Income tax policy has changed significantly in recent years, in particular due to the extensive elimination of cold progression. In order to take the monetary value into account, the tax rate and the so-called tax deductions are now adjusted annually.

Cold progression was abolished in two stages. Last year, these adjustments were achieved through the Inflation Adjustment Ordinance and the Progression Adjustment Act. The combination of both measures determines the key figures for the calendar year 2024.

The following table shows the development of the limit values over the past three years. This includes both the changes resulting from the abolition of cold progression and the reduction in the tax rate for corporations, such as limited liability companies.

Steuertarif 2024 Österreich
Tax rates per year  until 2022 2023 2024
0% to 11.000 11.693 12.816
20% to 18.000 19.134 20.818
30% to 31.000 32.075 34.513
40% to 60.000 62.080 66.612
48% to 90.000 93.120 99.266
50% over 90.000 93.120 99.266
Corporation tax (fixed % rate) 25% 24% 23%

See also  Income tax table 2024  from tax consultant Schwaz

And here is an overview of the most important tax deductions (but these are by no means all of them and, for the sake of clarity, without showing the conditions):

Deductions until 2022 2023 2024
AVAB/AEAB (1 child) pa 494 520 572
UAB pm for 1 child * 29,20 31 35
VAB pa (for active employees) 400 421 463
PAB pa (for pensioners) 828 868 954

*) different amounts apply for each additional child

AVAB = sole earner deduction
AEAB = single-parent deduction
UAB = maintenance deduction
VAB = transport deduction
PAB = pensioner deduction

Tax rate 2024: Any questions?

Our team at Geisler & Hirschberger Tax Consultants Austria will be happy to answer your questions -> Contact us now 

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