Income tax thresholds and allowances adjusted by 2.27% for 2027
Austria's Finance Ministry has indexed various income tax thresholds, deductions, and allowances under the 1988 Income Tax Act by 2.27% for the calendar year 2027, based on two-thirds of the measured inflation rate (3.4%). The new euro amounts apply to tax calculations from 1 January 2027.
What changed
The Austrian government adjusts income tax brackets and allowances annually to reflect inflation. For 2027, amounts are increased by 2.27% (two-thirds of the 3.4% inflation rate). This affects dozens of thresholds used to calculate tax liability, deductions for children, elderly dependents, disabled persons, and special expenses. All amounts are rounded up to whole euros.
Who is affected
All employees, self-employed persons, and other income earners in Austria who must file income tax returns or whose employers calculate withholding tax. Anyone claiming deductions or allowances—such as child tax credits, disability allowances, or special expense deductions—will see new threshold amounts applied to their 2027 tax assessment.
What to look out for
The regulation contains a detailed table of 30+ adjusted euro amounts covering income thresholds (€13,846), various deductions (ranging from €39 to €107,236), and special allowances. Tax software and employer systems must be updated before 1 January 2027 to apply the new figures. The regulation automatically repeals once these changes are published in Austria's federal law gazette (Bundesgesetzblatt).