Employment Cost Calculator for Austria
Calculate the total cost of employing someone in Austria, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (Employer Share) | ~20.98% | Gross salary (up to EUR 6,450/month) |
| Family Burden Equalization Fund (FLAF) | 3.7% or 3.9% | Gross salary |
| Municipal Payroll Tax | 3% | Monthly gross salaries and wages |
| Mandatory Employee Severance Fund | 1.53% | Monthly gross salaries |
Filing & Compliance
- Payroll taxes and social security contributions must be paid by the 15th of the following month.
- Annual income tax statements for each employee must be filed by the end of February.
- Electronic municipal tax reports are due no later than March of the following year.
In Austria, employee tax deductions encompass income tax, social security contributions, and other potential deductions for specific expenses and allowances.
Income Tax
- Progressive Tax Rates: Austria's income tax system uses progressive rates, meaning higher earners pay a larger percentage of their income in tax. For 2025, the tax brackets are:
- Up to €13,308: 0%
- €13,308 to €21,617: 20%
- €21,617 to €35,836: 30%
- €35,836 to €69,166: 40%
- €69,166 to €103,072: 48%
- €103,072 to €1,000,000: 50%
- Above €1,000,000: 55%
- Tax-Free Allowance: A basic amount of income (€19,618.53 for employees in 2025 without 13th/14th-month salaries) is tax-free, including certain tax credits like transportation deductions.
- Lohnsteuer (Payroll Withholding): Employers deduct income tax directly from employee salaries monthly and remit it to the tax authorities.
- Special Payments (13th/14th Salary): These payments are generally taxed at a lower rate of 6% up to certain limits, with the first €620 being tax-free.
- Annual Tax Assessment (Arbeitnehmerveranlagung): Employees are not usually required to file an annual tax return if their sole income is employment income subject to Lohnsteuer. However, filing a return is recommended to claim deductions or if income circumstances change mid-year. The deadline for paper filing is April 30th of the following year, and electronic filing (via FinanzOnline) is June 30th.
Social Security Contributions
- Employee and Employer Contributions: Both employees and employers contribute to the social security system.
- Contribution Rate: The total contribution is typically around 37.45% of the employee's gross salary, with the employee portion deducted directly from the salary.
- Coverage: Social security contributions cover healthcare, pensions, unemployment insurance, and other benefits.
Other Deductions and Allowances
- Work-Related Expenses: Employees can deduct certain work-related expenses, including home office expenses (up to €300 as of 2024), work equipment, training costs, and transportation. A standard deduction of €132 applies if no specific expenses are listed.
- Special Expenses: Deductions are available for specific expenses like church tax, certain donations, and tax consultancy costs.
- Extraordinary Burdens: Deductions are possible for extraordinary burdens, such as high healthcare costs or childcare expenses exceeding certain thresholds.
- Allowances: Various allowances, such as the single-earner or single-parent allowance and the commuting allowance (Pendlerpauschale), can reduce the taxable income.
This information is current as of February 5, 2025, and may be subject to change.
