Personal Income Tax in Norway in 2026: Rates, Deductions and Rules
A detailed overview of taxation for individuals in Norway: from income tax and social contributions to deductions and changes for 2026. Useful for residents and expats.
Moving to Norway opens many opportunities, but it also presents expats with a complex challenge: understanding the local tax system. Norwegian taxation is known for its multi-layered structure and high rates, which are compensated by quality social benefits. This article explains the key aspects of taxes for individuals in simple language - from determining your status to filing annual returns and upcoming changes in 2026.
Key Taxation Principles
Tax Resident vs. Non-Resident
Your tax obligations in Norway depend directly on your resident status. You are considered a tax resident if you meet one of these criteria:
- You stay in Norway for more than 183 days within any 12-month period
- You stay in Norway for more than 270 days within any 36-month period
Tax residents must pay taxes in Norway on all their worldwide income (salary, rental income, bank interest, etc.), unless otherwise provided by tax treaties. Non-residents pay taxes only on income from Norwegian sources.
Main Types of Taxes for Individuals
The tax system for individuals in Norway consists of several components:
Income Tax (Inntektskatt)
The main tax, which consists of a 22% flat rate on net income plus a progressive bracket tax (trinnskatt) on gross income.
Social Contributions (Trygdeavgift)
Mandatory contributions to the state insurance system, providing access to pensions and social benefits. The rate is 7.8% of gross income (reduced by 0.1% in 2026).
Wealth Tax (Formuesskatt)
Applied to net assets (property value minus debts) exceeding 1.7 million NOK. The rate is 1%, with an increased rate of 1.1% on assets over 17 million NOK.
Income Tax: Structure and 2026 Rates
Base Rate: 22% on Net Income
This is the basic tax levied on your "general income" (alminnelig inntekt). General income is your salary and other income minus certain expenses and deductions (such as loan interest, commuting expenses). For 2026, this tax rate is 22%.
Progressive Tax Brackets (Trinnskatt) 2026
| Annual Income (NOK) | Tax Rate |
|---|---|
| Up to 208,050 | 0% |
| 208,051 - 292,999 | 1.7% |
| 293,000 - 670,000 | 4.0% |
| 670,001 - 937,999 | 13.6% |
| 938,000 - 1,500,000 | 16.6% |
| Over 1,500,000 | 17.6% |
Maximum marginal tax rate: 47.4% for high earners (22% base + 17.6% bracket + 7.8% social contributions)
Simplified PAYE System for Non-Residents
For foreign workers temporarily in Norway, there is a simplified PAYE (Pay As You Earn) tax system. It involves a fixed 25% tax on gross income. This system is convenient because the tax is final and you don't need to file a return at year-end. However, you cannot claim most tax deductions. You can opt out of PAYE in favor of the general system if more beneficial.
Tax Deductions: How to Reduce Your Tax
Personal Allowance (Personfradrag)
The personal allowance for 2026 has been increased to 114,210 NOK. This amount is automatically deducted from your taxable income, meaning you don't pay tax on the first 114,210 NOK of your income.
Minimum Standard Deduction (Minstefradrag)
An automatic deduction calculated as a percentage of your income to cover work-related expenses. For 2026, the maximum deduction has been increased to 114,210 NOK. You don't need to claim this specifically - it's applied automatically.
Other Important Deductions
Pension Savings Deduction
Up to 25,000 NOK per year for contributions to individual pension savings plans (increased in 2026).
Mortgage Interest Deduction
You can deduct interest paid on any debts, including mortgages (even for property abroad) and consumer loans.
Child-Related Deductions
Parents can deduct expenses for daycare and after-school activities for children under 12 years old.
Commuting Expenses
Deduction for daily commuting between home and work if expenses exceed a certain threshold.
Union Membership Fees
Paid union fees are also deductible.
Charitable Donations
Deduction for donations to state-approved charitable organizations.
Tax Return Filing Process (Skattemelding)
Pre-Filled Tax Return
Every year in March or April, the Norwegian Tax Administration (Skatteetaten) sends you a pre-filled tax return (Skattemelding). It contains all information about your income, assets, and debts that the tax authority received from your employer, banks, and other institutions.
Your main task is to carefully check all the data. If the information is correct, you don't need to do anything. If there are errors or you want to add deductions, you must make corrections.
Filing Deadline
The deadline for filing your tax return is April 30 of the year following the tax year. If you don't file by this deadline, it will be accepted as pre-filled, and you may lose important deductions.
Online Submission
All changes and submissions are done online through the Altinn portal or on the Skatteetaten website. You need to log in using your electronic ID (e.g., BankID).
Tax Assessment (Skatteoppgjør)
After processing your return, usually between June and October, you'll receive a final tax assessment (Skatteoppgjør). It will show the final calculation: either you'll get a refund of overpaid tax (til gode) or you'll need to pay additional tax (restskatt).
What's New in 2026: Key Changes
The Norwegian government has presented the 2026 budget proposal with several adjustments to the tax system. Overall, the proposed changes aim to slightly reduce the tax burden for most individuals.
Reduced Social Contributions
Social contribution rate reduced by 0.1 percentage point to 7.8% (from 7.9%).
Increased Personal Allowance
Personal allowance increased to 114,210 NOK, reducing taxes for all income levels.
Higher Bracket Thresholds
Income thresholds for progressive tax brackets adjusted upward, benefiting middle-income earners.
Increased Pension Deduction
Maximum deduction for individual pension savings increased to 25,000 NOK.
Tax Support for Youth
New pilot scheme introducing employment tax credit for young people to encourage labor market participation.
Note: These are proposals that must be approved by Parliament (Storting). Final changes may differ from the initial budget proposal.
Frequently Asked Questions
When do I become a tax resident of Norway?+
You become a tax resident if you stay in Norway for more than 183 days in any 12-month period or more than 270 days in any 36-month period. From that moment, you must pay taxes on your worldwide income.
How do I calculate my income tax in Norway as a resident in 2026?+
Your total tax consists of:
- 22% on your net income (after deductions)
- Progressive bracket tax (trinnskatt) on gross income according to the table above
- 7.8% social contributions on gross income
The maximum marginal rate can reach 47.4% for high earners.
What is the minimum standard deduction in Norway for salary income?+
The minimum standard deduction (minstefradrag) is automatically calculated as a percentage of your income to cover work-related expenses. For 2026, the maximum has been increased to 114,210 NOK. It's applied automatically - you don't need to claim it.
What is PAYE for non-residents in Norway with a 25% fixed rate?+
PAYE (Pay As You Earn) is a simplified tax scheme for foreign workers temporarily in Norway. A fixed 25% tax is withheld from your gross income. The advantage is that it's final - no tax return needed. The disadvantage is you can't claim most deductions. You can opt out in favor of the regular system if it's more beneficial.
How do I file my tax return online in Norway?+
Tax returns are filed online through the Skatteetaten website or Altinn portal. Log in with your BankID, review the pre-filled information, make any necessary corrections, and submit by April 30. If everything is correct, you don't need to take any action.
What is the wealth tax threshold of 1.7 million NOK in Norway?+
The wealth tax (formuesskatt) applies to net assets (value of property minus debts) exceeding 1.7 million NOK for individuals (3.4 million for married couples). The rate is 1% on assets above this threshold, with an increased rate of 1.1% on assets over 17 million NOK.
Can I deduct mortgage interest and child expenses in the Norwegian tax system?+
Yes! You can deduct interest paid on mortgages (including for property abroad) and consumer loans. Parents can also deduct expenses for daycare and after-school activities for children under 12. These deductions reduce your taxable income.
What are pension savings deductions up to 25,000 NOK in Norway 2026?+
For 2026, you can deduct up to 25,000 NOK per year for contributions to individual pension savings plans (increased from previous years). This reduces your taxable income and encourages retirement savings.
Sources and Further Reading
Calculate Your Exact Tax in Norway
Use our free interactive calculator to see your exact tax burden, take-home pay, and effective rate based on your income. Updated with 2026 rates and all deductions.
Disclaimer
This article provides general information about taxation in Norway and should not be considered professional tax advice. Tax laws are complex and subject to change. For specific situations, please consult with a qualified tax advisor or the Norwegian Tax Administration (Skatteetaten). The information is current as of January 2026 based on the proposed budget, but final rates may vary after parliamentary approval.