Austria plans to cut 4.5 billion euros ($5.2 billion) in taxes -- about 1.5 percent of economic output -- in the next three years as it tries to deliver on Chancellor Sebastian Kurz’s campaign promises while keeping the budget on track for a surplus.

The coalition government of conservatives and nationalists will start with about 1 billion euros of cuts mostly benefiting low-income workers in 2020, Kurz told reporters ahead of a meeting that starts Thursday in Mauerbach outside of...