Tax deductions – Tax scales and tax deductions | Austrian Tax Book 2026

B. Tax deductions

Family Bonus Plus

Amount:

€166.68 per month (€2,000.16 per year) for children up to their 18th birthday
€58.34 per month (€700.08 per year) after their 18th birthday as long as this child is entitled to family allowance.

Entitlement: Parents subject to unlimited tax liability if the child is entitled to family allowance, i.e.:

The recipient of the family allowance
The spouse/partner of the recipient of the family allowance
The person liable for support money who pays statutory maintenance for the child and who is entitled to a support money deduction

The Family Bonus Plus can be considered for each child at most once annually in full, and reduces income tax at most to zero.

Information:

The Family Bonus Plus can be applied for during the year from the employer or within the framework of the employee tax assessment (see page 129).
When applying for the Family Bonus Plus from the employer, employees must submit Form E 30 and the corresponding evidence of family allowance or maintenance payments to the employer so that the Family Bonus Plus is considered in the current payroll accounting and the payable wage tax is reduced monthly.
When changing jobs, Form E 30 must also be submitted to the new employer.

When the child reaches the age of 18, the employer must stop taking the Family Bonus Plus into consideration. If the family allowance continues to be received for the child, the (reduced) Family Bonus Plus can again be applied for from the employer using Form E 30 and submitting the relevant evidence.

If the Family Bonus Plus is already considered by the employer in the payroll accounting, and if the circumstances on which the application is based change, the employee must report this to the employer. A change notification using Form E 31 is required, for example, in the following cases:

A change of person entitled to the family allowance
A lapse of the family allowance
A termination of a marriage or partnership
A lapse of the support money deduction entitlement

Important If you submit an employee tax assessment, you must apply for the Family Bonus Plus again—even if you have already requested it from your employer—, otherwise you may be liable to an unwanted additional tax payment.

Transportation deduction

Amount: €487 per year (€496 in 2026) Entitlement: Employees

Information: The transportation deduction is automatically considered by the employer. The expenses for journeys between home and work are thus compensated on a flat-rate basis. Employees who live further from their place of work or who are unable or cannot reasonably be expected to use public transport may, under certain circumstances, additionally claim a lump sum for commuters as income-related expenses (see page 47).

If you are entitled to a lump sum for commuters, the transportation deduction increases to €838 if your income does not exceed €14,812 in the calendar year. The increased transportation deduction decreases evenly between an income of €14,812 and €15,782 to €487. In the assessment for 2025, the transportation deduction will increase by €790 (supplement) if the taxpayer's income does not exceed €19,424 in the calendar year. The increased transportation deduction decreases evenly between an income of €19,424 and €29,743 to zero. The surcharge is considered in the context of the employee tax assessment.

Commuter euro

In case of entitlement to a lump sum for commuters (see page 47), there is also entitlement to a commuter euro. The commuter euro is two euros (or six euros as of 2026) per kilometre of the one-way distance between home and work per calendar year and can be seen in the commuter calculator.

Pensioner deduction

Amount: Up to €1,002 per year (up to €1,020 in 2026) Entitlement: Pensioners

Information: The pensioner deduction is automatically taken into account by the pension provider. For a pension income up to €21,245 per year it amounts to €1,002. The phasing-in rule, applicable to the pensioner deduction, is applied to pension payments between €21,245 and €30,957. If you receive only a small domestic pension in addition to a foreign pension, a phasing-in calculation may also be applied. Pensioner deductions may not be claimed for higher pension payments.

Increased pensioner deduction

Amount: Up to €1,476 per year (up to €1,502 in 2026) Entitlement: Pensioners

Information: The increased pensioner deduction is applicable if:

The current pension income does not exceed €24,196 during the calendar year
The pensioner lives in a marriage or registered partnership for more than six months in that calendar year, and the couple does not live separated on a permanent basis
The spouse or the registered partner has generated an income of no more than €2,673 per year, and
There is no entitlement to the single-earner tax credit

This tax deduction decreases evenly between a taxable current pension income of €24,196 and €30,957 to zero. Even if the benefits have already been considered during the year by the pension provider (to be requested from the pension provider using Form E 30), do not forget to also apply for these in the employee tax assessment (Form L 1). Failure to do so will result in unintentional subsequent taxation.

Note It is not possible to simultaneously claim the pensioner deduction and the transportation deduction. If within any one year income is derived from both active employment and from pensions, the transportation deduction is applicable.

Single-earner and single-parent tax credit

As a rule, the single-earner/single-parent tax credit is due if there is a claim to the child deduction pursuant to section 33(3) Austrian Income Tax Act 1988 for more than six months in the calendar year. From the second child onwards, there are tapered tax deductions.

Increase	Number of children	Single-earner tax credit / single-parent tax credit 2025
—	1 child	€601
2nd child: €212	2 children	€813
3rd child: €268*	3 children	€1,081

* The amount of €268 also applies to any further child. The amounts for 2026 can be found on page 27.

If you have a low income and are entitled to claim the single-earner or single-parent tax credit, payment of these amounts is possible.

Entitlement to single-earner tax credit

The single-earner tax credit is due if a taxpayer with at least one child as defined in section 106(1) Austrian Income Tax Act 1988 is, for more than six months in the calendar year,

Married or a registered partner and not permanently separated from his or her spouse/partner subject to unlimited tax liability, or
Lives in a domestic partnership with a person with unlimited tax liability, and
The spouse/partner receives income in 2025 of no more than €7,284 in the calendar year (€7,411 in 2026).

Only one person is entitled to the single-earner tax credit. If both persons meet the requirements (e.g. a student couple with one child), then only the person with the higher income may claim the deduction. If neither partner earns any income, or if their incomes are equal, the tax deduction may be claimed by the person running the household.

Entitlement to single-parent tax credit

Single parents are entitled to a single-parent tax credit. Single parents are taxpayers who do not live with at least one child for more than six months in a calendar year in a community with a spouse/partner and who receive family allowance for more than six months. Anyone who lives in a community with a (new) partner for more than six months in a calendar year is not a single parent.

How are the income limits calculated for the spouse/partner?

The taxable income including other remunerations such as 13th/14th monthly salary (if and insofar as it exceeds the tax-exempt amount of €2,570 per year in 2025; in 2026, the tax-exempt amount is €2,615), severance payments or pension settlements are relevant. This means that the following amounts are deducted from the gross remunerations in order to determine the limits:

Social security contributions
Contributions for voluntary membership in professional bodies (e.g. contributions to the Austrian Trade Union Federation)
Lump sum for commuters
Other income-related expenses (for employees the lump sum of €132 per year as a minimum)
Tax-exempt supplements for overtime, Sunday or holiday work, as well as supplements for night work, and tax-exempt pay for dirty, difficult or hazardous work

In the event of several types of income, the total amount of all income is relevant. Family allowance, childcare benefits, unemployment benefits and poverty relief assistance, as well as maintenance payments, like most other tax-exempt income, are not to be considered when calculating income limits.

By contrast, the income of the spouse/partner from private sales of real estate—unless exempted from taxation pursuant to section 30(2) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)—and from capital assets (e.g. interest, stock dividends) is to be considered even if they are subject to final taxation.

Furthermore, tax-exempt maternity allowance must be included in the income limit, as must tax-free income from temporary employment and tax-free earnings from privileged foreign employment, development aid activities and other activities that are tax-exempt on the basis of intergovernmental (e.g. double tax conventions) or international law (e.g. UNIDO, IAEA) agreements.

Example Calculation of the income limit for 2025 (taxpayer with one child)

Gross remunerations €8,400.00

− Social security contributions for current remunerations €1,285.08

− Lump sum for income-related expenses €132.00

− Other remunerations (incl. social security benefits) within the tax-exempt limit €1,200.00

Income from employment €5,782.92

If the taxpayer had also received a severance payment of €1,600, he/she would have exceeded the relevant limit on income, i.e. €7,284.


Gross remunerations	€8,400.00
− Social security contributions for current remunerations	€1,285.08
− Lump sum for income-related expenses	€132.00
− Other remunerations (incl. social security benefits) within the tax-exempt limit	€1,200.00
Income from employment	€5,782.92

How is the limiting amount determined upon marriage, divorce or death of a spouse/partner or in case of a registered partnership?

The income for the whole year is always taken as the basis for determining the limiting amount. If a marriage or marriage-like partnership is entered into in the course of a calendar year, the income of the spouse/partner or registered partner, both for the period before and after the marriage, must be included in the calculation of the limiting amount. Similarly, the income of the previous spouse/partner or registered partner must also be included upon divorce, or the remuneration received as widow's/widower's pension upon the death of a spouse/partner or registered partner.

How to claim the single-earner or single-parent tax credit?

Over the course of the calendar year, the employer or the pension provider can consider the single-earner or single-parent tax credit if you provide the employer with the relevant declaration (Form E 30).

If you have several parallel employment contracts, you may submit this declaration to one employer only. If the requirements for your claim cease to be met over the course of the year (e.g. because your spouse's/partner's income exceeds the relevant limits, or in case of divorce), you must inform your employer or the pension provider within one month (Form E 31). In addition, you must file a statement in connection with your employee tax assessment after the end of the year. After the end of the calendar year, you can retrospectively claim the single-earner or single-parent tax credit from the tax office by way of an employee tax assessment.

Note Even if your employer has already considered the single-earner or single-parent tax credit in the course of the year, you should not forget to fill in the data regarding the single-earner or single-parent tax credit in the tax return in the course of your employee tax assessment. Failure to do so will result in unintentional subsequent taxation of the single-earner or single-parent tax credit.

Support money deduction

Amount: €37/month for the first child, €55/month for the second child and €73/month for the third and each additional child receiving support. Entitlement: Support money payers Information: A support money payer is a person who demonstrably pays for a child not living in the household (alimony)

For whom neither the support money payer nor the spouse/partner of the same who lives in the same household receives a family allowance.
The support money deduction becomes effective only later in the course of the employee tax assessment.

For children not living in the household in European Union/European Economic Area (EEA) or Switzerland, the support money deduction may likewise be claimed. For children not living in the household outside the EU/EEA or Switzerland, one-half of the adequate child support can be claimed as an extraordinary burden.

What to keep in mind regarding the support money deduction?

You may only claim the full support money deduction if you have complied fully with your statutory obligation to provide support. Proof of payment must be provided upon request by presenting written documents (proof of payment, confirmation of receipt). If alimony was only paid in part, the tax credit is to be granted only for the months for which the full amount of alimony can be calculated. If half of the maintenance is paid for a calendar year, the support money deduction is therefore payable for six months.

No support money deduction may be claimed for grown-up children, if the parent living separately does not receive the family allowance. For more information on the support money deduction and how to apply for it, see page 131.

Child deduction

Amount: €70.90 per month and child (€70.90 in 2026). The child deduction is paid together with the family allowance. Entitlement: Persons receiving family allowance Information: The child deduction does not have a direct effect on the tax calculation. No child deduction may be claimed for children who reside abroad permanently (not only on a temporary basis, such as for training purposes). However, on the basis of Community-law provisions, EU citizens working in Austria and nationals of the EEA Member States (Iceland, Liechtenstein and Norway) as well as Swiss citizens whose children live permanently in an EU/EEA Member State or in Switzerland are also entitled to the child deduction in addition to the family allowance.

Child bonus for low-income earners

Amount: €60 per month and child (€61.60 in 2026) Entitlement: Low-income single earners or single parents Information: From 2025, single earners and single parents with children under 18 years of age who have only a low income will receive a supplement to the child deduction. This supplement amounts to €60 per month and child and is paid together with the child deduction.

Multiple-child bonus

Amount: €24.40/month for the third and each additional child (€24.40 in 2026). Entitlement: Persons receiving family allowance for a minimum of three children. The family income must not exceed €55,000. The spouse/partner of the person receiving the family allowance can apply for the multiple-child bonus when the person receiving the family allowance waives their entitlement. Information: The multiple-child bonus is paid by the tax office upon application.

What amount of family income is allowed when claiming the multiple-child bonus?

If the family income did not exceed the amount of €55,000 in 2025, there is an entitlement to the multiple-child bonus for 2026. The family income is the total taxable income of the person filing the claim plus the taxable income of the spouse/partner. However, the incomes are combined only if both spouses/partners live in the same household for more than six months during the calendar year in question. If either spouse/partner has a negative income, this does not reduce the family income (no compensation of losses).

How to apply for the multiple-child bonus?

As a rule, the multiple-child bonus has to be applied for each calendar year by way of the employee tax assessment (Form L 1 or FinanzOnline). If no employee tax assessment is carried out, you can claim the payment from the tax office using Form E 4. The spouse/partner of the person receiving the family allowance can likewise apply for the multiple-child bonus in his/her employee tax assessment (Form L 1 or FinanzOnline) or by using Form E 4. In this case, the recipient of the family allowance must submit a statement of waiver to the tax office upon request.

Example A taxpayer with four children, who receives the family allowance for the children, applies for the multiple-child bonus for 2026 in his/her employee tax assessment for 2025. In 2025, the taxpayer had an income of €25,000, while the spouse/partner had an income of €28,000; this adds up to a total family income of €53,000. As a result, the requirements are met, and the taxpayer or the taxpayer's spouse/partner may apply for the multiple-child bonus.