Tax is the subject on which newcomers are either too relaxed or too worried. The truth sits in between. For an employee, a large part of the work is done by the employer. For a freelancer or a pensioner, there is a return, a scale and a treaty to understand. This article explains taxes in Austria as they work in 2026 for someone who has just arrived, with the official figures and their limits. It is general information, not tax advice, and complicated cases deserve a Steuerberater (tax adviser).
When do you become tax resident in Austria?
You are unbeschränkt steuerpflichtig, taxable on your worldwide income, if you have in Austria either a home (Wohnsitz), meaning accommodation you keep and use, or your habitual stay (gewöhnlicher Aufenthalt). The habitual stay begins once you stay more than six months, and in that case the first six months are taxable too. With a home, residence usually starts the day you move in.
So once you have a flat that you keep and use, and have registered it with your Meldezettel, Austria will generally treat you as a resident. If you also remain resident in another country for part of the year, the tax treaty between the two countries decides which one prevails.
What are the 2026 brackets for taxes in Austria?
Austrian income tax is progressive. For 2026, the marginal rates by slice of annual taxable income are:
| Taxable income (€) | Rate |
|---|---|
| up to 13,539 | 0% |
| 13,539 to 21,992 | 20% |
| 21,992 to 36,458 | 30% |
| 36,458 to 70,365 | 40% |
| 70,365 to 104,859 | 48% |
| 104,859 to 1,000,000 | 50% |
| over 1,000,000 | 55% (limited to 2029) |
For 2026 the bands (except the top one) were raised by 1.733%, two thirds of the 2.6% inflation rate. The increase is set each year and has sometimes been larger, so check the finance ministry page for the current scale. Credits (Absetzbeträge) come off the tax itself, for example the commuting credit (Verkehrsabsetzbetrag) of €496 for every employee and the Familienbonus Plus of €2,000.16 a year per minor child. Allowances (Freibeträge) are deducted from income. Do not mix the two.
How do employees pay, and what is the 13th and 14th month?
An employee does nothing at the start: the employer withholds Lohnsteuer (wage tax) every month and pays it to the Finanzamt Österreich. Most collective agreements pay 14 salaries a year. The 13th and 14th (Sonderzahlungen) are taxed at reduced rates within one sixth of annual pay: 0% on the first €620, 6% up to €25,000, 27% up to €50,000 and 35.75% up to €83,333. These rates do not apply if that sixth does not exceed €2,615 (2026). Social contributions apply too. See working in Austria.
If you are unsure whether your situation makes a return compulsory (two jobs, a foreign pension, rental income abroad), Moovy can go through the criteria with you and show the official pages. It cannot file for you or give a tax opinion on complex cases.
Do you file a return, and when?
Employees can file the Arbeitnehmerveranlagung (annual assessment, form L1). It often gives a refund, especially in the year of arrival: the monthly withholding is calculated as if you had earned the same amount all year. You can file for five years back (the 2025 assessment until the end of December 2030). If you had only wages and do nothing, the tax office may make an automatic assessment in the second half of the following year.
The assessment is compulsory in some cases: above €14,769 of annual income in 2026, notably with two salaries or pensions at the same time without joint taxation, or if a tax credit was wrongly applied. Other income, such as rent or freelance work, above €730 a year, means a full return (form E1). Keep for seven years the receipts for expenses you deduct.
The self-employed report the start of their activity to the Finanzamt within a month and receive a tax number, file the E1 the following year and pay advance instalments on 15 February, 15 May, 15 August and 15 November. The deadline for the annual return is 30 April on paper or 30 June via FinanzOnline. For the number, see tax number in Austria; for the trade side, freelance in Austria.
How do tax treaties change taxes in Austria?
Austria has a double taxation treaty (Doppelbesteuerungsabkommen) with each of the other 26 EU countries, the United Kingdom and Switzerland. Examples from the finance ministry list: France, signed 26 March 1993; Germany, 24 August 2000; United Kingdom, 30 April 1969; Switzerland, 30 January 1974; Spain, 20 December 1966. Many have been amended by the OECD multilateral instrument.
For each type of income (salary, public pension, private pension, rent, dividends), the treaty says which country can tax and how the other avoids double taxation, by exemption or credit. If you are an Austrian resident, you declare your worldwide income. A foreign income that the treaty leaves to the other country is usually counted for the rate (exemption with progression) and then exempted or credited. A treaty shares the tax; it never removes the declaration. In the year you move, you can be resident of two countries under their laws; the treaty decides using criteria such as your permanent home and centre of vital interests.
Are there special advantages for researchers?
Yes, for scientists and researchers whose arrival serves the public interest of science: the Zuzugsbegünstigung gives a 30% allowance on scientific income for five years, and the application must reach the tax office within six months of arrival. It is a narrow scheme, and it excludes in general university assistants without habilitation, lecturers and doctoral students. There is also a compensation for extra tax burden on foreign income for scientists, artists and athletes. A tax adviser used to cross-border files is recommended.
What other charges should you know?
- Church contribution (Kirchenbeitrag). Not a state tax: the church you belong to asks for it, up to €600 a year deductible. You have no obligation to declare your religion to the municipality. To leave a church (Kirchenaustritt) you declare it to the district authority or the Magistrat.
- Broadcasting contribution (ORF-Beitrag). €15.30 a month in 2026 per address where at least one adult has their main residence, with or without a television, plus a provincial levy in some provinces (none in Vienna). You do not need to register: the central register passes your address to the OBS, which collects it. Exemption is possible on request in some cases.
- Property tax (Grundsteuer). Owed by the owner and sometimes passed on in the running costs.
What to do in your first year
Open your FinanzOnline access through ID Austria. Keep your payslips and receipts. In spring of the following year, check whether your assessment is compulsory, and if you arrived mid-year, file for a refund. For foreign income, ask a tax adviser to read the treaty article that applies to you. The rest of the first-year checklist is in our guide to moving to Austria.
What do taxes in Austria look like for different profiles?
The employee with one job. Wage tax is withheld every month, you pay social contributions, and you can file the annual assessment for a refund. In the year of arrival, filing is rarely a waste of time.
The employee with two employers, or a salary plus a pension. Each payer withholds tax as if it were the only one, so the assessment becomes compulsory and may leave you with a balance to pay. Keep both payslips.
The freelancer. You report your activity to the Finanzamt and get a tax number, keep simple books (income and expenses are enough under the thresholds), declare in the following year and pay quarterly instalments. If you stay under €55,000 of turnover, you can invoice without VAT under the small business scheme. See freelance in Austria.
The retiree. The treaty decides who taxes your pension, and the return is compulsory when you have a foreign pension. See retire in Austria.
The remote worker for a foreign employer. Tax follows the treaty; social security follows EU coordination rules. Seek advice.
Which mistakes come up again and again?
- Believing you remain taxable only at home. Once you have a home in Austria, Austria taxes your worldwide income, and the treaty then shares it.
- Forgetting the assessment in the year of arrival. You have probably overpaid.
- Confusing credits and allowances. Credits reduce the tax, allowances reduce the income.
- Thinking a treaty removes the declaration. It does not.
- Not keeping receipts. Keep for seven years the receipts for expenses you deduct.
Tax rules and amounts change every year, and your treaty may change the answer. Before you take a decision that depends on tax, have your situation confirmed by a Steuerberater (tax adviser) or an accountant in Austria.
For the first steps of your arrival, including your tax access through ID Austria, see the guide to moving to Austria.