What taxes do individuals pay in Austria?

Taxes are abundant, but they serve a noble purpose: healthcare, social insurance, and all the benefits for which many seek Austrian citizenship. Let's delve into the details!

So, if you are a resident of Austria - meaning you spend 183 days a year in the country, have any type of residence permit, permanent residency, or rent an apartment - you are required to pay taxes on par with citizens.

Income Tax - from salary and other income

Taxes are collected on a progressive scale: the higher your income, the higher the percentage you contribute to the state.

Income tax rates for individuals in 2023:

Annual income < €11,693 - rate 0%
Annual income from €11,693 to €19,134 - rate 20%
Annual income from €19,134 to €32,075 - rate 30%
Annual income from €32,075 to €62,080 - rate 41%
Annual income from €62,080 to €93,120 - rate 48%
Annual income over €1 million is taxed at a rate of 50%, and higher - at a rate of 55%.

In Austria, 14 salaries are paid per labor contract, with the 13th and 14th being for summer and winter holidays. Income tax is not levied on these additional payments.

Important nuance: if you have registered as a sole proprietor (Einzelunternehmer) and work for yourself, these same rates apply to your income. If you plan to open a sole proprietorship in Austria, refer to our article on the Einzelunternehmer registration procedure.

Contributions for Social Needs

Another tax that cannot be avoided. It is divided equally between the employee - 18.12% and the employer - 21.23% and covers expenses in case of illness, disability, unemployment, as well as pension contributions.

The Federal Chamber of Labor in Austria has developed a convenient online net income calculator: enter your monthly salary and find out how much money you will receive after paying taxes and contributions. The calculator can also account for any exemptions you may have, such as family-related ones.

Real Estate Purchase Tax

It amounts to 3.5% of the transaction value unless the real estate is acquired as a gift.

Vehicle Taxes

Here, you can decide for yourself whether to buy a car or save on one of the taxes. Vienna and other Austrian cities are well-equipped for pedestrians and public transportation - the very infrastructure that residents' taxes support.

Shortlist of car taxes:

• VAT for buying a car - 20% of the price, included upfront
• Registration fee €195.5
• Fuel consumption tax - depends on the type of car and is included in its cost
• Transport tax - paid depending on the engine capacity
• Road tax

There is also vehicle insurance similar to liability insurance, but it's not a tax, more of an additional expense for vehicle owners.

Other (sometimes amusing) taxes paid in Austria

Tourist tax. If you've ever booked a hotel through Booking, you've likely seen the mention of a tourist tax, which is often already included in the room price. Each federal state in Austria sets the tax rate independently.

Dog tax. The same goes for federal states. Not everyone has learned to clean up after their pets in parks here, but in Austria, it's strictly enforced.

Television and radio tax. An interesting tax that you must pay if you have a television or radio at home! It might make you rethink having a projector :)