Private Health Insurance Tax Deductible Austria: What You Can Claim

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Deducting Health Insurance from Taxes: The Legal Situation

The question of whether you can deduct private health insurance from taxes causes a lot of confusion. Since the 2016 tax reform, the rules have changed. Here's what applies.

The Most Important Distinction

Before and After 2016

Status	Contract Before 2016	Contract From 2016
Employees	Limited (Pool Special Expenses)	No
Self-Employed	Yes (Business Expenses)	Yes (Business Expenses)
Cross-Border Commuters	Yes (often Income-Related Expenses)	Yes (often Income-Related Expenses)

Important for Employees: Since 01.01.2016, premiums for private health insurance can NO longer be deducted as special expenses for new contracts!

For Employees: What's Still Possible?

Old Contracts (Before 01.01.2016)

If your insurance contract was signed before 01.01.2016, you can still claim the premiums as pool special expenses:

Conditions:

• Together with other pool special expenses (certain life insurances, housing construction)
• Maximum amount: €2,920 per year (higher for single earners)
• Only one quarter is effective (so max. €730 tax savings)
• Phase-out rule: From €36,400 income, the amount reduces

New Contracts (From 01.01.2016)

For new contracts: No deductibility as special expenses.

But there are two exceptions:

1. Extraordinary Expenses If you have high medical costs not covered by insurance, these may be deductible as extraordinary expenses under certain circumstances.

2. Mandatory Insurance Abroad In certain situations (e.g., secondment), mandatory health insurance contributions may be deductible.

For Self-Employed: How It Works

Business Expenses for Health Insurance

As self-employed, you can deduct your health insurance as business expense under certain conditions:

Requirements:

• The insurance coverage must correspond to that of statutory health insurance
• The premium must be reasonable
• The contract must be business-related

Insurance Type	As Business Expense?	Note
SVS Mandatory Contributions	Yes, fully	Always deductible
Supplementary Insurance (Private Room)	Partially/disputed	Ask tax advisor
Private Doctor Insurance	Partially possible	If business-related
Daily Sickness Allowance	Yes	Income replacement = business-related

Practical Example Self-Employed

Item	Annual
SVS Health Insurance	€3,000 (deductible)
Private Supplementary Insurance	€1,200 (check!)
At Marginal Tax Rate 42%	Tax savings approx. €1,260-1,764

Tip: The tax treatment of supplementary insurance is not clearly regulated. Speak with your tax advisor to clarify your individual situation.

Extraordinary Expenses: The Workaround

When Medical Costs Are Deductible

Even if premiums aren't deductible, actual medical costs can be claimed as extraordinary expenses:

Requirements:

• Costs were medically necessary
• They weren't (fully) reimbursed by insurance
• They exceed the income-dependent deductible

Typical deductible medical costs:

• Deductible at the insurance
• Non-covered treatments
• Medications and medical aids
• Travel costs to doctor/hospital

Deductible Calculation

The deductible for extraordinary expenses is calculated based on income:

Income	Deductible
up to €7,300	6%
up to €14,600	8%
up to €36,400	10%
over €36,400	12%

The deductible can be reduced by 1% each for children, single earner status, etc.

Cross-Border Commuters: Special Case

Working in Switzerland, Living in Austria

Cross-border commuters who work in Switzerland and live in Austria often have different rules:

• Swiss health insurance may be deductible as income-related expenses
• Applies if the insurance is necessary for professional activity
• The Austrian supplementary insurance may also be deductible

For Cross-Border Commuters: The tax situation is complex and depends on many factors. A specialized tax advisor for cross-border commuters is recommended.

Frequently Asked Questions

Can I deduct insurance for my children?

For employees with new contracts: No. For self-employed: Possibly, if the children are co-insured in the business.

What about dental supplementary insurance?

Same as for other supplementary insurance: For employees (new contract) not deductible, for self-employed possibly.

Does the rule also apply to civil servants?

Yes, civil servants are treated like employees in this respect. The tax rules are the same.

Will the law change again?

Currently there are no concrete plans to reintroduce deductibility. But tax laws can change – stay informed regularly.

Conclusion: Tax Deductibility of Health Insurance

The tax treatment of private health insurance has been severely restricted for employees since 2016. Self-employed have more options.

Summary:

• Employees with new contracts (from 2016): No deductibility as special expenses
• Self-employed: SVS contributions always deductible, check supplementary insurance
• Extraordinary expenses: Medical costs may be deductible under certain circumstances
• Always consult a tax advisor

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Disclaimer: This article does not replace tax advice. The tax treatment depends on your individual situation. For binding information, contact a tax advisor or the tax office. CheckEverything.at assumes no liability for the accuracy of the information.