Austria

Individual - Sample personal income tax calculation

Last reviewed - 27 January 2021

Typical tax computation for 2021, based on the projected law and tax rates in effect as of 1 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.