All foreign nationals working in Austria for more than six months are defined, for taxation purposes, as residents in Austria, and are therefore liable for taxation on all the income they derive
from Austrian sources.
Personal income tax and social security contributions are deducted directly from your pay-cheque, on a progressive scale:
- 0 percent on incomes under EUR 11,000
- 36.5 percent on incomes between EUR 11,000 and EUR 25,000
- 43.2 percent on incomes between EUR 25,000 and EUR 60,000
- 50 percent on incomes higher than EUR 60,000
Note that Austria has double taxation agreements in place with more than 40 countries. Expats who hail from a country with one such agreement in place will not have to pay tax on their Austrian-source income as well as any income they generate from within their country of origin.