He is likely to face Alexander Van der Bellen, an independent contender backed by the Greens, who is polling 20%.
For the first time since World War Two, the candidates from Austria's two main parties did not make it to the run-off.
Rudolf Hundstorfer from the Social Democrats and the centre-right People's Party Andreas Kohl are each thought to have taken about 11% of the vote.
Both parties have governed Austria for decades - either alone or in coalition.
This is a big shake-up in Austrian politics, the BBC's Bethany Bell in Vienna reports, as the country has had a president from the centre-left or centre-right since 1945.
The clear victory of the far-right candidate reflects widespread discontent with the status quo, as well as concerns about immigration and the economy, our correspondent says.
Support for the Social Democrats and the People's Party has been falling in recent years.
In the last general elections in 2013, the two parties won just enough votes [to] govern in a "grand coalition"."...
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