Linz tops Austrian state capitals in financial burden
Friday 18th September 2026 on 14:30 in
Austria
Linz has the highest per capita burden from transfers and levies among Austria’s state capitals, according to an analysis by the Centre for Administrative Research reported by ORF Upper Austria. Linz Finance Councillor Thomas Gegenhuber of the Social Democratic Party is calling for an independent council of experts to review Upper Austria’s internal fiscal equalisation system.
The analysis published on Friday puts Linz’s burden at 1,284.6 euros per resident, ahead of Klagenfurt at 1,015.5 euros and Innsbruck at 997 euros. Graz recorded the lowest figure, at 477.8 euros per resident.
The calculation is based on 2024 figures and includes the main levies and transfer payments, including social assistance, hospital and state levies. To make the cities comparable, the analysis also included expenditure incurred by Linz and Graz as social assistance associations.
The figures presented by the city show that Linz’s burden has risen sharply in recent years. It stood at 977.8 euros per resident in 2020, while the analysis forecasts 1,441.1 euros for 2026 and about 1,485 euros for 2027.
Gegenhuber described the situation as a structural imbalance and said it was unfair that Linz residents faced a much heavier burden than residents of other state capitals. He called for an independently appointed council of experts to develop proposals for redesigning Upper Austria’s internal fiscal equalisation system.
He also referred to the Centre for Administrative Research’s 2026 municipal finance report, which says cities and municipalities cannot meet the targets of the stability pact without structural reforms by the federal government and the states. The report identifies the levy problem as a main cause of the deterioration in municipal finances.
Margit Angerlehner, the Austrian People’s Party group leader in the Upper Austrian state parliament, rejected Gegenhuber’s criticism. Linz should first deal honestly with its own financial situation instead of constantly blaming the state, she said.
Angerlehner also accused Linz of increasingly withdrawing from the joint financing of important projects in recent years, saying the state had been forced to make up the shortfall.