Church Tax in Austria (Kirchensteuer)

The church tax, also known as the church contribution, is an important financial obligation for members of the Austrian Catholic and Protestant churches. The purpose of this tax is to support the operations of the churches, including social programs, property maintenance, and other church services.

The Kirchensteuer in Austria has a long history that dates back to the Habsburg Empire. Churches have always played a significant role in social life, and taxation has ensured that the necessary resources are available for their activities. The taxation system has been refined over the years, adapting to changing social and economic circumstances based on agreements between the Austrian state and the churches.

Who is required to pay?

Those who are officially members of a church are required to pay the church tax. This primarily applies to Christian denominations, such as the Roman Catholic and Protestant churches. The tax rate depends on income, and the churches collect it directly from members, not through the tax office.

The church tax rate is determined based on annual income. For members of the Catholic Church, the tax is 1.1% of income, while members of the Protestant Church pay 1.5%. However, the amount of the tax also depends on family circumstances, such as the number of children and discounts available for single parents.

Deductions and Discounts

Certain deductions and discounts can be applied to the church tax. For example, a fixed deduction of 59 euros is available to all taxpayers. In addition, discounts for children can reduce the amount of tax. Single parents or primary breadwinners receive additional discounts, further lowering the tax payable.

The church contribution is deductible from annual income tax as a special expense, up to a maximum of 400 euros. This can provide significant financial relief for households, especially those with higher incomes who pay higher church contributions.

The only legal way to avoid the church tax is to leave the church. Exiting the church is a formal procedure that must be initiated at the local parish. It is important to note that leaving the church is not retroactive, meaning the tax obligation for the period before exiting remains valid.

Practical Examples of Church Tax Calculation

1. Example:

• Gross salary: 2,300.00 €
• Net salary: 1,763.33 €
• Number of children: none

Contribution Calculation:

• Annual contribution base: 22,874.88 €
• Contribution (1.1%): 251.62 €
• Fixed deduction: -59.00 €
• Child discount: 0.00 €
• Annual contribution: 192.62 € (16.05 € / month)

In this case, the annual contribution base calculated based on the salary is 22,874.88 euros. The 1.1% contribution is 251.62 euros, from which the fixed deduction of 59 euros is subtracted. Since there are no children, no additional discounts apply, resulting in an annual church tax of 192.62 euros.

2. Example:

• Gross salary: 3,000.00 €
• Net salary: 2,316.18 €
• Number of children: 1

Contribution Calculation:

• Annual contribution base: 29,494.80 €
• Contribution (1.1%): 324.44 €
• Fixed deduction: -59.00 €
• Child discount: -22.00 €
• Annual contribution: 243.44 € (20.29 € / month)

In this case, the higher gross salary results in a higher annual contribution base of 29,494.80 euros. The 1.1% contribution is 324.44 euros, from which the fixed deduction and the child discount are subtracted, resulting in an annual church tax of 243.44 euros.

3. Example:

• Gross salary: 4,000.00 €
• Net salary: 3,184.03 €
• Number of children: 3

Contribution Calculation:

• Annual contribution base: 39,326.40 €
• Contribution (1.1%): 432.59 €
• Fixed deduction: -59.00 €
• Child discount: -80.00 €
• Annual contribution: 293.59 € (24.47 € / month)

In this case, due to the higher gross salary, the annual contribution base is also higher at 39,326.40 euros. The 1.1% contribution amounts to 432.59 euros, from which the fixed deduction and the discount for three children are subtracted, resulting in an annual church tax of 293.59 euros.