Tax credits

In order to counteract cold progression, the tax deductions (the single-earner, single-parent tax credit and support money deduction, as well as the transportation and pensioner deductions), including the phase-in limits and the social security refund will be adjusted by two-thirds of the inflation rate each year starting in 2023.

For the calendar year 2024, the tax deductions listed, including the phase-in limits and the social security refund, were increased by the full inflation rate of 9.9 percent. The child deduction and the family allowance are adjusted annually by the full inflation rate in accordance with Section 108f ASVG.

1. With the travel credit, there is a single level of credit for all employees, regardless of their income tax liability or cross-border commuter status. For those entitled to a flat-rate commuter credit, the travel credit is increased to 798 Euro (in 2023: 726 Euro) as long as income does not exceed 14,106 Euro (in 2023: 12,835 Euro) in the calendar year. The increased travel credit is tapered down to 463 Euro (in 2023: 421 Euro) incrementally between incomes of 14,106 and 15,030 Euro (in 2023: 12,835 and 13,676 Euro). From the 2024 assessment, the travel credit increases by 752 Euro (in 2023: 684 Euro) (supplement) as long as the taxpayer’s income does not exceed 18,499 Euro (in 2023: 16,832 Euro) in the calendar year. From the 2024 assessment, the supplement is tapered down incrementally to zero between 18,499 and 28,326 Euro (in 2023: 16,832 and 25,774 Euro) (this is taken into account only as part of the assessment process).
2. For a maximum pension income of 23,043 Euro (in 2023: 20,967 Euro) per annum, maximum spouse income 2,545 Euro (in 2023: 2,315 Euro) per annum and no sole earner credit.
3. The sole earner and single parent credits increase by 255 Euro (in 2023: 232 Euro) in each case for each additional child.
4. In its ruling of 16 June 2022, C-328/20, the ECJ ruled that the indexation of family-related tax deductions (Family Bonus Plus, supplementary child credit, single-earner, single-parent credit and support money deduction) applicable as of 1 January 2019 for children who permanently reside or have resided in another EU member state or in the territory of another contracting party to the Agreement on the European Economic Area or Switzerland does not comply with EU law. Accordingly, the indexation was repealed retroactively (for more information, see "Questions and answers on the indexation of tax deductions (→ BMF)^{German text}").

Further links

• The Tax Book (→ BMF)^{German text}
• Tax rates and tax credits (→ BMF)^{German text}
• Tax credits in detail (→ BMF)^{German text}

Legal bases

Determination of the adjustment factor: section 108f of the Allgemeines Sozialversicherungsgesetz (ASVG)