The Social Democrats garnered 39.4 percent and the Freedom Party (FPÖ) placed second with 31 percent.
The Social Democrats have won every election in the area since 1945.
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The centre-left SPÖ has won the Vienna state election but the far-right Freedom Party has made significant gains and recorded its best ever result in the capital.
The Social Democrats (SPÖ), which have ruled Vienna uninterrupted since 1945, scored 39.4 percent, down 4.9 points, while the Freedom Party (FPÖ) rose 5.3 points to 31 percent.
The Green party is projected to have won 11.6 percent (down 1 point) and the centre-right People's Party (ÖVP) 8.7 percent (down 5.3) - its worst ever result. The ÖVP's top candidate Manfred Juraczka has said he will step down.
The moderate Neos party made the most gains and looks set to win 6.2 percent and its first seat in the city council.
Opinion polls before the election had forecast a much closer result, with even a victory for the FPÖ on the back of unease among voters about Europe's refugee crisis.
The result, if confirmed, would in theory make possible a continuation of the SPÖ's coalition in Vienna with the ecologist Greens - together they would have 54 seats in the city council.
"Of course we would have preferred a neck-and-neck result, but this didn't happen. At the same time it has to be said that this is the SPÖ's worst result in its history," said FPÖ leader Heinz-Christian Strache, 46.
"I said before (the election) that I was ready to assume the responsibility of becoming mayor. Today it wasn't enough yet, but we took a step closer," he said.
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