Vienna to Expand Employer Tax for Subway Funding

The Neos party agrees to expand Vienna's employer tax to include service contracts, raising 17 million euros for subway construction.

The party has agreed to expand the employer tax, a measure designed to generate 17 million euros for subway construction. The city government will decide on the draft next week, with implementation scheduled for the first quarter of 2027.

Under the new proposal, independent service contracts will be included in the tax, and the current age limit of 55 years will be abolished. Finance Councilor Barbara Novak and Neos chair Selma Arapovic confirmed the tax rate remains at 2 euros per week.

The tax has funded Vienna's subways since 1970. Neos approved the expansion on the condition that no new fees or taxes are introduced for 2027. This ensures continued infrastructure investment while maintaining a stable fiscal environment for employers.