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Tax rates/Calculation formulae

The taxable income forms the basis of calculation for the tax assessment. Depending on the level of annual income, the following rates are applied in calculating income tax. The marginal tax rate indicates how additional income within each of the rate bands is to be taxed.

Portions of income above EUR 1 million per year are taxed at a higher tax rate of 55% for a limited period for the years 2016 to 2025.

Caution

In general these rules also apply to all citizens and traders from EU Member States in Austria.

Income tax rates

Income bands in EUR Marginal tax rate 2016 to 2019 Calculation formula 2016 to 2019 Marginal tax rate from 2020 Calculation formula from 2020
11 000 and below 0%   0%  
Above 11 000 up to 18 000 25%2) (Income – 11 000) x 1 750/7 000 20%1)2) (Income – 11 000) x 1 400/7 000
Above 18 000 up to 31 000 35%2) [(Income – 18 000) x 4 550/13 000] + 1 750 35%2) [(Income – 18 000) x 4 550/13 000] + 1 400
Above 31 000 up to 60 000 42% [(Income – 31 000) x 12 180/29 000] + 6 300 42% [(Income – 31 000) x 12 180/29 000] + 5 950
Above 60 000 up to 90 000 48% [(Income – 60 000) x 14 400/30 000] + 18 480 48% [(Income – 60 000) x 14 400/30 000] + 18 130
Above 90 000 up to 1 000 000 50% [(Income – 90 000) x 455 000/910 000] + 32 880 50% [(Income – 90 000) x 455 000/910 000] + 32 530
Above 1 000 000 55% [(Income – 1 000 000) x 0.55] + 487 880 55%3) [(Income – 1 000 000) x 0.55] + 487 530

Example

A trader has taxable income in 2019 of EUR 40 000. Tax is calculated according to the tariff rates as follows:

11 000 x 0% 0.00 
7 000 x 25% 1 750.00
13 000 x 35% 4 550.00
9 000 x 42% 3 780.00
Income tax for 2019 10 080.00

The tax calculated from the tariff is then reduced by any applicable tax credits. While special expenses and exceptional costs simply reduce the basis for the tax calculation, tax credits always reduce the tax itself.

Note

This is the standard approach to income tax calculation. In particular cases (such as when half-rate tax is being applied, when unemployment credit is being claimed temporarily or where there is additional foreign income), the tax calculation may be somewhat more complex. The applicable tax-free basic income is derived from the combination of tax rates and the credits that always apply to non-self-employed income; it can be rather higher where further credits apply.

Tip

On the website of the Federal Ministry of Finance (BMF), employees can calculate their net income with the aid of a gross/net calculator. The self-employed can calculate their annual income tax liability using the income tax table.
You can calculate your tax online using the tax calculation programs. Please bear in mind that the results of these calculations are merely guide values, since they cannot take account of all of the data relevant to the calculation. The only legally valid document is the assessment from the tax office that is responsible for you.

Translated by the European Commission
last update: 19 January 2021

responsible for content: Federal Ministry of Finance

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