Payroll accounting values for the year 2026

• Pension severance pay: The threshold for the application of preferential taxation of pension severance pay (half tax rate) will increase from €15,900.00 to €16,500.00 as of January 1, 2026.
• Interest on arrears in social security: The interest rate for late payment interest on outstanding social security contributions is to be reduced from 7.03% to 5.53% as of January 1, 2026.
• Revaluation of tax values through the Inflation Adjustment Ordinance (Federal Law Gazette II No. 191/2025), see the following notes.

Inflation Adjustment Regulation 

The Inflation Adjustment Ordinance sets the following income tax brackets for 2026:

The sole earner deduction, the single parent deduction, the transportation deduction, and the pensioner deduction will be adjusted as follows as of January 1, 2026:

• AVAB/AEAB (annual): one child €612.00, two children €828.00, each additional child €273.00; additional income limit for AVAB (partner's income): €7,411.00.
• Transport allowance (annual): €496.00, increased transport allowance €853.00 (phasing-in limits: €15,069.00 to €16,056.00), supplement to the (increased) transport allowance €804.00 (bracket limits: €19,761.00 to €30,259.00).
• Pensioner deduction (annual): €1,020.00 (phasing limits: €21,614.00 to €31,494.00), increased pensioner deduction €1,502.00 (phasing limits: €24,616.00 to €31,494.00).

Payroll tax table 2026

As the income tax rate is derived from the wage tax rate, as in previous years, there will be a corresponding increase in the wage brackets in the wage tax table in 2026. The following monthly wage tax table for employees applies for the 2026 calendar year:

_{*Official confirmation from the Federal Ministry of Finance is still pending!}