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. The base rate (fellesskatt) of income tax in Norway is 22%. Income tax is split into a base rate and a step tax, to allow for progressive taxation. Remember, these so-called deductions are simply a way of working out your taxable income. Most employees also receive a personal deduction (personfradrag), which is 51,300kr for most people. These vary. However, everyone receives a standard deduction (minstefradrag) equal to 45% of your gross employment income, up to a maximum of 104,450kr. Tax basis: This basis for taxation is your personal income minus any deductions that you are entitled to. To fully understand your situation, you need to calculate these two figures: Income tax is split into various elements, and the basis for these taxes is different. This helps prevent a big tax bill at tax return time. If you know you’ll be earning more or less than estimated during the year, you are able to make changes to these figures. If you pay too much or little, the difference is settled on the personal tax return the following year. Read more: Norway Import Duty Changes for 2020įrom this, the monthly deductions are calculated. The tax-year runs January-December and your estimated annual tax bill is worked out at the beginning of the year. Income tax is deducted by the employer on behalf of the Norwegian state. There's plenty of online calculators to help you along the way, too. However, it's possible to work out your expected tax bill by doing a few calculations.
That means the more you earn, the more tax you pay on a percentage basis. That’s because like many other countries, Norway operates a progressive system for income tax. Without knowing their salary and a bunch of other personal information, it’s a difficult question to answer. Many people contact me asking how much tax they should be paying. 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.
Find out how much tax you can expect to pay from your salary this year in Norway.
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