Austria

Individual - Other tax credits and incentives

Last reviewed - 30 June 2020

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 400
   
Sole wage earners, single taxpayers, and sole earners of unmarried couples (1)  
With one child 494
With two children 669
For each additional child add 220
   
Income limit for spouse (sole earners): 6,000 per annum
   
Child alimony tax credit:  
For the first dependent child per month 29.20
For the second dependent child per month 43.80
For each additional dependent child per month 58.40
   
Retiree (2) up to 764

Notes

  1. If children live in other EU countries, the amount is subject to indexation.
  2. The retiree tax credit amounts between EUR 400 and EUR 764 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 19,930 per year
    • the income of the spouse does not exceed EUR 2,200 per year, and
    • the taxpayer is not eligible for the sole earner credit.

    If the conditions mentioned above are not fulfilled, the retiree tax credit amount is EUR 400.

    The retiree allowance is reduced on a pro-rata basis for annual income between EUR 19,930 and EUR 25,000. For income exceeding the limit of EUR 25,000 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 as of 1 January 2018:

  • For children below the age of three: EUR 114 per month.
  • For children between the ages of three and ten: EUR 121.90 per month.
  • For children between the ages of ten and 18: EUR 141.50 per month.
  • For orphans and children between the ages of 19 and 23 (24 in some cases) who are in school: EUR 165.10 per month.

Monthly increase: The total family allowance is increased by:

  • EUR 7.10 per month if the family allowance is paid for at least two children
  • EUR 17.40 per month for at least three children
  • EUR 26.50 per month for at least four children
  • EUR 32.00 per month for at least five children
  • EUR 35.70 per month for at least six children, and
  • EUR 52.00 per month for each additional child.

However, the allowance is subject to indexation if children live in other EU countries.

A 13th instalment of family allowance of EUR 100 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 six 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 58.40 for each child.

Furthermore, a child care allowance (Kinderbetreuungsgeld) is granted for new-born children. An amount between EUR 14.53 and EUR 66 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 16,450 per year, the income limit is EUR 6,800 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 20 per month for the third and each additional dependent child. This allowance has to be applied by filing a tax return.