This means that wages and salaries are taxed at different tax rates depending on the amount. These tariffs increase with income up to 50 percent, in rare cases of very high income even up to 55 percent.
The first tariff level starts at 11,000 euros in taxable income, from here 20 percent tax is due. From 18,000 euros it is already 32.5 percent, from 31,000 euros 42 percent, from 60,000 euros 48 percent and from 90,000 euros 50 percent. Tariff level 6 only begins with an annual income of one million euros.
The problem is that these tariff levels have not been adjusted, they are rigid. Salary increases, which are also designed to compensate for inflation, regularly result in people moving up to the next higher tariff level and the increase is taxed above average in such a way that, taking into account the inflation rate, nothing remains of the increase. This means that the state collects the salary increase. So this is a hidden tax increase or an inflation tax and has repeatedly flushed billions into the coffers of finance ministers in the past. According to calculations by the Agenda Austria think tank, the first tariff level would have to rise to EUR 12,916 in the coming year and to EUR 13,596 in 2025 in order to avoid cold progression.
Source: Nachrichten
