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Germany vs Austria
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇩🇪 Germany
vs
🇦🇹 Austria
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
0–55%
55% top bracket; bracket creep relief measures
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
10–20%
Standard 20% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
21%
Reduction to 21% taking effect 2026 (from 23%)
-2.0pp vs 2025

Capital Gains Tax

Capital Gains Tax
25%
Investment income reform proposals under review
No change
27.5%
KESt flat rate unchanged
No change

Social Security & Payroll

Social Security / Payroll
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
~41.5%
Contribution ceiling raised; health costs increasing
+0.5pp vs 2025
State, Regional & Local Taxes

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

🇦🇹 AustriaMunicipal & Church Taxes

Austria's 9 Bundesländer (states) do not set separate income tax rates — this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Austria: Key Tax Differences (2026)

💰 Income Tax: 🇦🇹 Austria has a higher top income tax rate (14–45% vs 0–55%). 🇩🇪 Germany is more favourable for high earners.

🛒 VAT/Sales Tax: Austria has a higher consumption tax (7–19% vs 10–20%).

🏢 Corporate Tax: 🇦🇹 Austria offers a lower corporate rate (21% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇩🇪 Germany taxes investment gains at a lower rate (25% vs 27.5%), benefiting investors.

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