Austria Taxes in 2026: Everything You Need to Know on One Page

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You're eyeing Vienna, Graz or a flat in the Alps. You want to know what Austria will cost you in tax. This page gives you the whole system on one screen. Who is taxed, which taxes apply in 2026, and where the traps are.

Austria taxes in 2026: the key figures

Is this guide for you?

Read on if you…

• plan to move to Austria as a freelancer, founder or remote employee;
• already live in Austria and want to understand the big picture before you optimise anything;
• are leaving Austria and want to know which taxes follow you out.

Probably not your case if you…

• only visit Austria for short ski trips and keep no home there;
• need a detailed payroll calculation for a specific salary (use the official BMF tax calculator for that).

How does the Austrian tax system work?

Austria uses a residence-based, worldwide system. If you are resident, Austria taxes everything you earn, wherever it comes from. If you are not, it only taxes your Austrian-source income.

You become resident in one of two ways:

1. Abode (Wohnsitz) – a home in Austria that you keep and can use. A rented flat counts. Residence can start on day one.
2. Habitual abode (gewöhnlicher Aufenthalt) – basically, you live in Austria for more than six months, even without your own home.

Nationality plays no role. Double tax treaties decide where you are resident if two countries both claim you. They use a tie-breaker: the order of tests that settles a dual-residence conflict (permanent home, then centre of vital interests – basically where your life is: partner, kids, main business).

The tax year is the calendar year. You file your return through FinanzOnline, the tax authority's online portal. The regular deadline for an electronic return is 30 June of the following year, later if a tax adviser files for you.

What taxes will you pay in Austria?

The social security percentages above are approximate.

Income tax brackets for 2026

Austria indexes its brackets every year to offset inflation. For 2026, the thresholds are:

Employees get a bonus: the 13th and 14th salaries are mostly taxed at a flat 6%. That makes the effective rate lower than the bracket table suggests.

Capital income in one paragraph

Dividends, gains on shares, ETFs and derivatives are taxed at 27.5%. So are crypto gains, under a regime in force since 1 March 2022 for coins bought after 28 February 2021. Austrian banks deduct the tax automatically. With a foreign broker, you declare it yourself. Full details in our guide to capital gains tax in Austria.

Are there special tax regimes for newcomers in Austria?

Honestly? Not many. Austria has no flat-tax regime, no non-dom status and no digital nomad visa.

Two targeted reliefs exist:

• Expatriate deduction – for employees assigned to Austria by a foreign employer. They deduct 20% of gross salary, capped at EUR 10,000 a year, for up to five years.
• Relocation allowance (Zuzugsbegünstigung) – mainly for researchers and scientists whose move is in the public interest. It gives a 30% tax-free allowance on qualifying income for five years, on application.

Freelancers and founders usually don't qualify for either. Everyone gets the standard reliefs, such as the basic profit allowance for the self-employed. See tax incentives for expats and digital nomads in Austria for eligibility.

Moving to or leaving Austria: what triggers tax?

Moving in

You must register your address (Meldezettel) within three days of moving in. Registration is not the tax test itself, but it is strong evidence of an abode. Once you have a home available to you, Austria treats you as resident.

EU, EEA and Swiss citizens just register. Non-EU nationals need a residence title first, such as the Red-White-Red Card. The step-by-step version is in our practical guide to obtaining your tax residency in Austria.

Moving out

Here's the catch. Leaving Austria can trigger an exit tax (Wegzugsbesteuerung). Your shares, funds, new crypto and company shares are treated as sold. That happens on the day Austria loses its right to tax them. The unrealised gain is taxed at 27.5%.

• Moving to an EU or EEA country: you can apply to defer the tax until you actually sell. Business assets are paid in instalments instead. Since 1 July 2026, deferrals above EUR 100,000 come with a yearly proof obligation.
• Moving to a third country such as the UAE: the tax is generally due straight away.

Also, giving up your flat matters more than deregistering. Keep a flat, and you may stay resident. Our practical guide to ceasing your tax residency in Austria covers the 70-day secondary-home rule and the full exit checklist.

How are businesses taxed in Austria?

You have two broad routes.

1. Sole proprietor (Einzelunternehmen) – profit is taxed as your personal income at 0% to 55%. Simple, cheap, unlimited liability.
2. Company (GmbH or FlexCo) – profit is taxed at 23%. Dividends then suffer 27.5% KESt. Combined, that's 44.175% on distributed profit.

The minimum share capital of a GmbH dropped to EUR 10,000 in 2024. The same year Austria introduced the FlexCo (Flexible Kapitalgesellschaft), built for start-ups with employee shares. Compare all options in our guide to legal forms of business in Austria.

Deductions are strict. Business meals are only 50% deductible, and only with an advertising purpose. See business expenses in Austria for the rules.

VAT registration is required once turnover exceeds the small-business limit of EUR 55,000 a year.

Austria tax guides

Every Austria guide in one place:

• Practical guide to obtaining your tax residency in Austria – the abode and six-month tests, registration and the residence certificate.
• Practical guide to ceasing your tax residency in Austria – how to leave cleanly, the 70-day rule and the exit tax.
• Capital gains tax in Austria – 27.5% on shares, funds and crypto, 30% on property, and legal ways to pay less.
• Legal forms of business in Austria – sole proprietor, OG, KG, GmbH and FlexCo compared.
• Business expenses in Austria – what you can deduct, from meals to cars.
• Tax incentives for expats and digital nomads in Austria – the expatriate deduction and the relocation allowance.
• Tax fraud regulations of Austria – penalties, voluntary disclosure and what counts as evasion.

Common mistakes (and what they cost)

• Thinking six months is the only test → a flat in Austria makes you resident from day one. Your worldwide income is then taxable there.
• Leaving without checking the exit tax → a move outside the EU/EEA with a big portfolio can trigger 27.5% on gains you never cashed.
• Forgetting to declare foreign broker income → you face back taxes, interest and possible penalties under the tax fraud rules.
• Opening a GmbH too early → below EUR 60,000–80,000 profit, extra accounting and minimum tax usually cost more than they save.
• Treating business dinners as fully deductible → only meals with an advertising purpose qualify, and only at 50%.

Frequently asked questions

What is the income tax rate in Austria in 2026?

Austria uses seven brackets from 0% to 55%. The first EUR 13,539 of taxable income is tax-free in 2026. Rates then rise through 20%, 30%, 40% and 48% to 50% above EUR 104,859. The 55% top rate only applies above EUR 1 million. Employees also benefit from a 6% rate on most of their 13th and 14th salaries.

Does Austria tax worldwide income?

Yes, if you are resident. You become resident with an abode available to you in Austria or with a stay of more than six months. Non-residents are only taxed on Austrian-source income, such as work physically done in Austria or Austrian rental income. Double tax treaties prevent the same income from being taxed twice.

Is there a wealth or inheritance tax in Austria?

No. Austria abolished inheritance and gift tax in 2008 and has no annual wealth tax. Large gifts must still be reported to the tax office within set limits. Buying property triggers a 3.5% real estate transfer tax, and gains on property sales are taxed at 30%.

How much tax does a company pay in Austria?

A GmbH or FlexCo pays 23% corporate income tax on its profit. When profits are paid out as dividends, the shareholder pays 27.5% KESt on top. The combined burden on distributed profit is about 44.2%. Profits kept inside the company only bear the 23% until they are distributed.

Does Austria have a digital nomad visa?

No. EU, EEA and Swiss citizens can move freely and simply register their address. Non-EU nationals need an ordinary residence title, such as the Red-White-Red Card for skilled workers or self-employed key workers. Living in Austria with a home or for more than six months makes you tax resident.

Is crypto taxed in Austria?

Yes. Since 1 March 2022, gains on crypto bought after 28 February 2021 are taxed at the special 27.5% rate, like shares. Swapping one coin for another is tax-neutral. Coins bought before 1 March 2021 stay under the old rule and are tax-free if held for more than one year.

Related guides

• How to become tax resident in Austria
• How to leave Austria and handle the exit tax
• Capital gains tax in Austria: shares, crypto and property
• Choosing a business structure in Austria
• Moving to Switzerland instead? Tax residency rules
• Comparing with Germany: obtaining tax residency
• All country tax guides

Sources

• Federal Ministry of Finance (BMF) – taxes and tax calculator
• Income Tax Act 1988 (EStG) – consolidated text, RIS
• Business Service Portal (USP) – taxes and company formation
• oesterreich.gv.at – registration of residence and official procedures
• Migration portal – residence titles for Austria
• SVS – social insurance for the self-employed

This guide is general information, not personalised tax advice. See how we research and review.