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Generic Tax Name Personal income tax - Wage tax
Tax name in the national language Lohnsteuer
Tax name in English Wage tax (special method of levying income tax)
Member State AT-Austria
Tax in force since 1989/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

1988 Income Tax Law, BGBl. (federal law gazette) No 400/1988, as last amended by BGBl. No 105/2014.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The beneficiaries of the tax are the federal government (67.8%), the provincial governments (20.5%) and the local authorities (11.7%).

 
Geographical Scope

Austria, but see also information regarding taxpayer.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments


Comments

In principle, employees and pensioners are taxed by wage tax and self-employed persons are taxed by assessed income tax. The tax scale is the same. Wage tax has to be deducted by employer and transferred to the tax office. Regarding general information on unlimited and limited tax liability (see assessed income tax).

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

The tax object is the total amount of income regarding the category income from employment (see assessed income tax - seven categories of income). So in principal the tax object are wages and pension payments.

 Basis of assessment of wage tax is in general consistent with the basis of assessed income tax (see assessed income tax). Therefore expenses related to income are deductible as well as special expenses and extraordinary burdens and tax benefits. The wage tax is calculated by the employer. Employee have to inform the employer of all circumstances that have an effect on tax computation (e.g. marital status, children, sole earner, single parent, lump sum for commuters, decisions of tax office on tax deductions).

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Allowances
The basic yearly allowance for an individual amounts to: 11,000.00  EUR/National currency
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

A certain basic income retains tax-free for every person liable to unlimited income tax. According to tax scale in general annual income up to 11,000.00 € is tax-free.


Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

An employee generally receives money as compensation. The payment may also (partly) be made in kind (remunerations in kind). Remunerations in kind must be valued, therefore for most remuneration in kind, such as personal use of a company car, uniform values have been established. The Income Tax Act stipulates specifically that certain remunerations in kind are non-taxable, e.g. meals at the work place, laptop or desktop computers as well as mobile telephone which is used regularly for professional purposes but is also put to personal use.

Other non-taxable payments by the employer are:

  • Refunds for business trips remain non-taxable under defined conditions, e.g. travel costs (mileage allowance), per-diem allowances and overnight accommodation costs.
  • Use of facilities and premises (free of charge or at reduced price), which the employer makes available to all or specific groups of staff members, e.g. recreation homes and sanatoria, nursery facilities, sports facilities.
  • Payments by the employer to provident schemes (e.g. endowment insurances, life insurances, health insurances, shares in pension investment funds or contributions to pension funds) for all or specific groups of staff members up to certain amount (€ 300.00 per year and employee).
  • Gratuitous or reduced-price transfer of staff shares regarding the employers company up to a certain amount (€ 1,460.00 per year). Such staff shares must be kept for five years before they ultimately become non-taxable.
  • Part of the renumerations received for jobs abroad ( e.g. assembly job), carried out by companies in the EU/EEA region at preferential conditions. Every assignment abroad must be for more than one month and must comply with certain criteria.
  • The employers can grant a tax free payment of € 1,000.00 Euro (each year) for childcare to their employees (to children up to 10 years old). 

Tax credits and deductions (in addition to credits/deductions mentioned in Assessed Income Tax):

  • Employees subject to wage tax can discount an employee tax credit of € 54.00 per year, which is settled by employer automatically. Cross-border workers are entitled to a cross-border worker's deduction of the same amount. Employers entitled to these deductions may end up with a negative tax of up to € 110.00 if their income is low.
  • In addition the employer settles a traffic (commuting) tax credit (€ 291.00) automatically. It is a lump sum for the cost of commuting between home and work place. Employees who live at a greater distance from their work place or who cannot reasonably be expected to use public transport may claim an additional tax allowance for commuting expense (depending on the mean of transport and distance).
  • For Pensioners there is a pensioner tax credit of € 400.00 per year which is settled automatically by social security insitutions. Under certain conditions the pensioner tax credit amounts € 764.00 per year.
  • Sole earners and single parent's tax credit (see assessed income tax)
 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  11,000.00  EUR/Natcur
Rate: 0.00 %
Bracket 2 From  11,000.00  EUR/Natcur
To  25,000.00  EUR/Natcur
Rate: 36.50 %
Bracket 3 From  25,000.00  EUR/Natcur
To  60,000.00  EUR/Natcur
Rate: 43.21 %
Bracket 4 From  60,000.00  EUR/Natcur
To   EUR/Natcur
Rate: 50.00 %
Comments

marginal rates


Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends:
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable
Comments


Comments

Income in €

Average tax rate

Marginal tax rate

up to 11,000

0 %

-

11,000 to 25,000

-

36.50 %

25,000

20.44 %

-

25,000 to 60,000

-

43.214286 %

60,000

33.725 %

 

in excess of 60,000

-

50 %

     
 
Tax due date

Employer is obliged to deduct the income tax (=wage tax) monthly and transmit the tax to the tax office. Voluntary and under certain conditions obligatory assessment is possible.

 
Tax collector

Tax is deducted by employer monthly and transmitted to tax office. If assessment is opted same procedure as explained regarding assessed income tax.

 
Special features

For certain income-related expenses, special expenses or extraordinary burdens which the employer may already settle in the course of the ongoing payroll accounting a tax-office decision on an allowed deduction is necessary. Normally, the tax-office decision on an allowed deduction is served together with the tax assessment notice on the basis of the employee tax assessment. At the same time, employees receive a note to hand to the employer. The tax-office decision on the allowed deduction applies to the second year following the assessment period.

In general employee liable to wage tax can fill in an application for an employee tax assessment within a period of five years (electronically filling possible). This will be done, if the employee can expect a credit note. This will usually be the case, if

  • Different amounts as remunerations were received, and the employer did not make a recalculation.
  • Employee was not employed throughout the entire year.
  • Employee claim for allowances for income-related expenses, special expense or extraordinary burdens which have not yet been granted in the decision on allowances (as mentioned above).
  • Employee is entitled to a negative tax because of low income.
  • Employee is entitled to a sole-earner or single-parent deduction and/or the child supplement, and/or a lump sum commuters, which were not settled in the course of the ongoing payroll accounting.

But taxpayer is obliged to undertake a tax assessment, if income exceeds € 12,000.00, and

  • Other income in addition to income liable to wage tax in the total amount of more than € 730.00. Capital gains after withholding tax need not be included in the calculation.
  • Several incomes liable to wage tax were obtained, for which wage tax was not settled jointly.
  • Taxpayer was not entitled to a sole-earner or single-parent deduction for the calendar year, but this was settled.
 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d51ag

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 24,759.00 EUR 7.81
2011 23,031.00 EUR 7.46
2010 21,783.00 EUR 7.39
2009 20,996.53 EUR 7.34
2008 22,467.40 EUR 7.70
2007 20,607.40 EUR 7.30
2006 19,321.80 EUR 7.25
2005 18,022.30 EUR 7.12
2004 18,020.00 EUR 7.46
2003 18,026.20 EUR 7.80
2002 17,257.40 EUR 7.63
2001 16,467.50 EUR 7.48
2000 15,629.70 EUR 7.33

Comments