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Tax rate, personal allowance and tax threshold for municipal tax

Tax rate

The municipal tax amounts to 3 percent of the tax base.

Caution

In general, these rules also apply to entrepreneurs from EU Member States in Austria.

Personal allowance

If a company having one or more business establishments does not exceed the tax base (monthly wage total, recruitment fee, salary reimbursement) of 1,095 Euro no municipal tax is charged.

Tax threshold

If the entire monthly wage total amounts to no more than 1,460 Euro the personal allowance of 1,095 Euro is deducted and the 3 per cent municipal tax is charged on the remaining amount:

  • where the business establishments in which employees work are located in multiple municipalities, the personal allowance must be allocated by the entrepreneur to the business establishments in proportion to the wage totals,
  • for a company which has business establishments in more than one municipality, but whose employees only work at one establishment, the personal allowance is allocated in full to the latter establishment.
Translated by the European Commission
last update: 1 January 2021

responsible for content: Federal Ministry of Finance

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