage allowances may be deducted annually for a maximum of 30,000 km travelled on business. The actual costs incurred through occupational use may also be deducted instead of the mileage allowance.

Note

In addition to the mileage allowance, damage due to force majeure (especially costs of repair after a no-fault accident, stone chipping) that occurs in the course of an occupational assignment using the motor vehicle may also be claimed as income-related expenses.

A log book should be kept as proof of the business trips made in the course of a year. It should list the date, the mileage reading, the point of departure and destination, the purpose of the individual trip, and the kilometres travelled per day for business purposes. If proof of your use of the motor vehicle can be provided by other means (e.g. by submitting a statement of travel expenses to your employer), you do not need to keep a logbook.

Travel expenses

The Austrian Income Tax Act (Einkommensteuergesetz) defines a business trip as being an activity carried out by the employee away from their place of work, as instructed by the employer. The term "business trip" is relatively broad (see the chapter "Business trips", page 59). Travel expense reimbursements paid by the employer are tax-exempt within certain limits.

If the employee receives no or only part of the tax-deductible travel-expense allowances from the employer, they may claim their expenses in full or in part as income-related expenses. However, the requirements for a "work-related trip" must be met, which are stricter than for business trips. This restriction does not apply to travel costs, i.e. the employee may claim the costs for any work-related trip (except for travelling between home and work) as income-related expenses, unless they are reimbursed by the employer.

What is a work-related trip?

We speak of a work-related trip if an employee travels over a longer distance (a route with a minimum length of 25 km one way) for reasons related to their job. Domestic trips must have a minimum duration of three hours. Moreover, this must not create an additional centre of activity. Travel costs may be claimed also when travelling shorter distances and shorter times.

In contrast to a business trip, a work-related trip may also take place without instructions from the employer (e.g. further vocational training, in order to take up a new job). The taxpayer must pay for the costs that may be deducted as expenses ("travel expenses"), such as travel costs, additional costs for meals and accommodation.

Note

Tax-exempt travel-expense reimbursements by the employer reduce the deductible expenses.

Travel costs

Travel costs for work-related trips are considered as income-related expenses—if they are not reimbursed by the employer—to the actually incurred amount (rail, plane, taxi, motor vehicle), even though the distance may be less than the minimum requirement of 25 km and the duration shorter than the required three hours. Travel costs are also generally payable for journeys between two or more centres of activity. Travel costs between home and work, however, are fully compensated by the transportation deduction and any applicable lump sum for commuters and the commuter euro.

Please refer to the entry in section "Motor vehicles" above, for information on the deductible expenses when using one's own vehicle for occupational purposes (e.g. mileage allowance or actually incurred costs for the occupational use of one's vehicle).

Per-diem allowances

If work-related domestic travel lasts more than three hours, €2.50 may be claimed as a per-diem allowance for each commenced hour (up to a maximum of €30 per day). If a journey lasts 4.5 hours, for example, a per-diem allowance of €12.50 is due. This also applies if proof of higher expenses can be furnished. When travelling abroad, special rates apply (see "Trips abroad", page 62). If a trip abroad lasts longer than three hours, one-twelfth of the respective daily rate may be claimed for each commenced hour. The full amount of the per-diem allowance is due for 24 hours. Employees who do not receive tax-exempt travel expense reimbursements from their employer, or receive smaller amounts than the ones listed above, may claim the aforementioned amount from the tax office (the so-called "pro-rated income-related expenses"). However, per-diem allowances (as well as pro-rated income-related expenses) cannot be claimed if a new centre of activity is established. When no assignments at the new centre of activity take place during a period of six months, the employee becomes entitled to claim per-diem allowances again.

Overnight accommodation costs

Where it is necessary to spend the night away from home on a work-related trip, you can either claim the costs, including breakfast, by submitting the receipt or the lump sum for overnight stays of €17 per night. When staying abroad overnight, the relevant maximum rate for federal employees can be claimed per night if the expenses are not documented (see page 62).

If the employer provides overnight accommodation free of charge, no lump sum for overnight accommodation can be claimed. Possible additional expenses (e.g. for the breakfast) may, however, be claimed. Where no receipt is submitted, these costs are deemed to amount to €4.50 for domestic trips and €5.85 per overnight stay when travelling abroad.

Language courses

The costs for obtaining foreign language skills are deductible if the foreign language is required for occupational purposes (e.g. as a secretary, telephone operator, waiter, hotel staff or employee in an export department). Foreign languages are other languages than one's mother tongue, which may also include German in some cases. When attending a language course abroad, only the tuition fee, but not the accommodation and travel costs, may be claimed.

Study trips

Expenses for study trips are considered to be costs for further vocational training if they can be clearly distinguished from private trips and meet the following requirements:

  • The trip is planned and carried out either in the context of a training course, or in another manner that clearly reflects the occupational purpose.
  • It must be possible to apply the acquired knowledge to one's job.
  • The programme must be tailor-made specifically for the professional group concerned.
  • The programme must cover an average of eight hours per day, similar to normal working hours.

If these requirements are met, all costs incurred in this context (e.g. travel costs, accommodation costs, tuition fees, congress materials) may be claimed as income-related expenses. If the work-related part of a study trip is clearly distinguishable from the private part, the costs related to the occupational training are deductible as income-related expenses (e.g. pro-rata hotel and air-travel costs, tuition fees, congress registration fees).

Telephone, mobile phone

The total amount of the actual costs for work-related telephone calls may be claimed as income-related expenses. In the case of private phones (mobile phones), the work-related part of the purchase cost of the telephone as well as basic fees and call charges are deductible, if evidenced or credibly established.

Teleworker

The workplace of a teleworker who works exclusively at home and has no place of work at his/her employer's is his/her home. As a rule, trips to the company office are regarded as business trips.

Telephone charges, expenses for an Internet connection, and—if there is a study—the pro-rated costs for rental, electricity and heating, for example, may be claimed as income-related expenses in the employee tax assessment. Lump-sum reimbursements for expenses by the employer are classified as taxable income.