Austria scraps its tax-free home-office allowance from 1 January 2027

Austria will abolish its tax-free telework allowance (Telearbeitspauschale) from 1 January 2027. Employers can currently pay up to €3 a day, for up to 100 days a year, free of tax and social-security contributions. From 2027 any such payment becomes ordinary taxable salary. The self-employed lose their workplace allowances (Arbeitsplatzpauschale) at the same time. The change was made by the Budgetbegleitgesetz 2027–2028, published in the federal gazette on 29 July 2026 (BGBl. I Nr. 62/2026), and has been widely reported this month as the start date approaches (The Local Austria; OÖNachrichten).

Why this matters

If you work from home in Austria, an employer allowance of up to €300 a year that currently arrives untaxed will be taxed from January. If you are self-employed and claim a workplace allowance, budget for a higher tax bill on your 2027 income. The deduction of up to €300 a year for ergonomic furniture survives, but according to the reports it will require a telework agreement rather than a count of home-working days.

Context

The law dates from July; what is new is that it takes effect in about seven weeks. For the wider picture of tax and social insurance for the self-employed in Austria, see our guide to Austrian tax and SVS for neue Selbstständige. Check your own position with a tax adviser.