Taxes in Austria: The changes you should be aware of this season
From increased benefits to new tax rates, here's what you should keep in mind when filing your taxes (or tax return) this season in Austria
Tax season has started in Austria, and if you are filing your annual tax return hoping to get some money back, here are a few things that have changed this year.
Income tax brackets
Austria has made significant changes to its tax system, most notably abolishing the so-called "cold progression", which means that taxation is now tied to inflation.
Consequently, there are new tax brackets for 2024 (and they should be adjusted for inflation as needed in the coming years as well).
Those earning under €12,816 in Austria will not pay any tax on that amount – a raise from the previous threshold of €11,000. Earnings between €12,816 and €20,818 per year will be taxed at a rate of twenty percent, and earnings between €20,819 and €34,513, will be taxed at thirty percent.
READ ALSO: Can I deduct the cost of a German language course in my Austrian tax return?
Between €34,514 and €66,612 will be taxed at 40 percent. From €66,613 to €99,266, you will see a 48 percent tax rate. Any earnings above that ceiling will be taxed at a flat 50 percent.
Tax allowances are also higher
The Austrian government announced that allowances - certain tax write-offs families and workers get - would also be increased based on the inflation rate, as reported.
Here are the changes:
- Child tax credit (Kinderabsetzbetrag): increased from €61.78 to €67.78
- Multi-child supplement (Mehrkindzuschlag): increased from €21.19 to €23.25
- Pensioner deduction (Pensionistenabsetzbetrag): increased from 868 to €953.93
- Transport deduction (Verkehrsabsetzbetrag): increased from €421 to €462.68
- Maintenance deduction (Unterhaltsabsetzbetrag): increased from up to €62 to up to €68.14
- Sole earner deduction (Alleinverdienerabsetzbetrag): increased from €520 to €571.48
- Single parent deduction (Alleinerzieherabsetzbetrag): increased from €520 to €571.48
Family bonus Plus (Familienbonus Plus)
Austria's Family Bonus Plus, a tax write-off for families with children, has also been increased for 2024. The bonus can be claimed yearly (€700 for children over the age of 18 and €2,000 for minors) in the following tax assessment (from 2025), or it can be claimed monthly already this tax season.
READ ALSO: What foreign residents in Austria should know about taxes
Don't forget the deadlines
The tax year in Austria starts on January 1st, unlike in some other countries, such as the UK, where it runs from April 1st.
If you submit your tax return in paper format, the deadline is April 30th of the following year. So, the deadline for your income in 2023 is April 30th 2024.
If you submit your return electronically (via FinanzOnline), the deadline is June 30th of the following year. For 2023, that is June 30th 2024.
Note that there can be different deadlines for those filing through a tax advisor. You can read more about tax deadlines HERE.
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Tax season has started in Austria, and if you are filing your annual tax return hoping to get some money back, here are a few things that have changed this year.
Income tax brackets
Austria has made significant changes to its tax system, most notably abolishing the so-called "cold progression", which means that taxation is now tied to inflation.
Consequently, there are new tax brackets for 2024 (and they should be adjusted for inflation as needed in the coming years as well).
Those earning under €12,816 in Austria will not pay any tax on that amount – a raise from the previous threshold of €11,000. Earnings between €12,816 and €20,818 per year will be taxed at a rate of twenty percent, and earnings between €20,819 and €34,513, will be taxed at thirty percent.
READ ALSO: Can I deduct the cost of a German language course in my Austrian tax return?
Between €34,514 and €66,612 will be taxed at 40 percent. From €66,613 to €99,266, you will see a 48 percent tax rate. Any earnings above that ceiling will be taxed at a flat 50 percent.
Tax allowances are also higher
The Austrian government announced that allowances - certain tax write-offs families and workers get - would also be increased based on the inflation rate, as reported.
Here are the changes:
- Child tax credit (Kinderabsetzbetrag): increased from €61.78 to €67.78
- Multi-child supplement (Mehrkindzuschlag): increased from €21.19 to €23.25
- Pensioner deduction (Pensionistenabsetzbetrag): increased from 868 to €953.93
- Transport deduction (Verkehrsabsetzbetrag): increased from €421 to €462.68
- Maintenance deduction (Unterhaltsabsetzbetrag): increased from up to €62 to up to €68.14
- Sole earner deduction (Alleinverdienerabsetzbetrag): increased from €520 to €571.48
- Single parent deduction (Alleinerzieherabsetzbetrag): increased from €520 to €571.48
Family bonus Plus (Familienbonus Plus)
Austria's Family Bonus Plus, a tax write-off for families with children, has also been increased for 2024. The bonus can be claimed yearly (€700 for children over the age of 18 and €2,000 for minors) in the following tax assessment (from 2025), or it can be claimed monthly already this tax season.
READ ALSO: What foreign residents in Austria should know about taxes
Don't forget the deadlines
The tax year in Austria starts on January 1st, unlike in some other countries, such as the UK, where it runs from April 1st.
If you submit your tax return in paper format, the deadline is April 30th of the following year. So, the deadline for your income in 2023 is April 30th 2024.
If you submit your return electronically (via FinanzOnline), the deadline is June 30th of the following year. For 2023, that is June 30th 2024.
Note that there can be different deadlines for those filing through a tax advisor. You can read more about tax deadlines HERE.
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