Vienna is drastically increasing local taxes: 8.5 percent from December 2025!

Vienna is drastically increasing local taxes: 8.5 percent from December 2025!

From December 1, 2025, the local tax in Vienna will increase from the current 3.2 percent to a whopping 8.5 percent. This decision is already causing a stir. The city expects additional revenue of around 81 million euros, which will be used for climate-relevant projects. But how do those responsible in the hotel industry react to this drastic measure? gloobi.de reports that the increase in local tax will primarily affect overnight prices in hotels and will therefore have to be borne directly by the guests.

The Austrian Hotel Association (ÖHV) has already spoken out loudly against the planned increase. President Walter Veit describes the measure as a “price increase without anything in return.” According to him, guests are already under pressure from high inflation and this additional levy will hit travelers on smaller budgets particularly hard. He warns that this tax increase sends the wrong signal given the economic uncertainty aviation.direct.

The economic impact

Veit's criticism is not only directed against the local tax itself, but also against politics. He criticizes a contradiction in the city government's approach: While prices are being pushed down by law, taxes are being increased at the same time. This additional financial burden raises questions, especially since the city is already benefiting from rising prices aviation.direct.

The Vienna Tourism Association, which is entrusted with promoting tourism, is also affected by this decision. The association is financed through its own income, subsidies, donations and, last but not least, the local tax collected. The tax is payable by all guests who stay overnight in Vienna for a fee, regardless of whether they are traveling privately or on business wko.at.

• Die Zahlungspflichtigen sind:
  • Urlauber und Geschäftsreisende
  • Gäste mit Zahlungsverpflichtung durch Dritte
• Ausnahmen:
  • Minderjährige in Ausbildung
  • Studierende an Wiener Hochschulen
  • Längerfristige Aufenthalte über drei Monate

The collection of the local tax is the responsibility of the accommodation providers, who must pay it to the magistrate by the 15th of the following month. There is therefore a careful billing procedure that is based on the Vienna Tourism Promotion Act wko.at.

The reactions from the hotel industry show that the industry needs a good hand for its future in this difficult economic situation. Concerns are high and it remains to be seen how guests will react to the future increase.