In 2021, the Austrian government decided to implement tax reform. It provides for a gradual reduction in tax rates for individuals from 2022 to 2024. The goal of the reform is to increase incomes and purchasing power of the population, stimulate economic growth and create new jobs.
On August 29, the Inflation Adjustment Decree for 2024 was published. The inflation rate calculated in accordance with local legislation is 9.9%. Taking this into account, according to section 33 (1a) of the Income Tax Law, the income limits of citizens that will be taken into account during the calculation of income tax for 2024 are adjusted by two-thirds of the positive inflation rate, that is, increased by 6.6%.
Thus, if in 2023 the income limit for personal income tax purposes was up to 11,693 € for a rate of 0%, then in 2024 it will increase to 12,465 €.
The resolution also adjusts the amounts of deductions, tax credits and allowances.