Taxes in Austria in 2025: Changes you need to know π¦πΉ
As of January 1, 2025, new tax rules have come into force in Austria that are important for all taxpayers. These changes are aimed at improving the financial situation of citizens and include increased income thresholds, which will allow many Austrians to keep more of their money. π In this article, we will take a detailed look at the new tax tables, changes to deductions, and other important aspects regarding income tax in Austria in 2025.
What's new in taxes in 2025? π
New Income Tax Table
Under the new rules, the main changes to the 2025 tax table are as follows:
| Income (2025) | Income (2024) | Tax rate (2025) | Tax rate (2024) |
|---|---|---|---|
| up to 13,308 euros | up to 12,816 euros | 0 % | 0 % |
| up to 21,617 euros | up to 20,818 euros | 20 % | 20 % |
| up to 35,836 euros | up to 34,513 euros | 30 % | 30 % |
| up to 69.166 euros | up to 66,612 euros | 40 % | 40 % |
| up to 103,072 euros | up to 99,266 euros | 48 % | 48 % |
| up to 1,000,000 euros | up to 1,000,000 euros | 50 % | 50 % |
| over 1,000,000 euros | over 1,000,000 euros | 55 % | 55 % |
As you can see from the table, the tax thresholds have been increased by almost 4%, which significantly eases the burden for many citizens. For example, incomes up to 13,308 euros are now completely exempt from tax. This means that lower incomes will be taxed less or not at all. π
Eliminating "cold progression"
One of the key measures is the partial elimination of "cold progression", which is achieved by raising the maximum limits for tax rates. This measure will avoid a situation whereby wage growth automatically leads to an increase in tax liabilities without a real increase in the purchasing power of citizens. According to preliminary estimates, as a result of these changes, taxpayers with low and middle incomes will be able to save more than 2 billion euros. π°
Increase in deductions
In 2025, changes are also envisaged in deductions for various categories of citizens:
- New payments for single parents and pensioners have been taken into account.
- The mileage limit for business trips has been increased to 0.50 euros per kilometre.
- It is planned to increase the threshold for small businesses to 55,000 euros.
All these measures are aimed at improving the financial situation of taxpayers and supporting low-income families. π
Who benefits from all this? π€
Support for families and workers
Among the most important groups that will benefit from the new tax changes are:
- Low paid workers: They will be able to keep more of their earnings thanks to the increase in the tax-free minimum.
- Families with children: Additional benefits and deductions will make life more comfortable.
- Small entrepreneurs: Increasing limits and deductions will help them grow their business.
This improvement in the tax climate will likely lead to increased consumer spending, which in turn will contribute to the country's economic growth. πΌ
Conclusion and findings
In 2025, Austria is taking significant steps towards improving its tax system. Raising tax thresholds, eliminating "cold progression" and supporting families are steps that will help citizens feel financially stable. Taxes in Austria are now fairer and more focused on supporting those who need it. π‘
If you have any questions or want to learn more about taxes in Austria, feel free to share your opinion in the comments! π’
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