Income Tax Brackets in Austria for 2024

Austria is not considered to be a low-tax country. However, citizens derive a lot of value for the taxes they pay. This includes several high-quality public services such as healthcare, education and social security that are financed by tax revenues. Additionally, Austria offers several tax advantages to international companies that choose to carry out business in the country. In particular, eco-social tax reform in January 2022 offers tax relief and further reduction of taxes for entrepreneurs.

E-government in Austria offers citizens convenient access to various government services, enabling citizens to submit applications and provide required documents in a timely manner.

The taxation system in Austria is administered by the official tax body, the Federal Ministry of Finance. The Income Tax Act (Einkommensteuergesetz 1988) provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Austrian tax laws.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) brackets
• corporate income tax (CIT) rates
• capital gains tax (CGT) 
• withholding tax rates for residents and non-residents
• value-added tax rates

Headline Tax Rates in Austria

Personal Income Tax (PIT) Brackets in Austria for 2024

Austria operates a Pay-as-You-Earn system and the most important categories of income subject to taxation are income from employment and income from independent personal services (self-employment). 

An individual who is a regular resident in Austria is subject to unlimited liability to tax on their worldwide income. An individual who does not regularly reside in Australia is subject to tax on income from Austrian sources only.

The Austrian tax authorities offer taxpayers The Tax Book, providing tips and information on employee assessments and answers to frequently asked questions. Updated regularly, the Tax Book is available at tax offices from the end of February each year. It is also available as an e-book which may be downloaded free of charge.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Austria for 2024

Minimum Corporate Tax

In Austria, companies are subject to unlimited corporate income tax (CIT) on their entire income (both domestic and foreign) if they have their legal seat of business in the country. A non-Austrian corporate tax resident is subject to limited tax on certain sources of income. Rates of corporate income tax differentiate between income of the company and income of the shareholder. In Austria, a minimum CIT applies to companies who are in a tax-loss position and this can be carried forward and credited against future CIT burdens.

Austria’s Minimum Tax Act (“Mindestbesteuerungsgesetz” – “MinBestG”), applicable from December 2023, enables the complex framework of the European Union’s (EU) Directive on a global minimum tax to be implemented as part of national law. The global minimum tax rate is 15% and it is ensured through:

• the income inclusion rule (IIR)
• the undertaxed profits rule (UTPR)

Safe-Harbor rules, which provide protection from certain penalties, provide certain leeways within the Minimum Tax Act. Taxpayers must deal with their tax issues promptly and ensure the potential application of any Safe-Harbor regulations to their individual circumstances.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Austria

Withholding Tax Rates for Residents and Non-Residents in Austria

In Austria, withholding tax (WHT) applies to both residents and non-residents. Rates may vary depending on the item to which WHT applies and the recipient. Austria is a signatory to several double taxation treaties (DTTs) and rates may vary depending on the applicable treaty country. Austrian tax law also provides for alternative WHT relief, that is, refunds or exemptions.

As Austria is part of the EU, taxpayers are advised to take note of dividends paid to EU resident corporate shareholders. The implementation of the EU Parent/Subsidiary Directive means that domestic WHT is reduced to zero.

Value-Added Tax Rates in Austria

The general value-added tax (VAT) applicable is 20%. However, in certain exceptions outlined in the Value Added Tax Act (UStG), the tax rate applied may be either 10% or 13%.