Austria

Individual - Other tax credits and incentives

Last reviewed - 12 September 2022

Generally, personal allowances take the form of tax credits, i.e. deductions from tax payable. By contrast, family allowances are paid to the taxpayer in cash.

Personal allowances

Personal allowances are available as follows:

Allowance Tax credit (EUR)
Transportation tax credit 421
   
Sole wage earners, single taxpayers, and sole earners of unmarried couples  
With one child 520
With two children 704
For each additional child add 232
   
Income limit for spouse (sole earners): 6,312 per annum
   
Child alimony tax credit:  
For the first dependent child per month 31.00
For the second dependent child per month 47.00
For each additional dependent child per month 62.00
   
Retiree (1) up to 1,278

Notes

  1. The increased retiree tax credit amounts up to EUR 1,278 if:
    • the taxpayer is married for more than six months in the calendar year or the registered partner does not live permanently separate
    • the pension income of the taxpayer does not exceed EUR 20,967 per year
    • the income of the spouse does not exceed EUR 2,315 per year, and
    • the taxpayer is not eligible for the sole earner credit.

    The retiree allowance is reduced on a pro-rata basis for annual income between EUR 20,967 and EUR 26,826. For income exceeding the limit of EUR 26,826 per annum, no credit is available.

  2. Will the conditions for the increased retiree tax credit not fulfilled, then the normal retiree tax credit amounts to EUR 868. The retiree allowance is reduced on a pro-rata basis for annual income between EUR 18,410 and EUR 26,826. For income exceeding the limit of EUR 26,826 per annum, no credit is available.

Family allowance

A monthly tax-free cash payment for children up to age 18, or up to 24 if still in school, or handicapped (up to age 25 under certain conditions), is granted by the government upon formal request. Family allowance (Familienbeihilfe) in Austria is only granted if no foreign entitlement to child benefit is given.

For children living in Austria, the allowances are as follows:

  • For children below the age of three: EUR 120.60 per month.
  • For children between the ages of three and ten: EUR 129.00 per month.
  • For children between the ages of ten and 18: EUR 149.70 per month.
  • For orphans and children between the ages of 19 and 24 (25 in some cases) who are in school: EUR 174.70 per month.

Monthly increase: The total family allowance is increased for each child by:

  • EUR 7.50 per month if the family allowance is paid for at least two children
  • EUR 18.40 per month for at least three children
  • EUR 28.00 per month for at least four children
  • EUR 33.90 per month for at least five children
  • EUR 37.80 per month for at least six children, and
  • EUR 55.00 per month for each additional child.

A 13th instalment of family allowance of EUR 105.80 per child will be paid by the tax office in the month of September in each calendar year for each child between the ages of 6 and 15.

These allowances are granted even in cases where no income tax is payable.

Family allowance is paid by the tax office in cash along with the monthly child allowance of EUR 61.80 for each child.

Furthermore, a child care allowance (Kinderbetreuungsgeld) is granted for new-born children. An amount between EUR 14.53 and EUR 69.83 per day is paid for children who have passed the mother-child check up and depends on the length of maternity leave taken by the individual. If the mother-child check up examination is not taken, the child pay will be reduced.

One can choose between flat-rate and income-related child care allowances, whereas the income limit with a flat-rate option is EUR 18,000 per year, the income limit is EUR 7,800 per year if one chooses the income-related option.

An additional allowance for three or more children is granted (Mehrkindzuschlag), but only when the family allowance for children has been obtained and the household income for the previous calendar year does not exceed EUR 55,000. The additional allowance amounts to EUR 21.20 per month for the third and each additional dependent child. This allowance has to be applied by filing a tax return.