Tax credits

In order to counteract cold progression, the tax deductions (the single-earner, single-parent tax credit and support money deduction, as well as the transportation and pensioner deductions), including the phase-in limits and the social security refund will be adjusted by two-thirds of the inflation rate each year starting in 2023.

For the calendar year 2023, the tax deductions listed, including the phase-in limits and the social security refund, were increased by the full inflation rate of 5.2 percent. The child deduction and the family allowance are adjusted annually by the full inflation rate in accordance with Section 108f ASVG.

1. With the travel credit, there is a single level of credit for all employees, regardless of their income tax liability or cross-border commuter status. For those entitled to a flat-rate commuter credit, the travel credit is increased to 726 Euro (until 2022: 690 Euro) as long as income does not exceed 12,835 Euro (until 2022: 12,200 Euro) in the calendar year. The increased travel credit is tapered down to 421 Euro (until 2022: 400 Euro) incrementally between incomes of 12,835 Euro and 13,676 Euro (until 2022: 12,200 Euro and 13,000 Euro). From the 2023 assessment, the travel credit increases by 684 Euro (until 2022: 650 Euro) (supplement) as long as the taxpayer’s income does not exceed 16,832 Euro (until 2022: 16,000 Euro) in the calendar year. From the 2023 assessment, the supplement is tapered down incrementally to zero between 16,832 Euro and 25,774 Euro (until 2022: 16,000 Euro and 24,500 Euro) (this is taken into account only as part of the assessment process).
2. For a maximum pension income of 20,967 Euro (until: 2022: 19,930 Euro) per annum, maximum spouse income 2,315 Euro (until 2022: 2,200 Euro) per annum and no sole earner credit.
3. The sole earner and single parent credits increase by 232 Euro (until 2022: 220 Euro) in each case for each additional child.
4. In its ruling of 16 June 2022, C-328/20, the ECJ ruled that the indexation of family-related tax deductions (Family Bonus Plus, supplementary child credit, single-earner, single-parent credit and support money deduction) applicable as of 1 January 2019 for children who permanently reside or have resided in another EU member state or in the territory of another contracting party to the Agreement on the European Economic Area or Switzerland does not comply with EU law. Accordingly, the indexation was repealed retroactively (for more information, see "Questions and answers on the indexation of tax deductions (→ BMF)^{German text}").
5. In the period from May 2022 to June 2023, there will be a temporary increase in the Eurocommuter credit of an additional 0.50 Euro per month per kilometer of one-way travel between home and place of work. For more information, see "General information on the commuter allowance (→ BMF)^{German text}".

Further links

• The Tax Book (→ BMF)^{German text}
• Tax rates and tax credits (→ BMF)^{German text}
• Tax credits in detail (→ BMF)^{German text}