How to file your income tax return in Austria in 2024

Austria levies tax on all income above the €12,465 threshold from residents and non-residents living and working in the country. The government divides earnings into brackets and calculates the tax rates progressively from 0 to 55%.

You can learn more about how to file your income tax return in Austria by exploring the following topics:

Income tax in Austria: overview and latest developments

The Austrian government levies tax on residents’ salaries, wages, or any other forms of remuneration, differentiating between income and wage tax. Salaried employees and pensioners pay wage tax (Lohnsteuer), while for self-employed workers, it is income tax (Einkommensteuer). The tax brackets are the same but differ in the collection method.

If you earn a salary or wage, your employer will withhold a certain tax percentage from your monthly income based on the tax brackets and pay the Austrian tax authority, Bundesministerium für Finanzen (BMF – Ministry of Finance). Whether you pay income or wage tax, you will most likely have to file a return at the end of the tax year. The BMF will assess your completed income tax return to determine whether you owe money or receive a refund.

The Austrian Income Tax Act (Einkommensteuergesetz) stipulates seven types of earnings that are liable for taxation and splits these into two groups: business or profit income and non-business or from receipts over expenditure income.

• Business income
  • Self-employment
  • Agriculture and forestry
  • Commercial operation
• Non-business income
  • Employment
  • Capital assets
  • Rentals and leasing
  • Other income not specified (e.g., savings, interests, and dividends)

Austria’s income tax system is progressive, meaning that the rate of taxation (up to 55% of taxable income) increases the more you earn.

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The tax system in Austria

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The Austrian state uses tax revenue to subsidize various public services and infrastructures to ensure high standards of living for its residents, for example:

• Public services: Healthcare and education
• Infrastructure: Roads, public transport, energy and water supply, and digital connectivity
• Social services and benefits: Child and family benefits, unemployment insurance, housing assistance, disability support, and pensions
• Public safety: Police and fire services, and courts
• Environmental protection: Conservation of natural resources and green spaces

Latest news about income taxes in Austria in 2024

The most significant announcement impacting income tax in Austria is the Inflation Adjustment Ordinance 2024 (in German). It indicates amendments to the individual income tax brackets for the 2024 tax year.

Tax rates: how much tax will I pay in Austria in 2024?

You can easily determine your income tax by using the Austrian Tax iCalculator.

Indeed, there is no difference between the tax rates and income thresholds for residents and non-residents in Austria.

As a freelancer (Neue Selbständige), typically, you can expect to pay a tax rate of about 25%. This applies if your income surpasses the tax-free threshold of €12,465. If your earnings exceed €30,000, you must also pay value-added tax (VAT).

2024 Tax year (1 January 2023 – 31 December 2023)

Income tax rates in Austria are calculated according to your earnings after deductions and fall in the following brackets:

Typically, the government adjusts the tax thresholds and rates to account for inflation and provide tax relief, as seen in the 2023 tax year changes.

2023 Tax year (1 January 2022 – 31 December 2022)

These 2023 tax rates have also changed from the 2022 tax year.

2022 Tax year (1 January 2021 – 31 December 2021)

Who pays income tax in Austria?

Who needs to file an income tax return?

The government distinguishes between limited and unlimited tax liability. You have unlimited tax liability if Austria is your primary country of residence and you receive an income:

• As a resident
• As a cross-border employee
• From a foreign employer who is not obligated to deduct wage tax in Austria
• From a foreign diplomatic mission or an international organization
• From a foreign pension

To clarify, as a resident, if you are self-employed or receive income from multiple sources, you need to file an income tax return at the end of the tax year. However, if you only receive one employed income, you likely do not need to file a tax return, as your employer will deduct a wage tax from your monthly salary.

You must also file an income tax return if you have limited tax liability and receive foreign income from an entity that does not deduct tax (double taxation agreement), while Austria can levy wage tax.

Of course, you can voluntarily file an income tax return (i.e., employee tax assessment) to determine whether you are due a refund from withholding or wage taxes. For example, taxpayers who have limited tax liability and have earned an income in Austria:

• From an employer who has deducted wage tax
• From a domestic pension
• As a writer, lecturer, artist, architect, athlete, or performer in an entertainment show, where an amount of 20% or 25% withholding tax was deducted

Austrian income tax for foreigners

Non-residents are only subject to income tax on Austrian-source remuneration at the national tax rates for the assessment year. In contrast, residents must report and pay taxes on all their earnings, no matter where they earn income.

Double-taxation agreements

Some internationals may benefit from the double taxation agreements or conventions (Doppelbesteuerungsabkommen) between Austria and other countries across the EU and worldwide. These agreements mean you will not pay Austrian income tax on any already taxed remuneration in your home country. However, if your situation determines that Austria can levy tax on your income, you must indicate this on forms L1i and L17.

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EU and EEA citizens from countries with a double-taxation agreement with Austria can choose unlimited tax liability if they earn most of their income (90% or more) in Austria or if their foreign income is below €12,465, despite not residing in the country. This means their Austrian income is taxed, excluding the first €9,567 for tax purposes. They can also claim certain tax deductions like Family Bonus Plus.

Moreover, cross-border workers living in Austria but working in Germany, Italy, or Liechtenstein are typically taxed in Austria. Foreign employees are considered fully tax-liable from arrival, provided they have a work or employment contract lasting at least six months. However, seasonal workers only need to pay income tax if their stay exceeds half a year.

You can find the most up-to-date list of double taxation treaty partners on the Austrian Ministry of Finance website.

Who is exempt from Austrian income tax?

Some individuals living in Austria may be exempt from paying income tax or filing a return. These include:

• If you earn less than the annual tax threshold of €12,465
• If your student stipends for writing a master’s or PhD thesis do not exceed the Austrian Study Grant or earnings from internships/part-time jobs are below the tax threshold
• Some pensions may be tax-free depending on the source and amount
• Foreign diplomats and international organization employees
• Certain tax-free savings accounts and investment income
• Non-residents whose Austrian income is below the tax threshold

How do I file my income tax return in Austria?

The deadlines for submitting your income tax in Austria depend on how you file it. If you submit a paper return, it must be in by 30 April 2024.

However, if you file electronically via the public FinanzOnline platform, you have until 30 June 2024.

How to register for tax in Austria

You can digitally sign up, request a tax number, file your income tax return, and pay the amount due via FinanzOnline, the government’s tax office portal.

Alternatively, you can register for a tax number and submit your return in person at your local tax office. Of course, you need to book an appointment in advance, which you can do by calling 050 233 700 or using the online booking form.

Which forms do I need to fill out?

If you are legally obliged to complete an income tax return in Austria, you need to use the following forms:

• E1: Personal income tax
• E1a: Business income and expenditure (if self-employed)

These forms are all in German and include the following sections:

• Personal and contact details (including biometrics and marital status)
• Details about tax credits, exemptions, and deductions
• Childcare allowance, benefits, and pension contributions
• Detailed description of all sources of income – local and international
• Investments, savings, capital gains, and losses
• Travel allowance
• Business expenses (primarily if self-employed)
• Extraordinary burdens

If your income is fully taxable in Austria (e.g., monthly wage tax on a salary), your employer must forward the Wage Certificate (Form L 17) to the BMF. It can be done via ELDA, Austria’s system for electronic data exchange with social security institutions.

Supplementary forms

Depending on the source of taxable earnings you declare, you may also need to attach these forms with extra information. These supplementary tax forms are only available in German, but you can find them online via the BMF’s digital portal.

Deductibles and tax relief

You can claim certain deductions against your taxable income in Austria, including:

• Sickness, life, and accident insurance premiums
• Extraordinary burdens (e.g., illness or disaster costs not covered by insurance)
• Voluntary employer pension contributions
• Building a new house or renovating an existing space expenses
• Family Bonus Plus tax credit that combines the childcare deduction and the child tax-free amounts
• Single earner/parent’s tax credit
• Professional expenses
• Education costs for retraining or career development
• Hospital charges (not covered by health insurance)
• Charitable contributions to certain institutions
• Church tax
• Austrian tax adviser fees
• A tax break for cars with a CO2 value of up to 95g/km and purely electric vehicles (EVs)
• Travel or commuter allowance

As a low-income earner, you may also be eligible to claim ‘negative tax’ or refunds on your social security contributions.

Self-employed income tax allowances in Austria

If you are self-employed, you can offset several business-related expenses from your income tax in Austria, for example:

• Transportation/travel
• Administration costs and office supplies
• Communications
• Career development expenses
• Professional body memberships
• Liability insurance
• Home office

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After logging in to your FinanzOnline account, you select Eingaben (tax entries) and Erklärungen (tax declarations).

How do I pay my Austrian income tax?

Most taxpayers also use the FinanzOnline platform to pay their income tax electronically.

However, if you can’t access it, you can also use these payment methods:

• Direct bank transfer
• Debit orders
• At a bank with a deposit/payment slip

Remember to include your tax identification number and specific payment codes to ensure the BMF allocates the money to your tax account.

Income tax refunds

If the tax assessment (Bescheid) reveals that you have overpaid and are due a refund, the BMF will typically credit your registered bank account within a few weeks.

However, if you think the tax calculation needs to be corrected and are due a refund but have yet to receive one, you can contact the tax office to discuss the issue. If this is not resolved, you can submit an official appeal.

What happens if I don’t pay my income tax on time?

Filing your taxes on time is essential to avoid penalties. In Austria, if you submit your tax return late without a justifiable reason, a surcharge of up to 10% of the prescribed tax amount can be applied.

Making negligent errors on your income tax return in Austria could lead to an audit, which might result in adjustments to your tax liability. The specifics, such as fines or additional taxes due, depend on the nature and extent of the mistakes.

If you cannot fully settle the amount due, you can request deferred payment or instalments. The BMF will charge interest rates of 3.88% on debt exceeding €750.

Appeal a tax assessment decision

You can appeal (Berufung) a tax office decision in writing within 30 days of the assessment. It is easiest to file the appeal digitally via the FinanzOnline portal. You must also request a collection suspension if you plan to avoid paying the amount before resolving the dispute.

If your appeal is denied, you will pay 5.88% interest for the time of suspension.

Income tax advice in Austria

Filing your income tax return in Austria can be complicated, especially if you are self-employed, have multiple income sources, or want to claim exemptions, tax credits, or deductions.

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Tax advisors in Austria

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Therefore, it is a good idea to seek professional tax advice. You can start by browsing our directory to find financial experts in Austria or search for an accountant on the Austrian Chamber of Tax Advisors and Public Accountants.

Ensure that the tax advisor you choose belongs to a professional body, such as:

• Austrian Chamber of Tax Advisors and Public Accountants (Kammer der Steuerberater und Wirtschaftsprüfer – KSW)
• Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP)

Useful resources

• Tax Book 2024 – official tax guide from das Bundesministerium für Finanzen (Austria’s Ministry of Finance)
• Budget 2024 – official national budgetary forecast for 2024 to 2027
• FinanzOnline – digitally file your income tax return
• The Austrian Tax Treaty Network – official information on the double tax conventions between Austria and other countries
• Business service portal – official information about filing an income tax return in Austria
• Bundesministerium Finanzen – find copies of all the digital tax forms on the Ministry of Finance’s search portal
• PWC – 2024 income tax rates and withholding tax examples