Austria’s governing coalition has reached an internal agreement to raise the tax‑free allowance for overtime bonuses starting in 2026. The decision follows weeks of negotiation within the ÖVP–SPÖ–NEOS coalition and comes as part of a broader effort to ease the tax burden on employees. Higher Tax‑Free Limit for Overtime Beginning next year, up to 15 overtime bonuses per month—amounting to a maximum of €170—will be exempt from income tax. The previously planned limit for 2026 had been €120 for up to 10 overtime hours. The adjustment builds on earlier reforms…
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What Austria’s 4% Inflation Really Means for Households
A deeper look at the November inflation data reveals a mixed picture: the overall rate is stable, but the lived experience of Austrian households varies sharply depending on what they buy, how they commute, and how much of their income goes to essentials. Below is a structured breakdown of the real-world impact. 1. Food Inflation Is Easing — but Still Eating Into Budgets Even though food price growth slowed to 3.1%, food remains one of the most sensitive categories for households because it’s unavoidable and purchased frequently. What this means…
Read MoreAustria’s Christmas Menu: Big Differences Across the Provinces
One week before Christmas, the question comes up again: what do people in Austria actually eat on Christmas Eve? Festive meals are a long‑standing tradition, but the dishes vary widely from one province to another. According to a recent iglo study, 43 percent of Austrians say they always serve a special dish on December 24, while another 28 percent stick to a traditional meal that can occasionally be changed. Raclette, cold platters, and soup are the favorites If you’re still undecided about your own Christmas dinner, the most popular choices…
Read MoreViennese Give Away 74 Million Euros in Gift Vouchers for Christmas
Gift vouchers remain the most popular Christmas present among Viennese residents in 2025. According to the Vienna Chamber of Commerce, around one third of the population – approximately 495,000 people – will give vouchers this year. The average value has risen to 150 euros, about 25 percent more than in 2024. Altogether, this amounts to a remarkable Christmas voucher volume of 74 million euros. “Gift vouchers are a safe choice,” says Margarete Gumprecht, Chair of the Retail Division. “They strengthen local businesses while offering recipients maximum flexibility.” Where the voucher…
Read More“Arbeitsnehmerveranlagung” (Employee tax assessment 2025): New rules and important deadlines
Anyone who wants to secure money from the tax office in good time at the turn of the year should keep an eye on deadlines and new rules for employee tax assessment. This is pointed out by the tax consulting company BDO. For the 2025 assessment year, extended benefits for teleworking apply, and the five-year period for the 2020 assessment expires on December 31, 2025. Home office becomes location-independent teleworking A new development is that the previous home office is being expanded to include location-independent teleworking. This means that working…
Read MoreAustria to Raise Public Transport Ticket Prices Starting January 2026
Vienna, Austria — Public transport users across Austria will face higher ticket prices beginning 1 January 2026, as regional transport associations and Vienna’s municipal operator introduce new fare structures to secure long‑term service quality and respond to rising operational costs. Vienna: First Major Fare Adjustment in Over a Decade Wiener Linien, Vienna’s public transport operator, confirmed that its new fare structure will take effect on 1 January 2026, marking the first significant price adjustment to the city’s ticket system in more than 13 years. The network has expanded substantially in…
Read MoreA Fog-Filled Pre‑Christmas Weekend in Vienna
Vienna is heading into yet another pre‑holiday weekend wrapped in thick fog. According to the latest forecast, the city won’t be shaking off its grey blanket anytime soon. Expect single‑digit temperatures and, with a bit of luck, perhaps a warm cup of punch at a Christmas market to brighten the mood. It’s a dreary December in the capital. And no, the grey isn’t coming from artificial snow on Christmas trees — it’s the weather right outside the door. Fog has become a constant companion for people making their way through…
Read MoreCity of Vienna to Raise Additional Fees Starting in 2026
Vienna will not only see higher public transport fares and parking costs next year — several other municipal fees will also increase beginning January 2026. MeinBezirk provides an overview of what residents can expect. Budget Background A few weeks ago, the City of Vienna presented an initial outline of its 2026 budget. The projected deficit stands at 2.65 billion euros, with planned expenditures of 22.16 billion euros. The full draft budget was published on November 14. Some fee increases had already been announced earlier. As of January 1, the annual…
Read MoreFamily and Traditions: How Austria Celebrates Christmas
For most people in Austria, Christmas is all about family. A new survey shows that three out of four Austrians see the holiday primarily as a family celebration. Interestingly, it is the younger generation that holds on to rituals most strongly, while older adults are increasingly letting go of traditional customs. Christmas as a Family Affair According to a recent ImmoScout24 survey, 76 percent of respondents plan to celebrate Christmas with their families. Only a small minority spend the evening with friends or on their own. Two-thirds (66 percent) celebrate…
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