Austria Tax Rates 2026: Personal Income Tax, Corporate Tax, VAT and Withholding

Official Austrian tax law and 2026 guidance

Austria's personal income tax is governed principally by the Einkommensteuergesetz (EStG), while corporations are subject to the Körperschaftsteuergesetz (KStG). VAT is governed by the Umsatzsteuergesetz (UStG). The Federal Ministry of Finance and the official Business Service Portal publish current rates, filing requirements and administrative guidance.

Austria personal income tax rates - 2026

For 2026, Austria applies the following progressive annual income-tax bands. Only the portion of income falling within each band is taxed at the corresponding marginal rate.

The 55% rate on income above €1 million is currently scheduled to apply through 2029. From 2023 onward, most tariff thresholds are adjusted annually to mitigate bracket creep. Tax credits and allowances can reduce the final tax burden.

Employees and self-employed taxpayers

Employment income is generally subject to payroll withholding (Lohnsteuer). The tax-free effective income level for employees can be higher than the basic €13,539 tariff threshold because employee tax credits are taken into account. The official Business Service Portal states an approximate tax-free annual level of €19,962.03 for employees in 2026, excluding special payments such as the 13th and 14th salary, while the basic tax-free amount for self-employed persons is €13,539.

Austria corporate income tax rate - 2026

Austrian legal entities such as a GmbH or AG are generally subject to corporation tax at a flat rate of 23% of taxable income. The rate was 24% in 2023 and has been 23% from 2024 onward.

Where after-tax corporate profits are distributed to individual shareholders, Austrian dividends are generally subject to 27.5% capital gains/investment income taxation. Depending on the shareholder and structure, participation exemptions and other corporate rules may apply.

Capital income, dividends and withholding tax

Austria generally taxes investment income through Kapitalertragsteuer (KESt). Interest from savings books and current accounts is generally subject to a special rate of 25%. Most other capital income, including dividends, gains on shares and many securities and derivatives, is generally subject to a special rate of 27.5%.

Where an Austrian paying or custodial institution is required to deduct KESt, that withholding often constitutes final taxation for an individual. Foreign-source investment income that is not subject to Austrian withholding may instead have to be included in the income-tax return.

Real-property capital gains tax

Private gains from the sale of Austrian real property are generally subject to the special real-estate income-tax rate (Immobilienertragsteuer) of 30%. Important exemptions include, subject to statutory conditions, the principal-residence exemption and the exemption for certain self-constructed buildings. Corporations are generally taxed on real-property gains at the ordinary 23% corporation-tax rate.

Austria VAT rates - Umsatzsteuer 2026

The general Austrian VAT rate is 20%. Reduced rates apply to specified goods and services. Current official guidance identifies reduced rates of 4.9%, 10% and 13% for qualifying transactions, while exemptions apply to certain activities under the VAT Act.

Reduced rates are exceptions and should be applied only where the transaction falls within the categories listed in § 10 UStG or another applicable provision.

Austria tax return filing deadlines

Annual income-tax, corporation-tax and VAT returns are generally due by 30 April of the following year when filed on paper and by 30 June of the following year when filed electronically through FinanzOnline. An extension may be granted on a reasoned application, and longer filing periods can apply under the professional tax-adviser quota system.

Income-tax and corporation-tax advance payments are generally due on 15 February, 15 May, 15 August and 15 November. VAT is generally due on the 15th day of the second following month, while payroll withholding taxes are normally due by the 15th day of the following month.

Residents and non-residents

Austria generally distinguishes between unlimited tax liability for persons resident or ordinarily resident in Austria and limited tax liability for persons without Austrian residence who receive specified Austrian-source income. Double-tax treaties may modify taxing rights and provide relief from double taxation.

Historical Austria income tax rates - 2014 and 2015

The following table is retained solely as historical information from the earlier article and must not be used for 2026 tax calculations.

The historical article also stated a 25% corporate rate and 25% capital-gains rates. Those figures have been superseded: Austria's general corporation-tax rate is now 23%, most capital income is generally taxed at 27.5%, and private real-property gains are generally taxed at 30%.