The government decides: tips remain exempt from taxes
After long negotiations, it was finally agreed in Austria to keep tips (Trinkgeld) tax-exempt for employees. Instead of imposing direct taxes on these tips, a new system will be adopted that will gradually come into effect from 2026, where specific amounts will be added as a virtual tip to the basis for calculating social insurance contributions (ASVG).
Starting from 2026, a default value of 65 euros per month will be calculated for employees dealing with financial collection (Inkasso), and 45 euros for those not dealing with collection. In 2027, these amounts will rise to 85 euros, reaching 100 euros per month in 2028. These amounts are used only as a symbolic value for calculating contributions, without affecting the actual tips received by the employee.
Even if the actual tips exceed these specified amounts, no additional taxes will be imposed on them, ensuring that workers in the service sectors benefit from tips without direct tax burdens.
These new rules are expected to lead to a slight increase in social contributions, estimated at just a few euros. The government, represented by Minister of Social Affairs Corina Schumann (SPÖ) and State Secretary for Tourism Elisabeth Ziehtner (ÖVP), will announce today the full details of the new regulation.
To ensure legal clarity for companies, a general amnesty will be enacted covering all ongoing procedures since 2021, which will be closed without demanding payment of overdue dues. Legal protection will also be granted for unexamined cases, in addition to a mechanism for addressing exceptional cases that involve particularly high claims in previous files. This new system aims to provide long-term planning security for both employees and companies.