Damon Mcknight
If you live and work in Austria, you are liable to pay income tax and file a return. The Austrian government levies tax on residents' salaries, wages, and other forms of remuneration, differentiating between income and wage tax. Salaried employees and pensioners pay wage tax, while self-employed workers pay income tax. The tax brackets are the same but differ in the collection method. The tax office will assess your completed income tax return to determine whether you owe money or are due a refund. You can file your tax return on paper or electronically via the public FinanzOnline platform.
| Characteristics | Values |
|---|---|
| Who has to file taxes? | Residents with an income, non-residents with income subject to Austrian taxation, and those with unrestricted tax liability. |
| Who is exempt from filing taxes? | Those earning less than €13,308 per year, students with stipends for writing a master's or PhD thesis that do not exceed the Austrian Study Grant, and students whose earnings from internships/part-time jobs are below the tax threshold. |
| Tax rates | 0% to 55% on income above €13,308. The first €620 is tax-exempt. |
| Types of earnings liable for taxation | Business or profit income, and non-business income or receipts over expenditure income. |
| Income tax return filing deadline | 30 April (paper return), 30 June (electronically) |
| Income tax return filing process | Returns can be filed with the local tax office, on paper or electronically. |
| Tax deductions | Transportation costs, work clothes, professional development materials, smartphone bills, job-hunting expenses, and home office standard deduction. |
| Tax refunds | Possible if the employer deducted a higher amount of tax from the paycheck than they should have. |
| Tax assessment | The tax office checks the information provided and issues a tax assessment note within six months of filing. |
| Online tax filing platforms | FinanzOnline, Steuer-App |
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What You'll Learn
Income tax returns: who needs to file them?
If you live and work in Austria, you are likely liable to pay income tax and file a return. Austria levies tax on all income above a €13,308 threshold from residents and non-residents living and working in the country. The tax year in Austria lasts from 1 January to 31 December.
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. 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 wage tax from your monthly salary.
If you are legally obliged to complete an income tax return in Austria, you need to use the following forms: 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. 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.
You can file your tax return (also called the ANV or "Arbeitnehmerveranlagung") for the year of 2023 by 30 April 2024, or by 30 June 2024 if you file your tax return online. You can submit your tax declaration easily via the official platform FinanzOnline or the mobile "Steuer-App". There are two ways to file your ANV. The first is a fully automated process, meaning you don’t need to fill in any forms. You can simply wait for your tax refund to show up in your account balance — provided you did pay too much in income taxes. However, if you’ve filed tax-deductible expenses such as income-related expenses for previous years, you’ll have to do your annual tax assessment manually.
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Income tax: what's taxable?
Austria levies tax on all income above an annual threshold of €13,308 from residents and non-residents living and working in the country. The Austrian government differentiates between income and wage tax. Salaried employees and pensioners pay wage tax (Lohnsteuer), while self-employed workers pay income tax (Einkommensteuer). The tax brackets are the same but differ in the collection method.
Residents
If you are a resident of Austria, you are taxed on your worldwide income. This includes income earned both inside and outside of Austria. This includes income from trade or business, profession, employment, investments, and property. 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.
Non-residents
Non-residents are taxed only on their Austrian-sourced income. This typically includes income from activities or assets located in Austria. Non-residents are subject to income tax on Austrian-source income at normal rates (including a fictitious income increase of 10,888 euros).
Taxable income
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 receipts over expenditure income. The tax rate varies depending on the total amount of income earned by the individual, including the amount of profit sharing.
Deductions
Various expenses can be offset against income tax, and lump sums, allowances, and special expenses are tax-deductible. For example, transportation costs, work clothes, professional-development materials, smartphone bills, and home office expenses.
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Income tax: how to file
If you live and work in Austria, you are liable to pay income tax and file a return. Austria levies tax on all income above €13,308 from residents and non-residents. The government differentiates between income and wage tax. Salaried employees and pensioners pay wage tax, while self-employed workers pay income tax.
The Austrian Income Tax Act stipulates seven types of earnings that are liable for taxation, split into two groups: business or profit income, and non-business or receipts over expenditure income. Income tax rates range from 0% to 55% of taxable income, increasing as earnings increase. The first €620 of 13th and 14th-month salaries are tax-exempt, with tax withheld at a graduated rate of 6% to 55% on the remainder.
If you are a salaried employee, 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). If you have only one source of employed income, you likely do not need to file a tax return, as your employer will deduct wage tax from your monthly salary. However, you can voluntarily file a return to determine if you are due a refund.
If you are self-employed or have multiple sources of income, you need to file an income tax return at the end of the tax year. The deadlines for submitting your income tax return depend on how you file it. Paper returns are due by April 30, while electronic returns via the public FinanzOnline platform are due by the end of June. You can sign up, request a tax number, file your return, and pay any taxes due through FinanzOnline.
You can also apply for a tax refund at the end of each tax year, with the option to file tax returns for up to five years back. You are entitled to a refund if your employer deducted too much tax from your paycheck. Various work-related expenses can be deducted from your taxes, including transportation costs, work clothes, professional development materials, smartphone bills, and home office expenses.
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Tax deductions: what can I claim?
If you are a resident of Austria and receive an income, you will likely need to file an income tax return at the end of the tax year. You can do this by 30 April of the following year (if filing a paper return) or by the end of June (if filing electronically).
When filing your tax return, there are several deductions you can claim. Here are some of the most common ones:
- Work-related expenses: Employees can claim a range of work-related expenses, including transportation costs, work clothes, professional development materials, smartphone bills, and internet bills.
- Home office deduction: If you work from home, you can claim a deduction of up to €300 from your income taxes.
- Commuting allowance: You can claim a deduction for commuting expenses between your residence and place of work. The deductible amount depends on the distance travelled and the possibility of using public transport.
- Family and childcare allowance: Austria offers financial support for families, including a family bonus plus, which is a tax credit of up to €2,000 per child under 18 living in Austria.
- Church tax: You can deduct church tax up to EUR 600.
- Charitable contributions: You can deduct charitable donations to certain institutions up to 10% of your taxable income.
- Tax adviser fees: Austrian tax adviser fees are fully deductible.
- Extraordinary expenses: Resident individuals who incur unavoidable expenses, such as funeral costs or medical expenses not reimbursed by health insurance, may be eligible for tax relief.
- Expatriate allowance: If you are an expatriate, you can claim a lump sum for income-related expenses amounting to 20% of your gross salary, up to €10,000 per year.
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Tax refunds: how to get your money back
If you live and work in Austria, you are liable to pay income tax and file a return if your income is above the €13,308 threshold. The Austrian government differentiates between income and wage tax. Salaried employees and pensioners pay wage tax, while self-employed workers pay income tax. If you are employed in Austria, you are likely eligible to claim a tax refund.
How to get your tax refund
You can file your tax return (also called the ANV or "Arbeitnehmerveranlagung") by 30 April if submitting a paper return, or by 30 June if filing electronically via the public FinanzOnline platform or the mobile "Steuer-App". 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.
There are two ways to file your ANV. The first is a fully automated process, meaning you don't need to fill in any forms. You can simply wait for your tax refund to show up in your account balance, provided you paid too much in income taxes. However, if you've filed tax-deductible expenses, such as income-related expenses for previous years, you'll have to do your annual tax assessment manually. You can still do this manually via FinanzOnline, even if it's your first time.
- Transportation costs, e.g. car costs
- Cashier’s allowance
- Work clothes
- Professional-development materials
- Smartphone bill
- Commuting
- Having children
- New laptop or monthly internet bills (up to €300)
You can file retroactively for up to five years. For example, in 2024, you can file your tax returns for 2019 up to 2023.
VAT Refunds
Upon application, travellers not domiciled in the EU will be refunded the VAT by the seller for goods bought in Austria. The invoiced amount (including VAT) must exceed €75, and the goods must be exported with your personal luggage from the EU before the end of the third calendar month following the month in which the purchase was made. You can get your refund prior to export validation in cash or on your credit card.
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Frequently asked questions
Anyone who lives and works in Austria and earns above a certain threshold is liable to pay income tax and file a return. This includes residents and non-residents.
Austria levies tax on all income above €13,308 from residents and non-residents. Income up to €11,000 is exempt from taxation.
The tax rate is determined based on gross income and ranges from 0% to 55%.
Tax returns must be filed by 30 April of the following year if done via paper form or by the end of June if done electronically.
You can file taxes in Austria by submitting a paper return or filing electronically via the public FinanzOnline platform.
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