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.
US and Canadian tax obligations don't stop at the border. We'll match you with a cross-border tax adviser we've checked ourselves — credentials, licensing, and real client outcomes in Austria.