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 2026, the tax deductions listed, including the phase-in limits and the social security refund, were increased by two thirds of the inflation rate of 2.6 percent, thus by 1.7333 per cent. The child deduction and the family allowance are adjusted annually by the full inflation rate in accordance with section 108f ASVG. However, there will be no adjustment to the child deduction and family allowance for the years 2026 and 2027.
| Tax credits | |
|---|---|
| Transportation deduction | 496 Euro per annum in 2026 (487 Euro per annum in 2025)1) |
| Transportation deduction supplement (with incremental controls) | 804 Euro per annum in 2026 (790 Euro per annum in 2025)1) |
| Pensioner tax credit (Basic amount with incremental controls) | 1,020 Euro per annum in 2026 (1,002 Euro per annum in 2025) |
| Higher-rate pensioner tax credit2) (with incremental controls) | 1,502 Euro per annum in 2026 (1,476 Euro per annum in 2025) |
| Family Bonus Plus, per child below age of majority4) | 2,000.16 Euro per annum from 2022 (1,500 Euro per annum from 2019 to 2021) |
| Family Bonus Plus, per child above age of majority4) | 700.08 Euro per annum from 2024 (650.16 Euro per annum from 2022 to 2023; 500.16 Euro per annum from 2019 to 2021) |
| Single-earner tax credit with one child4) | 612 Euro per annum in 2026 (in 2025: 601 Euro per annum) |
| Single-earner tax credit with two children3)4) | 828 Euro per annum in 2026 (in 2025: 813 Euro per annum) |
| Single-parent tax credit with one child4) | 612 Euro per annum in 2026 (in 2025: 601 Euro per annum) |
| Single-parent tax credit with two children3)4) | 828 Euro per annum in 2026 (in 2025: 813 Euro per annum) |
| Child deduction4) | 70.90 Euro per month per child in 2025, 2026 and 2027 |
| Support money deduction4) | 38 to 75 Euro per month per child in 2026 (in 2025: 37 to 73 Euro per month per child) |
| Supplementary child credit, per child4) | 700 Euro per annum from 2024 (550 Euro per annum in 2022 and 2023; 250 Euro per annum from 2019 to 2021) |
| Eurocommuter credit (for those entitled to the flat-rate commuter credit) | 6 Euro (up to 2025: 2 Euro) per km of the one-way distance between home and workplace. |
- 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 853 Euro (in 2025: 838 Euro) as long as income does not exceed 15,069 Euro (in 2025: 14,812 Euro) in the calendar year. The increased travel credit is tapered down to 496 Euro (in 2025: 487 Euro) incrementally between incomes of 15,069 and 16,056 Euro (in 2025: 14,812 and 15,782 Euro). From the 2026 assessment, the travel credit increases by 804 Euro (in 2025: 790 Euro) (supplement) as long as the taxpayer’s income does not exceed 19,761 Euro (in 2025: 19,424 Euro) in the calendar year. From the 2026 assessment, the supplement is tapered down incrementally to zero between 19,761 and 30,259 Euro (in 2025: 19,424 and 29,743 Euro) (this is taken into account only as part of the assessment process).
- For a maximum pension income of 24,616 Euro (in 2025: 24,196 Euro) per annum, maximum spouse income 2,720 Euro (in 2025: 2,673 Euro) per annum and no sole earner credit.
- The sole earner and single parent credits increase by 273 Euro (in 2025: 268 Euro) in each case for each additional child.
- Questions and answers on the indexation of tax deductions (→ BMF)German text
Caution
A distinction must be made between the tax credits, which are deducted from the tax to be paid and thus essentially reduce tax by the absolute amount, and tax-free allowances which are deducted from the calculation base and hence reduce the income that is to be taxed. They have an effect only to the extent of the applicable tax band.
Further links
- The Tax Book (→ BMF)German text
- Tax rates and tax credits (→ BMF)German text
- Tax credits in detail (→ BMF)German text
Legal bases
Determination of the adjustment factor: section 108f of the Allgemeines Sozialversicherungsgesetz (ASVG)
Responsible for the content: Federal Ministry of Finance
