Austrian income tax rates for 2026
The brackets rose by 1.733% for 2026, two thirds of the 2.6% inflation measured for the year. They apply to annual taxable income from your regular salary, after social insurance and the €132 standard allowance for work expenses.
| Taxable income | Rate |
|---|---|
| Up to €13,539 | 0% |
| €13,539 to €21,992 | 20% |
| €21,992 to €36,458 | 30% |
| €36,458 to €70,365 | 40% |
| €70,365 to €104,859 | 48% |
| €104,859 to €1 million | 50% |
| Over €1 million | 55% (until 2029) |
Tax credits come off the tax itself: the commuter credit (Verkehrsabsetzbetrag) of €496 for every employee, the Familienbonus Plus of up to €2,000.16 per child under 18 (€700 for older children still receiving family allowance), and the sole earner or single parent credit of €612 with one child, €828 with two and €273 more for each further child.
Social insurance
| Employee contribution, 2026 | Rate |
|---|---|
| Health insurance | 3.87% |
| Pension insurance | 10.25% |
| Unemployment insurance | 2.95% (0% to 2% on low pay) |
| Chamber of Labour levy | 0.50% |
| Housing contribution | 0.50% (0.75% in Vienna) |
| Total | 18.07% |
Contributions are charged on pay up to the maximum base of €6,930 a month, plus €13,860 a year for the 13th and 14th salary, which carry 17.07% (no Chamber or housing levy). On monthly pay up to €2,225 the unemployment contribution is 0%, up to €2,427 it is 1% and up to €2,630 it is 2%.
Why the 13th and 14th salary are worth more
Most Austrian employees are paid 14 times a year: the 13th salary (holiday pay) and the 14th (Christmas pay) come on top of 12 monthly salaries. They are taxed at fixed low rates: the first €620 a year tax-free, the next €24,380 at 6%, the next €25,000 at 27% and the next €33,333 at 35.75%, after deducting their own social insurance. If the two payments together are no more than €2,615 after social insurance, they are tax-free. These rates apply up to one sixth of your regular annual pay, which for a steady salary is exactly two monthly salaries.
A worked example
On €4,000 a month, 14 times, outside Vienna and without children: social insurance is 18.07%, €722.80 a month. Annual taxable income is 12 × (€4,000 − €722.80) − €132 = €39,194.40. Tax: 20% × €8,453 + 30% × €14,466 + 40% × €2,736.40 = €7,124.96, less the €496 credit = €6,628.96, or €552.41 a month. The regular take-home pay is €2,724.79. The 13th and 14th salaries carry €1,365.60 of social insurance and only €360.86 of tax between them, so each pays out €3,136.77. Over the year you take home €38,970.98 of €56,000.
Getting money back
Payroll tax assumes the same salary all year. If your pay changed, you started mid-year, have work expenses above €132, commute (Pendlerpauschale), donate to charity or have low income, file the employee tax assessment (Arbeitnehmerveranlagung) through FinanzOnline; you can claim up to five years back. Low earners can get part of their social insurance refunded there (up to the commuter credit supplement of €804 in 2026). Families with little or no income tax may receive the Kindermehrbetrag instead of the full Familienbonus.