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Taxes in Austria 2021

All foreign nationals working in Austria for more than six months are defined, for taxation purposes, as residents in Austria, and are therefore liable for taxation on all the income they derive from Austrian sources.

Income Tax: Austria’s individual income tax rates are progressive. As of 2021 there are 7 tax bands:
Annual income up to 11,000 €: 0%
11,001 to 18,000 €: 20.0%
18,001 to 31,000 €: 35.0%
31,001 to 60,000 €: 42.0%
60,001 to 90,000 €: 48.0%
90,001 to 1,000,000 €: 50.0%
over 1,000,001 €: 55%

Taxes will be deducted after contributions to the Public Insurance System.

Note that Austria has double taxation agreements in place with more than 40 countries. Expats who hail from a country with one such agreement in place will not have to pay tax on their Austrian-source income as well as any income they generate from within their country of origin.

Capital Gains: All Capital gains, dividend incomes, and income from interest are taxed at 27.5% or 25%.

Corporate Tax: Corporate tax rates are 25%.

V.A.T – The standard value added tax rate in Austria is 20%. There is a reduced V.A.T. rate of 13% and 10% for services, food and agriculture.

Other Taxes include Real Estate (Transfer) Tax and Stamp Duty.

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