Income Tax (Einkommensteuer) in Austria in 2024

Income tax (Einkommensteuer) in Austria is calculated using a progressive system divided into multiple tax brackets. The tax is assessed annually, and every individual with a registered residence in Austria is required to pay, provided they have a taxable annual income. In 2024, the first 12,816 euros are tax-free, after which increasing tax rates apply based on income thresholds. In 2023, the tax-free limit was 11,693 euros.

All individuals residing in Austria are subject to income tax. Income refers to the total amount of earnings, reduced by special expenses, extraordinary burdens, and child-related deductions. The amount of tax is determined based on the income tax return.

2024 Tax Rates

Income Bracket (€)	Tax Rate (%)
0 – 12,816	0
12,816 – 20,818	20
20,818 – 34,513	30
34,513 – 66,612	40
66,612 – 99,266	48
99,266 – 1,000,000	50
Over 1,000,000	55

The tax rate is always applied to the difference between the current and previous bracket, making the income tax table progressive in nature.

Single-Earner Deduction

A single earner is someone who lives with a partner or spouse for more than six months and has at least one child for whom family allowance is received for more than six months. Taxpayers who do not meet the requirements for a single earner are not eligible for the AVAB (Alleinverdienerabsetzbetrag) deduction.

AVAB Amount per Child

Year	1 Child (€)	2 Children (€)	Per Additional Child (€)
2024	572	774	255
2023	520	704	232
2022	494	669	220

Work-Related Flat-Rate Deduction

Self-employed individuals working from home can deduct up to 1,200 euros annually for the costs of maintaining their workspace. This new provision allows freelancers working in a home office to benefit from tax deductions as well.

Understanding tax rules and deductions is essential for optimizing tax burdens. The Austrian tax system is continuously evolving, so it’s important to stay updated with the latest tax legislation.