Austria has no special expat or pensioner regime. Become tax resident and your worldwide income is taxed at 0% to 55%. The offsets: no inheritance tax, a flat 27.5% on investments, and treaties that keep US Social Security taxed only in the US. Here are the 2026 numbers.
Last verified: 8 July 2026Austria taxes residents on worldwide income at progressive rates. Brackets are indexed annually against inflation (the "cold progression" adjustment — +1.733% for 2026). The 2026 table:
| Taxable income (annual) | Rate |
|---|---|
| Up to €13,539 | 0% |
| €13,539 – €21,992 | 20% |
| €21,992 – €36,458 | 30% |
| €36,458 – €70,365 | 40% |
| €70,365 – €104,859 | 48% |
| €104,859 – €1,000,000 | 50% |
| Above €1,000,000 | 55% (not indexed) |
Marginal rates, applied slice by slice: a couple with €60,000 of taxable pension income does not pay 40% on all of it. Capital income sits outside this table at a flat 27.5%.
| United States | Canada | |
|---|---|---|
| Keep filing? | Yes — the US taxes citizens on worldwide income wherever they live. Foreign tax credits offset most double taxation; at Austrian rates, you'll usually owe Austria more than the IRS. | Generally no, once you cease Canadian tax residency — but watch departure tax on the deemed disposition of assets when you leave. |
| Treaty | US–Austria treaty (signed 1996, in force 1998). Social security paid by one state to a resident of the other is taxable only by the paying state — US Social Security stays US-taxed. Private pensions and IRA withdrawals have their own articles: get advice. | Canada–Austria tax treaty in force (1976, amended). CPP/OAS and RRIF treatment is article-specific; withholding rules apply to periodic payments. |
| Social security coordination | Totalization agreement in force since Nov 1, 1991 — no double contributions, credits totalized. | Revised Canada–Austria social security agreement in force July 1, 2023. |
| Accounts reporting | FBAR and FATCA obligations continue on Austrian accounts; some Austrian banks are reluctant to onboard US persons. | Standard CRA departure forms on exit; simpler thereafter. |
Social Security, IRAs, 401(k)s, and Roths under the treaty — what's settled, what's grey.
Departure tax, RRSP/RRIF decisions, and ceasing residency cleanly.
FATCA friction, which banks onboard Americans, and keeping US brokerage accounts.