Tax Reform 2022-2024 – Overview of Measures and Initial Assessment

The eco-social tax reform 2022-2024 will bring significant tax relief by reducing wage and income tax, enterprise taxation and health insurance contributions. In full, taxes will be reduced in 2025 by a total of 7.8 billion € (1.6 percent of GDP) per year, with net relief amounting to around 6.1 billion € (1.2 percent of GDP). At the same time, some of the structural imbalances in the Austrian tax system will be reduced. A CO2 price (and compensation measures) will be introduced in mid-2022, and the reduction in health insurance contributions will reduce the high tax burden on low incomes. Also, the reduction in wage and income tax provides compensation for cold progression.