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Austria
Individual - Sample personal income tax calculation
Last reviewed - 30 June 2020Typical tax computation for 2020, based on the projected law and tax rates in effect as of 1 January 2020
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 | 77,000.00 | |
| Less: Tax-favoured portion (13th and 14th salaries) ((77,000 / 14) x 2) | (11,000.00) | |
| Less: Social security contributions | (11,676.53) | |
| Less: Standard allowance: Business expenses | (132.00) | |
| Less: Non-business expenses relief: Insurance premiums (max) * | (60.00) | (22,868.53) |
| Taxable income | 54,131.47 | |
| Tax thereon | 16,015.22 | |
| Less: Personal allowances: Sole earner | (669.00) | |
| Less: Personal allowances: Transportation credit | (400.00) | (1,069.00) |
| Income tax | 14,946.22 | |
| Income tax on 13th and 14th salaries ((77,000 / 14) x 2) | 11,000.00 | |
| Social security contributions | (1,838.69) | |
| For 13th and 14th salaries | (620.00) | 8,541.31 |
| Assessment basis (6% of 8,541.31) | 512.48 | |
| Add: 25% special tax on interest and 27.5% on dividends | 4,745.75 | |
| Income tax liability | 20,204.45 | |
| Foreign tax credit for WHT on dividends (assume 10% of 7,030) | (703.00) | |
| Total income tax payable | 19,501.45 |
* Maximum deduction of EUR 60 as the salary earned exceeds EUR 60,000.
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