Last Updated: April 2026
Norway's income tax system is distinctive in its two-track structure: a flat base rate applied universally, topped by a progressive bracket tax. Add a generous but expensive social security system and Norway's unique wealth tax, and the total mandatory deductions for Norwegian residents are among the highest in Europe — offset by exceptional public services funded largely by the Government Pension Fund (oil fund).
This guide covers Norway's full income tax structure, trinnskatt brackets, the PAYE scheme for new arrivals, the wealth tax, social insurance contributions, and filing requirements for both Norwegian residents and expats.
According to Skatteetaten, Norway applies two parallel income taxes:
All taxable income (alminnelig inntekt — 'ordinary income') is subject to a flat 22% tax. Alminnelig inntekt includes employment income, business income, investment income (dividends, interest, capital gains), and pension income, minus standard deductions (personal allowance personfradrag ~NOK 88,250; employment deduction minstefradrag up to NOK 104,450).
The trinnskatt applies on top of the 22% fellesskatt, calculated on gross personal income (personinntekt — employment and self-employment income before most deductions):
| Income (NOK) | Trinnskatt Rate | Combined with Fellesskatt |
|---|---|---|
| Under 208,050 | 0% | 22% |
| 208,050–292,850 | 1.7% | 23.7% |
| 292,851–670,000 | 4.0% | 26% |
| 670,001–937,900 | 13.6% | 35.6% |
| 937,901–1,350,000 | 16.6% | 38.6% |
| Above 1,350,000 | 17.6% | 39.6% |
Adding 7.8% trygdeavgift (national insurance): effective top marginal rate on employment income = 47.4%.
Dividends and gains from Norwegian shares are subject to additional tax through the shareholder model (aksjonærmodellen). The basic 22% applies, but there is an uplift rate (skjermingsfradrag — shield deduction) to avoid double-taxation of retained earnings. Effective combined corporate + personal tax rate on distributed Norwegian company profits: approximately 37.84%.
Norway's formuesskatt is an annual tax on net wealth above a threshold — one of only a handful of OECD countries to still levy this tax (alongside Switzerland and Spain). It is a major consideration for property owners and investors moving to Norway.
All worldwide net assets of Norwegian tax residents: primary residence (valued at 25% of market value for owner-occupied); secondary properties (full market value); bank accounts (full); listed shares and funds (full market value); unlisted company shares (often 80% of tax value); boats, vehicles; pension savings. Minus all outstanding debt.
For a British or American expat with £500,000 in property and investments moving to Norway: wealth tax approximately 1.0% × £500,000 = £5,000/year every year on top of income tax. Over a 10-year stay, this is £50,000 in wealth tax alone. High-net-worth individuals regularly factor formuesskatt into Norway residency decisions.
Norway operates a simplified PAYE (Pay As You Earn) scheme (kildeskattordningen) for foreign workers in their first years. Under PAYE:
For lower earners (below approximately NOK 600,000), the standard system with deductions often produces a lower effective rate than 25% PAYE. For higher earners with few deductions, PAYE may be simpler and comparable. Example: at NOK 500,000 income, standard system (22% fellesskatt + 4% trinnskatt + 7.8% NI minus deductions) effective rate ≈ 28–30% — higher than PAYE's 25%. At NOK 700,000, standard rate ≈ 32–34% — higher than 25% PAYE. The PAYE scheme is generally favourable for most income levels during the first two years.
All Norwegian residents (and workers) are enrolled in the National Insurance Scheme (Folketrygden). Contributions:
Contributions provide entitlement to: free healthcare at public hospitals and GPs; unemployment benefits (dagpenger) after 12 months of contributions; National Insurance pension; parental leave at 100% of salary (up to NOK 672,000) for 49 weeks. The Folketrygden benefits are among the most comprehensive in the world — the trygdeavgift represents genuine value, not simply a tax.
Norway's tax residency rules operate on multiple timescales:
You become a Norwegian tax resident if you spend 183 days in Norway within any 12-month period (not calendar year — rolling 12 months). From that point, Norway taxes worldwide income.
Spending 270 days in Norway within any 36-month period creates full residency status with no ability to claim treaty non-residency without strong evidence of an established primary home elsewhere.
Norwegian tax residency does not end automatically when you leave. You must demonstrate: established permanent residence in another country; no primary home in Norway; no Norwegian family ties maintained. Norway maintains a 3-year shadow residency — if you move to a low-tax country (defined as a country taxing at less than 2/3 of Norwegian rates), Norwegian residency continues for 3 years unless you can prove genuine economic ties to the new country. This is designed to prevent tax emigration to low-tax jurisdictions.
Norway's tax system is highly automated — Skatteetaten pre-fills returns using employer and bank data:
PAYE scheme participants receive an annual statement and do not need to file. Self-employed must file comprehensive income statements by 31 May.
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Open NOK & GBP/USD Accounts →Norway's effective top marginal rate on employment income is approximately 47.4%: 22% fellesskatt (base tax) + 17.6% trinnskatt (at income above NOK 1,350,000) + 7.8% trygdeavgift (national insurance) = 47.4%. This is one of the highest marginal rates in the OECD for employment income. However, Norway's standard deductions and personal allowances mean the effective average rate at typical incomes (NOK 600,000–800,000) is approximately 27–32% — lower than the marginal rate suggests.
Yes — Norway's formuesskatt taxes net worldwide assets of Norwegian residents. The combined rate is 1.0% (municipal + national) on net assets between NOK 1.7M and NOK 20M; 1.3% above NOK 20M. Primary residences are valued at 25% of market value (reducing the effective wealth tax for homeowners). Bank accounts, investments, and secondary properties are taxed at full market value. Debt is deducted. The threshold is doubled for married couples. Most homeowners in Oslo with a mortgage will have net assets within the taxable range.
Norway's PAYE (kildeskattordningen) is a simplified flat 25% deduction covering all income tax and national insurance for qualifying foreign workers. Available for the first 2 income years in Norway. Foreign workers who were not Norwegian tax residents in the prior 3 years generally qualify. The advantage: no annual return required, simple administration. The trade-off: no deductions (mortgage interest, home office, etc.) can be claimed. For most income levels, 25% PAYE is a favourable rate compared to the standard system, but high earners with significant deductions may prefer standard assessment.
Dividends and capital gains from Norwegian shares are taxed under the shareholder model (aksjonærmodellen): the 22% base tax applies, but a shield deduction (skjermingsfradrag) is applied to prevent double-taxation of company profits already taxed at the corporate level. The effective combined tax rate on dividends from Norwegian companies is approximately 37.84% (22% corporate + adjustment × 22% personal). Foreign dividends received by Norwegian residents are subject to 22% base tax. Capital gains on securities are taxed at 22% (base rate). Gains on Norwegian primary residences (lived in for 12+ months) are exempt from capital gains tax.
Yes to both. Norway has DTAs with most major countries. The Norway-US DTA coordinates taxation for Americans in Norway: US citizens must still file US returns and can use FEIE/FTC mechanisms. Norway-US totalization agreement prevents dual social insurance contributions. The Norway-UK DTA coordinates UK and Norwegian tax obligations for British residents in Norway and Norwegians in the UK. Post-Brexit, UK nationals are no longer EEA nationals and need work permits for Norwegian employment, but the DTA provisions are unaffected by Brexit.