A. Tax scale
What amount is due as wage tax or income tax? Tax on taxable income is calculated according to the income tax scale. In any event, no tax is due on income up to €13,308 per year. There are six tariff levels for higher incomes. If tax deductions can be claimed, these only need to be deducted from the respective result.
What tax deductions are there? A tax deduction reduces the amount of income tax due.
The Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz) defines the following tax deductions:
Tax deductions in calendar year 2025
- Family Bonus Plus up to 18 years — €166.68/month
- Family Bonus Plus from 18 years — €58.34/month
- Transportation deduction — €487/year
- Increased transportation deduction — up to €838/year
- Transportation deduction bonus — up to €790/year
- Pensioner deduction — up to €1,002/year
- Increased pensioner deduction — up to €1,476/year
- Single-earner tax credit — €601/year (in case of one child)
- Single-parent tax credit — €601/year (in case of one child)
- Support money deduction — €37–€73/month and child
- Child deduction* — €70.90/month and child
- Child bonus for child deduction* — €60/month and child
- Multiple-child bonus — €24.40/month from the third child
* The child deduction and child bonus on the child deduction are paid together with the family allowance.
Tax deductions in calendar year 2026
- Family Bonus Plus up to 18 years — €166.68/month
- Family Bonus Plus from 18 years — €58.34/month
- Transportation deduction — €496/year
- Increased transportation deduction — up to €853/year
- Increased transportation deduction — up to €804/year
- Pensioner deduction — up to €1,020/year
- Increased pensioner deduction — up to €1,502/year
- Single-earner tax credit — €612/year (in case of one child)
- Single-parent tax credit — €612/year (in case of one child)
- Support money deduction — €38–€75/month and child
- Child deduction* — €70.90/month and child
- Child bonus for child deduction* — €61.60/month and child
- Multiple-child bonus — €24.40/month from the third child
* The child deduction and child bonus on the child deduction are paid together with the family allowance.
Single earners or single earners with children and single parents are entitled to the following annual tax deductions:
| Children | 2025 | 2026 |
|---|---|---|
| with one child | €601 | €612 |
| with two children | €813 | €828 |
| with three children | €1,081 | €1,101 |
| for each additional child | +€268 | +€273 |
How to calculate your tax for 2025
Tax rates 2025
| Income range | Marginal tax rate* |
|---|---|
| for the first €13,308 | 0% |
| for income over €13,308 and up to €21,617 | 20% |
| for income over €21,617 and up to €35,836 | 30% |
| for income over €35,836 and up to €69,166 | 40% |
| for income over €69,166 and up to €103,072 | 48% |
| for income over €103,072 | 50% |
| for income over €1 million | 55% |
* The marginal tax rate indicates the tax you can expect to pay when earning additional income in the respective tax bracket.
Tax deductions applicable to you (e.g. Family Bonus Plus, transportation deduction or pensioner deduction) need to be subtracted from the calculated tax. Pensioners with taxable pension income between €21,245 and €30,957 or between €24,196 and €30,957 per year must respect the phasing-in rule for pensioner deductions and increased pensioner deductions.
Tax regulations for inflation adjustment
Certain amounts in the Austrian Income Tax Act 1988 are adjusted annually to inflation. The inflation rate to be used for inflation adjustment is calculated from the annual inflation rates of the consumer price index published by the Federal Statistics Office in Austria.
The following values are included in inflation adjustment:
- The limiting amounts that are relevant for the application of the tax rates for income up to €1,000,000
- Single-earner and single-parent tax credit as well as support money deduction
- Transportation deduction, increased transportation deduction and surcharge on transportation deduction
- Pensioner deduction
- Refund of the single-earner and single-parent tax credit as well as social security refund and social security bonus
The following are also adjusted:
- The income limits for partner income for the single-earner tax credit and for the increased pensioner deduction
- The amounts for the phase-in of the increased transportation deduction, the surcharge on the transportation deduction and the pensioner deduction
- The tax-exempt amount for miscellaneous remunerations
- The child deduction
- The multiple-child bonus
- The family allowance