State tax reform 2025: 2 billion euros discharge for families!

State tax reform 2025: 2 billion euros discharge for families!

With the beginning of 2025, significant tax changes come into force in Austria, which counteract the cold progression in particular. This measure, which was perceived as a creeping tax increase, was abolished in 2023 and ensures a relief for taxpayers of around 2 billion euros in the coming year. Finance Minister Gunter Mayr emphasizes that the adjustments bring people a noticeable plus in their wallets to promote the economic well -being. The adjustment takes place primarily by increasing the income tax tariff limits and significant deduction amounts, which is primarily due to the inflation rate of 5 %, which was measured between July 2023 and June 2024. These measures are a strong sign of social fairness and economic stability, says Mayr.

tariff boundaries and deduction amounts raised

The most important changes affect the increase in tariff limits: from 2025, the limits that are currently starting at 11,693 euros will be raised to EUR 13,308. The first five tax tariff levels also benefit from an increase of approximately 4 percent, while maximum tax rate of 55% for income from 1 million euros is excluded from this adjustment. In addition, essential deductions, including the single earner and single parent deduction, are fully adapted to inflation. This will mainly support families who are relieved by the new children's surcharge, which is 60 euros per month and child. This support will also be linked to inflation from 2026 to secure the purchasing power in the long term, such as Kurier.at

The changes to the cold progression will have a positive effect on the tax burden on the citizens and are part of a more comprehensive plan for the government's tax reform. The measures mentioned also include raising the mileage allowance for business trips and adjustments to non -cash benefits for official apartments. The increase in the small business limit to 55,000 euros is also to relieve the economy. However, critics of the reform, including the NEOS, warn that the tax burden remains on a record high and see the abolition of the cold progression as a real relief, but as an waiver of a tax increase, such as ots.at summarized.