How income tax works in Norway. Find out how much tax you can expect to pay from your salary this year in Norway with our handy guide.
If there’s one topic that always kick-starts a debate here on Life in Norway and on all our social media channels, it’s Norwegian tax.
Many people contact me asking how much tax they should be paying. Without knowing their salary and a bunch of other personal information, it’s a difficult question to answer.
That’s because like many other countries, Norway operates a progressive system for income tax. That means the more you earn, the more tax you pay on a percentage basis.
However, it's possible to work out your expected tax bill by doing a few calculations. There's plenty of online calculators to help you along the way, too.
How Norwegian income tax works
Income tax is deducted from your monthly salary by the employer on behalf of the Norwegian state. The tax-year runs January-December and your estimated annual tax bill is worked out at the beginning of the year.
From this, the monthly deductions are calculated. If you pay too much or little, the difference is settled on the personal tax return the following year.
Read more: Credit cards in Norway
If you know you’ll be earning more or less than estimated during the year, you are able to make changes to these figures. This helps prevent a big tax bill at tax return time.
Income tax is split into various elements, and the basis for these taxes is different. To fully understand your situation, you need to calculate these two figures:
Personal income: Your total income.
Tax basis: This basis for taxation is your personal income minus any deductions that you are entitled to. These vary. However, everyone receives a standard deduction (minstefradrag) equal to 45% of your gross employment income, up to a maximum of 104,450kr. Most employees also receive a personal deduction (personfradrag), which is 79,600kr for most people. Remember, these so-called ‘deductions' are simply a method to work out your taxable income.
Income tax rates in Norway in 2023
Income tax is split into a base rate and a step tax, to allow for progressive taxation.
The base rate (alminnelig inntekt) of income tax in Norway is 22%. Those who live in Finnmark or Nord-Troms will pay 18.5%. There is a then a so-called step tax (trinnskatt), sometimes called bracket tax. This is a progressive tax rate based on four levels, as follows.
For the first 198,349kr of your personal income, you will not pay any step tax. Then, 1.7% step tax is owed on the amount between 198,350kr and 279,149kr. Then, there is a 4% step tax on the amount between 279,150kr to 642,949kr. Over and above this amount, the step tax increases significantly.
You will pay 13.5% step tax on the amount between 642,950kr and 926,799kr. For those living in Finnmark and Nord-Troms, this level of step tax is reduced to 11.5%. For all income between 926,800kr and 1,499,999kr, a 16.5% step tax is charged. Finally, everything above 1.5 million kroner is taxed at 17.5%.
These top brackets have been lowered in recent years while the rates have stayed the same or slightly increased. This has led to quite a tax hike for the highest earners in Norway.
Social security payments in Norway
One of the reasons income tax is often perceived as high is that social security or national insurance payments are taken from wages at the same time as income tax.
Read more: Get a credit check in Norway
In Norwegian, this is known as trygdeavgiften. Most employees see one big deduction on their payslip, but this deduction covers both taxes.
As with step tax, national insurance contributions are calculated on your personal income. That’s your gross income before any deductions.
Most people pay 7.9% contributions on their personal income. That's down from 8% in 2022 and 8.2% in the years before that. If your income is below NOK 64,650, you don't pay any contributions.
How much income tax will I pay in Norway in 2023?
As I said before, the final amount you pay will be determined by many factors based on your personal circumstances. However, with the bands outlined above you have all the information you need to get a rough estimate.
If maths isn't your thing or you have unique individual circumstances, check out the income tax calculator offered by the Norwegian Tax Administration. Simply fill in your estimated income, wealth and any relevant deductions. You'll then see an estimate of the tax you have to pay.
For example, a single person born in 1981 earning 600,000kr would pay a total of 153,117kr in tax deductions, which includes 47,400kr social security payment. The same person earning 1,000,000kr would pay a total of 324,832 kr.
These examples do not take into account any personal circumstances such as property ownership, debt and interest payments, personal wealth etc.
Note that filling in figures here does not do anything to change the amount of tax you pay. It's simply an estimation tool. To change the amount of tax you pay, you'll need to request a new tax card, also from the Norwegian Tax Administration.
Monthly tax payments in Norway
It’s relatively straightforward to calculate a rough estimate of your annual tax liability in Norway. However, that doesn’t mean your monthly tax liability will be 1/12 of that amount. Norway uses a 10.5 month system of taxation, rather than a 12 month one.
You pay half the normal monthly tax in December and zero tax in June. In fact, most employees don't receive normal salary in June. That month is when you receive the holiday pay accrued from the year before.
That payment is not taxed, so typically you'll receive a higher monthly payment in June. Here's how holiday pay in Norway works. It's a good article to read, as the process is quite different from many other countries and confuses many newcomers.
What if I'm paying too much tax?
At the beginning of every year, the tax authorities give a ‘tax card' to your employer to let them know how much to deduct each month. This code is based on your previous year's income.
If you believe you're paying too much tax, you have two options. Firstly, you can log on to the Skatteetaten website and request a new tax card.
You're able to see your expected annual income, expected yearly tax liability, plus how much you have paid to date. You're able to adjust your expected annual income so that your employer receives a correct tax card.
Alternatively, you can just wait! If you have indeed paid too much tax during the course of a year, you'll receive a rebate through the following year's tax return process.
An important note
Please understand, I am not a qualified accountant. This means I will not be able to answer any questions pertaining to your tax situation! I've simply written this article based on published facts and figures from Norway's tax authorities.
As your own personal tax rate, there are many other factors that could impact the final amount. Things such as whether you own a house or not, your level of pension contributions, and a whole range of other factors can all make a difference.
That being said, I hope this article helps you to understand the tax system a little better.
I see insurance rate is 8.2%. Would that cover all health needs or just medical? Even if it was just basic health insurance sounds like an equitable program to me.
Thought 450k as an average salary sounded a bit low. According to SSB, average monthly salary is 44 160 NOK, which works out to 530k/year.
Can you please give an idea that how the tax basis “Tax basis: 450,000 – 104,450 – 51,300 = 294,200” came out for the Personal income: 450,000kr. I mean what are these numbers 104,450 and 51,300 and how to interpret. Thanks!
Hi, they are the two deductions explained further up in the post. Thanks!
David, is the 104k number not exceeding the mentioned maximum of 100k?
Good spot. The smaller number was the 2019 one, this has been increased for 2020.
Thanks for the great works you being doing. Am a Nigerian I got plan of moving to Norway and I just want to know how much one has to have to sustain himself for 6 months In Norway. And I want to know if there is any safe area with regard to natural disaster in Norway?
Is it possible for you to just put a calculator to caculate tax based on the monthy/yearly salary ?
Thanks for the nice article.
Hi, sorry but I’m a writer not a programmer!
Hey for simple tax calculations can use state site
Here is the link!
https://www.skatteetaten.no/person/skatt/beregn-skatten-din/
Hi David,
can you tell me what to do to get back my 10% foreign basic tax refund I was entitled to in previous 2years, 2017 and 2018… where can one claim that, or see if one has received it under what section? What is it the proper term for it and what is it exactly called.
There is no such refund. There is a 10% deduction, but that is exactly that – a deduction from your total income on which your tax is based. But it replaces other deductions. I do not know if you can resubmit a tax return for previous years – you will have to contact the tax office about that.
Hei David,
Any news about this matter? I am interested aswell.
News about what?
Hi! Peculiar one but as a Brit in Norway with a not so clued up Norwegian partner, I was hoping you could answer a question for me.
On backdated payments, IE stuff you were supposed to be paid but was not, there is a 44% tax for that sum if it is X months old, or older. I remember being explained it previously but I can not remember the age in which these payments stop being taxed this high and start getting taxed at current tax card.
Thanks
No idea sorry, but I’m sure its explained on the Skatteetaten website
Even Norwegians will retire at some point. Is retirement income taxed? If so, at what effective rate?
Awesome and informative post!
Hello David,
I have a friend who work in Norway 3 weeks ago he was detained from going home because he ows taxes and they requested a tax credit certificate grom him. He was on a contract. His account is frozen right now. I will appreciate any advice at this time. Thanks
Hi, I can’t possibly give any advice on such a matter, sorry. I would suggest contacting a lawyer.
Hi! Can you please advise which would be the tax treatment for a second (full time) and a third (part time-on call) job. I mention that my first job is also part time – on call. Thank you!
Hi,
What happens to the national insurance, if that a employee leaves Norway after working short period of time.
Thanks
You should contact Skatteetaten and/or NAV to ask them as this depends totally on your personal circumstances.
Hi as a Brit new to working in Norway I have secured a part time job, but am just about to start working a second part time role too, will the second job be taxed at a higher rate?
Thank you!
If your overall income goes up then you will be taxed higher overall, yes. It’s up to you to report the change in expected income to get a new “tax card” that your employers can use to deduct the correct amount. You can do this on the Skatteetaten website. If you don’t, you’ll get a big tax bill at tax return time next time year 🙂
Hi
I am not able to submit RF1209 which allows an exemption from paying 8.2% social secuity tax. Hence paying full tax this year.
Can I get a refund of the Social Security tax next year or is it lost forever?
Hi David, thank you for this simple, but complete, explanation.
I was doing the math using your instructions and I found the numbers a bit different when using the simulator from the state site that Edvard posted.
Nevertheless, I am curious to find several sites that state much higher taxes on Norway, like 10% higher, to values that are normal arround 40%, or higher, for average wages.
In reality taxes are lower than stated in the documents. But this is due to deductions that are on personal level depending on you family finance, loans, capital, etc.
Practically on my pay slip is always written 44% but I never paid more than 37%.
Does anybody know what tax card 7100 is?
Several of my work colleagues are all on similar packages and are all on tax card 7150 however when I view my tax card I am on card 7100. Any idea what the difference is between tax cards 7100 and 7150 is? The obvious answer is a pay more tax, but with similar packages why would this be the case? Am I paying too much taxes or are my colleagues paying too little.
It’s impossible for anyone to tell you that except the tax authority. But the tax card isn’t how much tax you pay – it’s how much you get deducted from your pay. The final settlement then gives you a refund or an invoice depending on whether you have overpaid or underpaid. If you think you’re already overpaying, you can always request a new tax card by using the form on Skatteetaten, but you’ll only be issued one if your circumstances have changed (e.g. expected salary, new deductions etc)
Hi. You can check the tax level for the 2 tax cards and see which one would be in your advantage. Then check if possible the situations of your colleagues. Married/ wife got a job or not/children/ loans/ debts/ capital, etc. Unfortunattely I don’t know where you could find the way Skat will asign a certain tax card to you but maybe some of the readers here, have more info.
Very informative explanations, thank you very much!
Do you know if there is a difference in tax paid on income if you are self-employed? I seem to have paid a lot more than the percentages you mention in the examples.
Hi, yes there are some differences, most notably self-employed people pay a higher social security. That’s because in ‘regular’ employment, the employee only pays part of the social security, the rest is covered by the employer. I’m working on a new article about tax for self-employed people at the moment.
Good afternoon David. Can i ask you regarding tax for 2020. My income was total (gross) approx. 510 000 NOK. I have paid – 31.74% in tax (for 2020) but later got extra tax – in total 47%.
Can it be? I’m on 7150 table. I think its kind of mistake.
Thanks for you help.
I can’t help with personal tax matters, I’m a writer, not an accountant. Check your tax assessment – all the detail is on there.
Are the taxes you cited the only taxes or are the state/provincial and local taxes separate from federal taxes?
There are no state taxes in Norway because there are no states – it isn’t a federal system. Some of the money raised through income taxes will go to county/local municipalities but that is all done “behind the scenes”
Is the National Insurance Contributuon a part of the income tax in Norway? On Tax Return form this contribution is shown in Income Tax section. It’s also added to withholding tax ammount.