Distributional Effects of Taxes and Social Security Contributions 2015

The burden of taxes and social contributions on private households is high in Austria. The tax ratio of households with income predominantly from gainful employment is 37.3 percent on average, higher than that of all households at 34.3 percent. The tax burden varies depending on the income level and structure: in 2015, households in the lower third of the income distribution spent 13.4 percent of their total gross income on indirect taxes and 12.2 percent on direct taxes (a total of 25.6 percent of income), households in the upper third of income spent 6.8 percent on indirect taxes and 30.8 percent on direct taxes (a total of 37.6 percent). In relation to all households, the tax system thus has a clearly progressive effect.