Energy taxation in Austria is to be paid for electricity, natural gas coal and aviation. There is a tax exemption for self-generated and self-consumed electrical energy from renewable energy sources from electricity producers, including communal generation plants and renewable energy communities ("Erneuerbare-Energie-Gemeinschaften").

Most notably, since 2022, certain measures to improve the energy efficiency of buildings have been tax-privileged ("Öko-Sonderausgabenpauschale"). The following expenses are considered for tax purposes as special expenses, provided that federal funding under the Environmental Promotion Act (Umweltförderungsgesetz) has been paid out for them:

• The thermal-energetic refurbishment of buildings (e.g., insulation of exterior walls and roofs, or replacement of windows and exterior doors) with the aim of improving the energy and thermal efficiency of the building
• The replacement of a fossil heating system with a climate-friendly heating system, a so-called "boiler replacement," e.g., replacing oil, gas or coal with a new climate-friendly heating system such as a heat pump, district heating or pellets

Since October 2022, a CO2 price (CO2 tax) of EUR 30 per ton of CO2 has been levied in Austria. It must be paid by companies that produce or import fuels in Austria. This will increase the cost of fuel prices and heating oil. The CO2 taxes are offset by a climate bonus of up to EUR 220 per person per year.

The Federal Act on Renewable Heat Supply in New Buildings (Erneuerbare-Wärme-Gesetz — EWG), which entered into force on 29 February 2024, is intended to generally prohibit the installation of heat-supply systems based on fossil fuels for space heating and/or hot water preparation in new buildings (with corresponding transitional provisions for projects under construction). Regarding the replacement of fossil-fuel heating systems with climate-friendly alternatives in existing buildings, various funding programs have been introduced (see topic "Incentives for green retrofit").