People who reside in Austria and earn income are subject to income tax. They must pay tax on part of their income to the tax authority.
More specifically, employees and pensioners pay wage tax, while self-employed individuals pay income tax. If you have an income from an employment relationship or a pension, the wage tax is automatically deducted.
People whose income falls below a certain level do not have to pay tax. In 2025, the following annual income limits apply for tax exemption:
- for employees: EUR 14,517
- for exclusively self-employed persons: EUR 13,308.s
Among other things, the state uses taxes to finance social benefits and services for the population, such as schools, roads and the police.
You can learn more about this topic on the website of the Chamber of Labour.