Austria

Individual - Sample personal income tax calculation

Last reviewed - 27 January 2021

Assumptions:

Resident husband and wife
Two dependent children
Husband is sole earner:
- Employment in Austria (Austrian employer).
- Austrian social security.
- Employment income paid in 14 instalments.
Interest income from bank deposits (EUR 11,250)
Dividends from abroad (DTT country) (EUR 7,030 comparable to Austrian dividends)
Life insurance premiums of EUR 7,300 per year (contract was closed before 1 January 2016).

Tax computation	EUR	EUR
Salary		77,700.00
Less: Tax-favoured portion (13th and 14th salaries) ((77,000 / 14) x 2)	(11,100.00)
Less: Social security contributions	(12,067.92)
Less: Standard allowance: Business expenses	(132.00)
Less: Non-business expenses relief: Insurance premiums (max) *	(0.00)	23,299.92
Taxable income		54,400.08
Tax thereon		15,778.03
Less: Personal allowances: Family bonus plus	(3,000.00)
Less: Personal allowances: Sole earner	(669.00)
Less: Personal allowances: Transportation credit	(400.00)	(4,069.00)
Income tax		11,709.03
Income tax on 13th and 14th salaries ((77,000 / 14) x 2)	11,100.00
Social security contributions	(1,900.32)
For 13th and 14th salaries	(620.00)	8,579.68
Assessment basis (6% of 8,541.31)		514.78
Add: 25% special tax on interest and 27.5% on dividends		4,745.75
Income tax liability		16,969.56
Foreign tax credit for WHT on dividends (assume 10% of 7,030)		(703.00)
Total income tax payable		16,266.56

* Life Insurance premiums are not deductible anymore after the year 2020, even if the contract was closed prior to 2016.