Austria

All individuals resident in Austria are subject to Austrian income tax on their worldwide income, including income from trade or business, profession, employment, investments, and property. Non-residents are taxed on income from certain sources in Austria only. Non-residents are subject to income tax on Austrian-source income at normal rates (including a fictitious income increase of 10,199 euros [EUR]).

Personal income tax rates

Payroll withholding tax (WHT) examples

Assuming Austrian social security applies, wage tax and social security contributions on current salary are withheld as follows:

• Individuals for whom employment income subject to wage tax is the only source of income are not obligated to file income tax returns. However, such individuals may obtain a partial refund of taxes by filing an income tax return where they have incurred deductible business or special expenses or did not have a constant salary for 12 months.
• A sole earner credit can be applied as follows: If a married couple with a single income has one child and is entitled to the family allowance for more than six months, the monthly tax amount withheld is reduced by EUR 46.25, with two children it is reduced by EUR 62.58, and with three children by EUR 83.25. For married couples without children, the sole earner credit is not applicable.
• Tax rates applicable to monthly salaries are based on the above-listed income tax rates.
• The 13th- and 14th-month salaries (‘special payments’) are subject to social security deductions (see Social security contributions in the Other taxes section for more information). The first EUR 620 is tax exempt; from the remaining amount, tax is withheld at a graduated rate between 6% and 55% (see Employment income in the Income determination section for more information).

Local income taxes

No local income taxes are payable in Austria.