Income tax (rates / brackets)

Austria's income tax system applies progressive tax rates to resident individuals and corporations. For individuals, the 2024 tax year maintains brackets ranging from 0% on income below EUR 11,600 to 55% on income exceeding EUR 1,000,000, with intermediate rates at 20%, 30%, 42%, and 48% across specified thresholds. Corporate income tax is levied at a flat rate of 24% on profits for limited liability companies (GmbHs) and other corporate entities.

The Austrian income tax framework is governed by the Income Tax Act (Einkommensteuergesetz, EStG) and the Corporate Income Tax Act (Körperschaftsteuergesetz, KStG), administered by the Federal Ministry of Finance and regional tax authorities.

Effective January 1, 2024, Austria reduced the minimum corporate income tax for GmbHs from EUR 1,000 to EUR 500 annually. Simultaneously, Austria implemented the OECD Pillar Two global minimum tax rules, establishing a 15% minimum tax on large multinational enterprises with annual revenues exceeding EUR 750 million. This aligns Austria with international tax standards and affects corporate tax planning for eligible groups.

Beginning January 1, 2026, Austria raises the low-taxation threshold to 15% and introduces a new motor vehicle registration tax reimbursement option, creating additional tax relief mechanisms for qualifying businesses and individuals.

Employers and payroll teams must ensure accurate withholding of income tax according to current brackets, maintain compliance with corporate tax obligations including the EUR 500 minimum, and monitor Pillar Two requirements for multinational operations. Annual tax filings must reflect all applicable rates and thresholds for the relevant assessment year.