"When I arrived in Norway 7 years ago, Norwegian taxation seemed impenetrable to me. Today, after filling in 7 tax returns and surviving a few surprises, I can assure you that the system is actually much simpler and more transparent than I expected — and British and American friends here tell me the same. I explain everything in this guide."
-- Ingrid, expat in Oslo since 2018
The Norwegian tax system: an overview
Norway has a tax system built on one fundamental principle: high taxation in exchange for high-quality public services. Free healthcare, education from nursery to university, generous parental leave, impeccable roads and infrastructure... Norwegian taxes fund one of the best-performing welfare states in the world.
Contrary to popular belief, the overall tax rate in Norway is not as astronomical as many newcomers fear. On an average salary (around 700,000 NOK), income tax and contributions come to roughly 27–30%, against about 19% for UK income tax and National Insurance on £40,000, or about 16% in US federal tax and FICA on $60,000 (plus 0–6% state tax). The gap is real, but it pays for healthcare, near-free schooling and capped childcare. What changes is the transparency: in Norway, every citizen can look up the income and tax paid by any other taxpayer. This is the famous Skattelister.
Skatteetaten (literally "the tax administration") is the body that manages all taxation in Norway. It is the equivalent of your home country's tax authority. Its website (skatteetaten.no) is remarkably well made, available in English, and most procedures are done entirely online.
The main taxes and contributions in Norway are:
- Income tax (Inntektsskatt): a base rate of 22% on ordinary income
- Employee social contributions (Trygdeavgift): 7.9% of gross income
- Progressive tax on high incomes (Trinnskatt): from 1.7% to 17.6% depending on the bracket
- Wealth tax (Formueskatt): for assets above 1.7 million NOK
- VAT (MVA - Merverdiavgift): standard rate of 25%
Honestly, when I saw my first Norwegian payslip, I got a shock: about 33% of my gross pay went on tax and contributions. But looking more closely, it was comparable to what I paid back home in France (social contributions included). British and American friends see a bigger jump on paper — but here, there are no healthcare bills, nursery fees are capped, and education is free. In the end, I come out well ahead.
-- IngridIncome tax: brackets and rates
Norwegian income tax is made up of several elements that add together. Here is the breakdown, so you can understand exactly what is deducted from your salary.
1. Ordinary income tax (Skatt på alminnelig inntekt)
All income (salary, investment income, rental income) is subject to a flat rate of 22% after deduction of a personal allowance (Personfradrag) of about 88,250 NOK. This rate applies uniformly, whatever the amount of income.
2. Employee social contributions (Trygdeavgift)
All tax residents pay a social contribution of 7.9% on their gross income. This contribution funds the Norwegian social security system (NAV), which covers healthcare, pensions, unemployment and parental leave.
3. Progressive tax (Trinnskatt)
This is the progressive element of the system. It only applies above certain income thresholds:
| Income bracket (NOK) | Rate (Trinnskatt) | Equivalent ($ / £) |
|---|---|---|
| 0 - 208,050 NOK | 0% | $0–22,050 / £0–16,480 |
| 208,050 - 292,850 NOK | 1,7% | $22,050–31,040 / £16,480–23,190 |
| 292,850 - 670,000 NOK | 4,0% | $31,040–71,020 / £23,190–53,060 |
| 670,000 - 937,900 NOK | 13,6% | $71,020–99,420 / £53,060–74,280 |
| 937,900 - 1,350,000 NOK | 16,6% | $99,420–143,100 / £74,280–106,920 |
| Above 1,350,000 NOK | 17,6% | Above $143,100 / £106,920 |
A concrete example: calculating tax on a typical salary
Let's take the example of an expat with a gross salary of 600,000 NOK per year (about $63,600 / £47,520), a common salary for a qualified profile in Norway:
| Component | Calculation | Amount |
|---|---|---|
| Ordinary income tax (22%) | (600 000 - 88 250) x 22% | 112,585 NOK |
| Social contributions (7.9%) | 600 000 x 7,9% | 47,400 NOK |
| Trinnskatt bracket 1 (1.7%) | (292 850 - 208 050) x 1,7% | 1,442 NOK |
| Trinnskatt bracket 2 (4.0%) | (600 000 - 292 850) x 4,0% | 12,286 NOK |
| Total tax | 173,713 NOK | |
| Effective tax rate | ~29% | |
| Annual net salary | ~426,287 NOK |
Effective tax rate for a salary of 600,000 NOK/year (social contributions included)
In the UK, income tax plus National Insurance on a £40,000 salary takes about 19%. In the US, federal income tax plus FICA on $60,000 (single) is about 16%, plus 0 to around 6% state income tax. Norway takes more — roughly 27–30% on an average salary — but that covers public healthcare, near-free education and capped nursery fees, costs that weigh heavily on UK and especially US household budgets.
-- IngridThe tax return: Skattemelding
The Skattemelding (formerly called Selvangivelse) is the annual tax return that every Norwegian taxpayer must check and confirm. Good news: it is largely pre-filled by the tax authority.
How does it work?
Every year, in March-April, Skatteetaten makes a pre-filled return available to you with:
- Your salary income (reported by your employer)
- Your bank interest and investment income
- Your debts and mortgages
- Your assets (bank accounts, property, vehicles)
- Your deductible donations
Your job is simply to check that everything is correct and add any missing items (income abroad, additional deductions, etc.).
The return is done entirely online through the skatteetaten.no portal, accessible with your BankID or MinID. The interface is available in Norwegian and English. Most salaried taxpayers need only 10 to 15 minutes to confirm their return.
Steps for filing
Log in to skatteetaten.no
Use your BankID or MinID to identify yourself. The pre-filled return is available from March.
Check your income and deductions
Go through each section: salaries, investment income, loan interest. Check that the amounts match your payslips.
Add any missing items
Declare any income abroad, your bank accounts outside Norway, and your property in your home country or elsewhere. Don't forget the deductions you are entitled to.
Confirm and submit
Click "Lever" (submit) before the 30 April deadline. If everything is correct, you can also do nothing: the pre-filled return is automatically confirmed at the deadline.
In my first year, I panicked when I saw the form in Norwegian. Since then, I always switch the language to English at the top of the page. And above all, I keep all my payslips in a digital folder so I can check easily. In 7 years, I've found only one error (a travel expense reimbursement wrongly declared by my former employer). The system is really reliable.
-- IngridIf you have income in your home country (rental income, dividends, etc.), you must declare it in Norway, even if it has already been taxed there. The double taxation treaty will prevent you being taxed twice, but omitting foreign income can lead to penalties.
Skattekort: the tax card
The Skattekort (tax card) is an essential document for every employee in Norway. It tells your employer how much tax to withhold from your salary each month. Without a valid Skattekort, your employer is obliged to withhold 50% of your gross salary in tax.
How do you get your Skattekort?
If you are new to Norway, here is what to do:
- Request your Fødselsnummer or D-nummer from Skatteetaten
- Log in to skatteetaten.no with your ID
- Your Skattekort is generated automatically and sent electronically to your employer
- You have no physical document to hand over: everything is done digitally
There are two main types: the Tabelltrekk (withholding according to a table, the most common), which adjusts withholding month by month for an even spread, and the Prosenttrekk (withholding at a fixed percentage), which is sometimes used for irregular income. For most employees, the Tabelltrekk is assigned automatically.
Changing your Skattekort
You can change your tax card at any time if your situation changes (change of salary, mortgage, childcare costs, etc.). This lets you adjust the monthly withholding and avoid overpaying, or having too much left to pay at the end of the year.
When I bought my apartment and took out a mortgage, I updated my Skattekort online straight away. As loan interest is deductible, my monthly withholding fell by about 2,000 NOK a month. It's simple and quick, and takes 5 minutes on the Skatteetaten website.
-- IngridDouble taxation: UK, US and other countries
Norway has double tax treaties with most countries, including the UK (2013 treaty) and the United States, to prevent expats being taxed twice on the same income. If you come from another country (Canada, Australia, Ireland...), check the list of Norway's tax treaties on regjeringen.no or ask Skatteetaten. The exact rules always depend on the treaty in question.
General principles
Here are the main principles, as they typically apply under the UK–Norway treaty (always check the treaty text for your situation):
| Type of income | Main taxing country | Details |
|---|---|---|
| Salaries | Norway | Taxed in the country where the work is performed |
| Rental income (property back home) | Property country (e.g. UK) | Taxed in the country where the property is located, but also declared in Norway, with a credit for tax paid abroad |
| Retirement pensions | Norway | Generally taxed in the country of residence (government-service pensions are often taxed by the paying country — check the treaty) |
| Dividends | Both | Taxed in both countries, with a tax credit to avoid double taxation |
| Interest | Norway | Taxed only in the country of residence |
| Property capital gains | Property country | Taxed in the country where the property is located; Norway may also tax the gain, with a credit for tax paid abroad |
UK: when you leave, tell HMRC with form P85. If you keep UK income (rent, for example), you will usually still need to file a UK Self Assessment return, and as a non-resident landlord you come under the Non-Resident Landlord (NRL) scheme — apply with form NRL1 to receive rent without tax deducted at source. US: the US taxes its citizens on worldwide income wherever they live, so you must file Form 1040 every year, plus an FBAR if your foreign accounts total more than $10,000 at any point in the year. The Foreign Earned Income Exclusion (FEIE) or the foreign tax credit usually prevent you paying twice, and the US–Norway totalization agreement coordinates social security. Forgetting these obligations is one of the most common mistakes expats make.
Chapter 11 of the guide includes an interactive tax calculator
Enter your salary, status and family situation: the tool calculates your exact Norwegian tax and compares Norway with the UK and the US.
Get the guide →How do you determine your tax residence?
You are considered a Norwegian tax resident if you meet any of these criteria:
- You stay in Norway for more than 183 days in any 12-month period
- You stay in Norway for more than 270 days in any 36-month period
- Your permanent home (main residence, family) is in Norway
I kept a rental apartment in Lyon during my first years in Norway. The tax side was a bit complex: declaring the rent in France AND in Norway, a tax credit to avoid double taxation... Whatever country you come from, if you keep property or investments back home, I strongly recommend consulting an accountant specialising in international taxation in your first year. The cost (about 3,000 to 5,000 NOK) is more than repaid by the mistakes avoided.
-- IngridTaxes for the self-employed
If you are selvstendig næringsdrivende (self-employed) or enkeltpersonforetak (sole proprietor) in Norway, your tax regime differs slightly from that of employees.
Main differences
| Item | Employee | Self-employed |
|---|---|---|
| Social contributions (Trygdeavgift) | 7,9% | 11,0% |
| Ordinary income tax | 22% | 22% |
| Trinnskatt | Identical | Identical |
| Deduction of business expenses | Limited | Full |
| Tax prepayments | Monthly withholding | 4 instalments/year |
The social contribution rate for the self-employed is 11.0% versus 7.9% for employees. This difference compensates for the absence of employer contributions. In return, the self-employed can deduct all of their actual business expenses (office, equipment, travel, software, etc.).
Advance payments (Forskuddsskatt)
Unlike employees, who have tax withheld every month, the self-employed must pay quarterly instalments (Forskuddsskatt) on the following dates:
- 15 March: 1st instalment
- 15 May: 2nd instalment
- 15 September: 3rd instalment
- 15 November: 4th instalment
If you're thinking of going freelance in Norway, be aware that the enkeltpersonforetak (sole proprietorship) is very simple to set up: free online registration with Brønnøysundregistrene and you're up and running within 24 hours. However, plan your cash flow carefully for the tax instalments. I know several freelancers who were surprised by the amounts they had to pay.
-- IngridWealth tax: Formueskatt
Norway applies a wealth tax (Formueskatt) that affects tax residents whose net assets exceed certain thresholds. It is one of the last European countries to maintain this tax.
Wealth tax brackets
| Taxable net wealth | Municipal rate | National rate | Total rate |
|---|---|---|---|
| Up to 1,700,000 NOK | 0% | 0% | 0% |
| 1,700,000 - 20,000,000 NOK | 0,7% | 0,3% | 1,0% |
| Above 20,000,000 NOK | 0,7% | 0,4% | 1,1% |
For married couples, the exemption threshold is doubled, to 3,400,000 NOK.
What counts towards wealth
- Property: valued at 25% of market value for the main residence, 100% for second homes and rental investments
- Bank accounts: value on 31 December
- Shares and funds: valued at 80% of market value (listed shares) or 75% (unlisted shares)
- Vehicles: estimated declining value
- Assets abroad: including in your home country, with the same valuation rules
Debts are deducted from gross wealth (mortgages in particular).
The favourable valuation of the main residence (25% of market value) is a major advantage. An apartment worth 5,000,000 NOK will only count for 1,250,000 NOK in your taxable wealth, which is below the exemption threshold. In practice, most expats with "ordinary" assets (main residence + moderate savings) are not affected by this tax.
VAT in Norway: MVA (Merverdiavgift)
Norwegian VAT, called MVA (Merverdiavgift), is an indirect tax on consumption. It works on the same principle as VAT elsewhere, but with different rates.
The three VAT rates
| Rate | Percentage | Goods and services covered |
|---|---|---|
| Standard rate | 25% | Most goods and services |
| Reduced rate | 15% | Food and non-alcoholic drinks |
| Super-reduced rate | 12% | Passenger transport, hotels, cinema, sporting events, museums |
Some goods and services are exempt from VAT: healthcare services, education, financial services and residential property.
The Norwegian standard rate (25%) is higher than the UK's (20%), and the US has no VAT at all — just state and local sales tax of 0 to around 10%. The most notable difference concerns food: 15% in Norway versus 0% on most food in the UK. It is one of the reasons groceries cost noticeably more in Norway. Add the special taxes on alcohol and sugar, and the bill adds up quickly.
-- IngridFor businesses
If you are self-employed or run a business with turnover above 50,000 NOK per year, you must register in the MVA register and charge VAT to your customers. VAT returns are filed every two months through the Altinn.no portal.
Tax benefits and deductions
The Norwegian tax system offers several deductions and tax benefits that can significantly reduce your tax bill. Here are the main ones.
Main deductions
Personal allowance (Personfradrag)
88,250 NOK deducted from your taxable income. Applied automatically, no action needed. This allowance makes the first 88,250 NOK of income exempt from ordinary income tax.
Loan interest (Rentefradrag)
The interest on your loans (mortgage, student, consumer) is deductible at 22%. If you pay 100,000 NOK in interest, your tax falls by 22,000 NOK. It's a major advantage for homeowners.
Travel costs (Reisefradrag)
If your commute exceeds 37 km round trip, you can deduct 1.70 NOK/km beyond the threshold of 14,400 NOK. An advantage mostly useful for those who live on the outskirts.
Donations to charities (Gavefradrag)
Donations to approved organisations are deductible up to 25,000 NOK per year. The deduction is automatically taken into account if the organisation reports it for you.
Retirement savings (IPS)
Contributions to an individual pension savings plan (Individuell Pensjonssparing) are deductible up to 15,000 NOK per year. A good way to reduce your tax while saving for the future.
Childcare (Foreldrefradrag)
Childcare costs for children under 12 are deductible up to 25,000 NOK for the first child and an additional 15,000 NOK per further child.
Special regime for expats: PAYE (10% flat tax)
Since 2019, foreign workers newly arrived in Norway can opt for a simplified tax regime during their first 5 years. This regime, called kildeskatt på lønn, applies a flat rate of about 25% (including social contributions) on gross salary, with no deductions possible.
Personally, I opted for the normal regime from the first year because I still had a mortgage back home whose interest was deductible. But for a single expat with no loan or children, the simplified regime can be advantageous: no complicated return and a competitive rate. Do the maths for your personal situation before choosing!
-- IngridPay-as-you-earn
In Norway, tax withholding at source has been the norm for decades. Your employer withholds tax from your salary each month according to your Skattekort. You only receive your net salary after tax and social contributions have been deducted.
How it works in practice
On your payslip (lønnsslipp), you will see:
- Bruttolønn: your gross salary
- Skattetrekk: the amount of tax withheld
- Trygdeavgift: social contributions (included in the Skattetrekk)
- Pensjonsinnskudd: the supplementary pension contribution (OTP)
- Nettolønn: your net salary paid into your account
Annual settlement (Skatteoppgjør)
In June of the following year, you receive your Skatteoppgjør (final tax assessment). Two cases are possible:
Overpaid (Tilgode)
You paid too much tax during the year. The excess is refunded automatically to your bank account, generally between June and October. Most employees receive a refund.
Balance to pay (Restskatt)
You haven't paid enough tax. You receive a bill to pay in two instalments (August and October). Late-payment interest applies if the advance payments were insufficient.
In Norway, the day tax assessments are published (generally in June) is almost a national event. People check online how much they will receive or pay. It's also the day the newspapers publish the income and taxes of public figures. In 7 years, I've always had a small refund, between 5,000 and 15,000 NOK. The trick: adjust your Skattekort properly during the year so that the withholding is as accurate as possible.
-- IngridTax calendar: the dates to remember
Here are the important deadlines of the Norwegian tax year. Note them carefully in your diary so you don't forget anything.
New Skattekort
Your new Skattekort comes into force for the current year. Check that the information is correct and adjust it if necessary (change of salary, new loan, etc.).
Skattemelding available
The pre-filled return for the previous year goes online on skatteetaten.no. You can start checking it and amending it if needed.
Filing deadline
Last day to submit your amended Skattemelding. If you do nothing, the pre-filled version is automatically confirmed. The self-employed have until 31 May.
Skatteoppgjør (tax assessment)
You receive the final tax assessment. You find out whether you are getting a refund or owe more. Refunds are paid out within a few weeks.
1st Restskatt deadline
If you owe additional tax, the first half is to be paid before the end of August.
2nd Restskatt deadline
The second half of the additional tax is due. After this date, late-payment penalties apply.
December half-tax (Halv skatt)
A Norwegian tradition: in December, tax withholding is halved so that people can pay for the festive season. Your net salary in December is therefore higher than usual.
In December you pay only half of your monthly tax. A welcome bonus before the festive season.
The December Halv skatt is one of my favourite traditions in Norway. My net salary in December is about 8,000 NOK higher than usual. Norwegians love this system because it lets them enjoy the Christmas period to the full. It's clever: you pay a little more for the rest of the year, but you get a real "bonus" in December. In my first year, I didn't know about it and got a very pleasant surprise.
-- IngridFrequently asked questions about Norwegian taxes
Yes, as a Norwegian tax resident, you must declare all bank accounts and financial assets held abroad, including those in your home country. This includes current accounts, savings accounts (such as UK ISAs), pension and retirement accounts, life insurance policies and securities or brokerage accounts. These will appear on your Skattemelding and will be taken into account in the wealth tax calculation.
When you leave Norway, you remain a Norwegian tax resident until the end of the year of departure (unless you can prove you no longer have substantial ties to Norway). You will need to file a final Skattemelding for the year of departure. If you have lived in Norway for more than 3 years, Norway may maintain your tax residence for the year of departure and the following 3 years, unless you can show a new tax residence in another country.
In Norway, short-term rental income (Airbnb-style) is exempt from tax up to 10,000 NOK a year if you rent out part of your main residence. Above that, 85% of the excess amount is taxed as capital income (22%). If you rent out a separate property, all of the rental income is taxable. For a property abroad let on Airbnb, the income is declared in that country AND in Norway.
If you live in Norway and work remotely for a foreign company, you are in principle taxable in Norway on that income (the place where the work is performed). However, the situation can be complex depending on your contract and how long you are in Norway. Your foreign employer may have to register with the Norwegian tax authorities or put you on a "secondment". Consult an international tax expert to structure your situation properly.
Often, yes. As a Norwegian tax resident, your worldwide income is taxable in Norway, including income and gains from investments back home. Tax wrappers such as a UK ISA are not recognised by Norway, so the gains become taxable here. Pensions (UK workplace pensions and SIPPs, US 401(k) and IRA accounts) follow more complex rules that depend on the treaty and on when money is withdrawn. Americans should also be careful with Norwegian investment funds: the IRS generally treats them as PFICs, which are taxed very harshly in the US. The values of these investments may also count towards the wealth tax base. This is a point often overlooked by expats: get advice from a cross-border tax specialist before moving or reorganising your savings.
Skatteetaten offers a free advice service by telephone and in person by appointment. Its advisers can help you understand your tax obligations and fill in your return. The service is available in Norwegian and English. For complex questions on international taxation (for example UK–Norway or US–Norway), a specialist private tax adviser will be more suitable (allow 1,500 to 3,000 NOK/hour).
Cryptocurrencies are treated as taxable assets in Norway. Gains realised when you sell are taxed at 22% (tax on capital income). The value of your crypto-assets on 31 December is included in the calculation of wealth tax. You must declare every transaction (purchase, sale, exchange) on your Skattemelding. Skatteetaten has developed specific tools to make declaring crypto-assets easier.
Questions about your tax situation in Norway?
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