Tax relief for millions: This is how Austria's households benefit!

Tax relief for millions: This is how Austria's households benefit!

Austria's taxpayers can look forward to positive financial discharge in the coming year. From January 2025, the end of the so -called cold progression for over eight million people will have a noticeable impact. This was decided two years ago, but the advantages are only now fully flowing to the accounts of the citizens. The Austrian Ministry of Finance estimates that the state saves around two billion euros through this regulation and that taxpayers will benefit from the inflation burden at the same time, as the finance minister emphasized in a current declaration, according to 5min.at .

tax relief thanks to the sliding inflation adjustment

The reality of increasing living costs has charged many taxpayers because inflation has reduced the available income. The end of the cold progression concretely means that the tax burden no longer automatically increases with inflation, which has led to a gradual financial devaluation in recent years. For example, an employee with gross income of 2,500 euros in January 2025 will suddenly earn around 17 euros more net. Self -employed and pensioners also benefit from these adjustments. The inflation rate, which serves as the basis for the tax adjustments, is set to five percent, based on the values between July 2023 and June 2024, as reported by the responsible supervisory authorities, and this could offer a temporary compensation for the financial difficulties incurred by inflation.

But there are not only developments to be observed in Austria. The entire euro zone fights with different inflation rates, which were measured in September 2024 with 2.0%. Germany, for example, shows an inflation that fell from 3.1% to 2.0% in August at the beginning of the year. The predictions for 2025 indicate moderate stabilization, with a corresponding reduction in the inflation rate to 2.2%, which the ECB and economic experts see as a success to keep prices stable, reports Verwertsteuerrechner.de .