Germany vs Austria Salary Comparison 2025: Taxes, Cost of Living, and Benefits

Germany vs Austria Salary and Tax Comparison 2025

Germany and Austria offer strong job markets, but taxes, social security, and living costs differ. Compare both countries before relocating or accepting offers.

Salary Benchmarks

German salaries tend to be slightly higher in tech, engineering, and automotive sectors, especially in Munich and Stuttgart. Vienna and Graz provide competitive packages with lower housing costs. Review industry-specific salary surveys to benchmark offers.

Income Tax and Social Security

Germany’s progressive tax bands reach 45% above €277,826, while Austria’s top rate hits 55% above €1 million. Social security contributions are similar (Germany ~20% employee share, Austria ~18%), but Austria caps contributions at lower income levels, potentially lowering the overall burden for high earners.

Cost of Living

Housing in Vienna is generally cheaper than Munich. Public transport, childcare, and healthcare coverage are robust in both countries. Factor in mandatory health insurance choices in Germany (GKV vs PKV) compared to Austria’s unified system.

Quality of Life

Austria excels in quality-of-life rankings thanks to environmental quality and cultural offerings. Germany boasts diverse job hubs and stronger internal mobility for multinational careers.

Recommendation: Model net salary using country-specific calculators, assess relocation incentives, and weigh lifestyle preferences alongside compensation.