For 2026, Austrian residents are taxed on worldwide income if they are tax resident in Austria. In practice, residence is generally triggered by having a domicile or habitual abode there; newcomers who move and establish a home in Austria should expect to become taxable as residents under these rules.
Austrian personal income tax is progressive. The 2026 marginal rates are 0% up to €13,539, 20% from €13,540–€21,992, 30% from €21,993–€36,458, 40% from €36,459–€70,365, 48% from €70,366–€104,859, 50% from €104,860–€1,000,000, and 55% above €1,000,000. The top 55% rate is stated to be temporary and applies until 2029, after which it is scheduled to fall back to 50%.
Employees also face mandatory social-security contributions, which are separate from income tax. In Austria, these contributions are typically split between employee and employer and cover pensions, health insurance, unemployment insurance, and accident insurance; the exact employee share depends on income and status, so the total burden is often materially higher than income tax alone.
- Newcomer rule: once you become tax resident, Austria taxes you on worldwide income; non-residents are generally taxed only on Austrian-source income.
- Tax treaty relief: double taxation is usually addressed by Austria’s tax treaties and by foreign tax credits/exemptions where the treaty allocates taxing rights to another country.
- Practical relocation point: if you arrive mid-year, income can be split between pre-residence and post-residence periods depending on your facts and treaty position.
- Figures year: the brackets and top rate above are the 2026 figures.
Because social-security rates and treaty outcomes can vary by employment type, nationality, and prior-country residence, relocators should check their exact case before filing.