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What’s New in 2026 for the Self-Employed in Austria: A Premium Guide to Key Updates

Written in collaboration by Pascal Schraml, Miglena Hofer, and Marta Srebrakowska



As we move into 2026, the Austrian regulatory and fiscal landscape continues to evolve, balancing inflation adjustments with stricter digital compliance. For the modern entrepreneur, staying ahead of these changes isn’t just about sticking to the rules - it’s about optimizing your bottom line and protecting your business from unnecessary administrative hurdles.

Here is your high-level briefing on the essential updates for the 2026 financial year.



Tax Adjustments: Keeping More of Your Earnings

The Austrian government has once again adjusted tax brackets to counteract "bracket creep" (cold progression), ensuring that inflation doesn't eat away at your real income.


The Change: Tax limits have been raised by approximately 1.73%. You now only start paying income tax once your profit exceeds €13,539 (up from €13,308 in 2025).


The 2026 Brackets:

  • 0% Rate: Up to €13,539

  • 20% Rate: €13,539 – €21,992

  • 30% Rate: €21,992 – €36,458

  • 40% Rate: €36,458 – €70,365


What this means in simple words: You get to keep a little more of your money before the tax office takes a cut. It’s a small "inflation shield" for your wallet.




Expense Simplified: The 15% Lump Sum & Higher Limits

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