Austria

Individual - Sample personal income tax calculation

Last reviewed - 30 June 2020

Typical 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.