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.
| 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?
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