Austria Tax Rates
Austria operates a progressive income tax system with rates ranging from 0% to 55%, featuring one of Europe's highest top marginal rates. The country levies a 23% corporate tax rate (reduced from 25% in 2024), a standard 20% VAT, and a 27.5% flat rate on capital income. Austria is known for its generous social benefits funded by substantial employer and employee social security contributions totaling approximately 40% of gross salary.
Top Income Tax Rate
55%
Corporate Tax Rate
23%
VAT / Sales Tax
20%
Capital Gains Tax
27.5%
Detailed Tax Information
Income Tax Brackets
Austria applies a progressive income tax (Einkommensteuer) with seven brackets ranging from 0% to 55%. The top rate of 55% applies to income exceeding €1 million. Austria reformed its brackets in 2023-2024 to combat bracket creep caused by inflation, with thresholds adjusted accordingly. Employees benefit from various tax credits including the employee tax credit (Verkehrsabsetzbetrag) of €421 and the sole earner/single parent credit.
| Income Range | Tax Rate |
|---|---|
| €0 – €13K | 0% |
| €13K – €21K | 20% |
| €21K – €35K | 30% |
| €35K – €67K | 40% |
| €67K – €99K | 48% |
| €99K – €1.0M | 50% |
| €1.0M+ | 55% |
Corporate Tax
Austria levies corporate income tax (Körperschaftsteuer) at a flat rate of 23%, reduced from 25% effective 2024. A minimum corporate tax of €1,750 per year applies to GmbHs (limited liability companies) and €3,500 for AGs (joint stock companies). The minimum tax is creditable against future tax liabilities. Austria applies the participation exemption for dividends and capital gains from qualifying international subsidiaries (minimum 10% holding for at least one year).
Standard Rate
23%
Capital Gains Tax
Capital gains from financial investments (shares, bonds, derivatives) are subject to a flat withholding tax (Kapitalertragsteuer - KESt) of 27.5%. Real estate capital gains are also taxed at a flat 30% (Immobilienertragsteuer). The 27.5% rate replaced the previous system of taxing gains only on shares acquired after 2011. Austrian banks withhold KESt automatically on domestic securities transactions.
Rate
27.5%
VAT / Sales Tax
Austria applies a standard VAT (Umsatzsteuer - USt) rate of 20%, with reduced rates of 13% and 10%. The 10% rate applies broadly to essential goods including food and accommodation. Austrian VAT follows EU directives. Small businesses with annual turnover up to €35,000 are exempt from charging VAT (Kleinunternehmerregelung).
Standard Rate
20%
Cryptocurrency Tax
Since March 2022, cryptocurrency gains in Austria are taxed at the flat 27.5% KESt rate, the same as other capital investments. This applies to both crypto-to-fiat and crypto-to-crypto transactions. Mining and staking rewards are also taxed at 27.5% when received. Austrian crypto exchanges must withhold KESt on behalf of customers. The reform brought crypto in line with stocks and other financial instruments.
Tax Treaties
Austria maintains approximately 90 double taxation treaties in force. Given its central European location, Austria has strong treaty relationships with neighboring countries and major global trading partners. Treaties generally follow the OECD Model Tax Convention. Austria participates in OECD BEPS initiatives and has signed the Multilateral Instrument (MLI).
Treaty Network
90
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Austria
See how much you could save by moving here from your current country.
$-28,346
Tax in United States
$24K
24.4% effective
Tax in Austria
$53K
52.7% effective
Additional Cost
116.4%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
