1,284.6 euros per capita

Linz pays the most money to the state of any city in Austria

Officials at Linz City Hall are “not amused” by the comparatively high transfer payments to the state.(Bild: Pressefoto Scharinger/Daniel Scharinger)

“The state of Upper Austria is dipping deep into Linz’s coffers,” says the city’s finance councilor. He is referring to a recent survey showing that the per capita transfer payments Linz makes to the state are, in some cases, more than twice as high as those from other state capitals. 

Linz tops a ranking in which the city’s finance councilor, Thomas Gegenhuber (SPÖ), would much rather be near the bottom: At 1,284.6 euros per capita, Linz transfers more funds to the state than any other provincial capital in Austria. This is now confirmed by an analysis from the Center for Administrative Research (KDZ).

By comparison: In Klagenfurt, the transfer burden—essentially the sum of social assistance, hospital costs, and state contributions—amounts to 1,015.5 euros, while in Innsbruck it is 997 euros. Residents of Graz pay considerably less than half that per capita, at 477.8 euros (see chart). 

(Bild: Krone KREATIV/stock.adobe.com)

“A high transfer burden is not a law of nature”
Gegenhuber considers this unfair: “Compared to residents of other state capitals, the people of Linz pay a disproportionately high amount to the state—money that we are lacking.” Gegenhuber explains why Graz, in particular, has to contribute so much less to the state than Linz by pointing out that the State of Styria— “as provided for by the constitution”—bears full responsibility for its hospitals. A look at the neighboring state shows: “A high transfer burden is not a law of nature, but a political decision by the state.”

Council of Elders to Settle the Matter
The SPÖ politician is therefore now calling for an independent council of experts to scrutinize the financial equalization system within Upper Austria and develop proposals for a “fair restructuring.” He feels supported by the KDZ’s 2026 Municipal Finance Report, which states: “The issue of financial contributions is one of the main causes of the consistently negative trend in municipal finances in recent years.” Unless countermeasures are taken, “fiscal leeway will continue to deteriorate.”

Gegenhuber demonstrates that this also applies to Linz by extrapolating data from the 2025 financial statements and the forecasts from the City of Linz’s finance department. According to this, the per-capita burden of transfers will rise to 1,485 euros by 2027—an increase of 15.6 percent.