Whether you’re an Austrian citizen or an expat, you are required by law to pay taxes if you earn money while living or working in Austria.
Income tax in Austria
If you earn money in Austria, you are required to pay tax on your income. The Austrian tax system operates a progressive tax rate in which the tax rate increases with taxable income. Most people will pay income tax through payroll deductions by their employer. If you have multiple professions, run your own business or are self-employed in Austria, you will be required to submit an annual tax return to work out your income tax (see below).
Austrian income tax rates 2020
The tax assessment base equals the sum of income minus income-related expenses, special expenses, extraordinary burdens and tax free amounts:
On other remuneration, particulary one-time payments (eg. 13th and 14th salary) up to one sixth of the yearly recurring payments (Jahressechstel) the following rates apply:
Social security payments in Austria
Any employment income earned in Austria is subject to compulsory social security contributions covering the following areas: pensions, sickness, unemployment, accident insurance, and certain minor contributions.
These payments are usually shared between you and your employer, with your employer typically contributing 50%. Your share of contributions will be withheld from your salary and transferred to the relevant organisations. The total contribution for social security generally amounts to around 20-22% of your salary up to a specified maximum limit.
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Family allowance in Austria
Austrian tax calculator can give you a good idea of how much money you’ll actually take home each month. This is an official online calculator of Austrian Chamber of Labour.
Please choose jährlich (yearly salary amount) under Mein Einkommen and enter the amount of your yearly salary below. After that press the button called Jetzt Berechnen and you will get your result in the table. You will find your yearly net salary in the cell which is in column Jahresbezug and in the row Netto.
Source: Tax information Austria – 2020, PWC Austria, www.pwc.at
Author: Sofia Ivanov is a blogger at AustrianCareer.at. She holds a MA in international business and also contributes photography to AustrianCareer.at.