Income Tax Rates

Norwegian income tax is progressive and consists of two main components: the general income tax (alminnelig inntektsskatt) and the progressive step tax (trinnskatt).

• General income tax: remains 22% for all annual income levels in 2024.
• Progressive step tax (Trinnskatt) 2024:
  • Up to 199,600 NOK – 0% (tax-free income)
  • 199,601–298,200 NOK – 1.7%
  • 298,201–797,300 NOK – 4%
  • 797,301–1,035,500 NOK – 13.4%
  • Over 1,035,500 NOK – 16.4%

The higher the income, the higher the tax rate, but the main 22% rate applies to all taxable income.

Social Security Contributions (Trygdeavgift)

• Employee contribution: 8.2% of gross salary.
• Employer contribution: between 5.1% and 14.1%, depending on the region.

Standard Tax Deductions

• Tax-free allowance (Personfradrag): increased to 63,800 NOK in 2024. This amount is tax-free for all taxpayers.
• Social contribution deduction: residents benefit from social security deductions that reduce the overall tax burden.

Additional Deductions and Credits

Norway’s tax system allows various deductions and credits – for example, childcare costs, housing loan interest payments, or higher education expenses.

Family and Parental Benefits

• Child benefit (Barnetrygd): 1,676 NOK per month for each child under 18 years old.
• Parental tax deduction (Foreldrefradrag): families can claim tax deductions for childcare or employing nannies.

Double Taxation Relief

Norway has agreements with many countries to avoid double taxation, meaning foreign workers can receive tax relief if they are also taxed in another country.

Summary

In 2024, Norway maintains a progressive income tax system with multiple brackets. Higher income levels are taxed at higher rates, while the increased tax-free allowance protects part of the income. Social security contributions and family-related deductions remain key elements of the system.

Source: Norwegian Tax Administration (Skatteetaten)

Published: September 9, 2024 | Updated information on income tax, social contributions and family benefits in Norway.

Income Tax Rates

In Norway, income tax is progressive and consists of two main components: the general income tax (alminnelig inntektsskatt) and the progressive step tax (trinnskatt).

• General income tax: 22% for all annual income levels (unchanged for 2024).
• Progressive step tax (Trinnskatt) 2024:
  • Up to 199,600 NOK – 0% (tax-free income).
  • 199,601–298,200 NOK – 1.7%
  • 298,201–797,300 NOK – 4%
  • 797,301–1,035,500 NOK – 13.4%
  • Over 1,035,500 NOK – 16.4%

This means higher income earners pay a larger percentage, but the basic 22% rate applies to all taxable income.

Social Security Contributions (Trygdeavgift)

• Employee contribution: 8.2% of gross salary.
• Employer contribution: Between 5.1% and 14.1%, depending on the geographical region.

Standard Tax Deductions

• Personal allowance (Personfradrag): Increased to 63,800 NOK in 2024. This is a tax-free amount applied to all taxpayers.
• Social insurance allowance: Partial deductions available to reduce the overall tax burden.

Additional Deductions and Benefits

Norway’s tax system allows several deductions and credits, such as for childcare expenses, interest payments on loans, or higher education costs.

Family and Parental Benefits

• Child benefit (Barnetrygd): 1,676 NOK per month for each child under 18.
• Parental deduction (Foreldrefradrag): Families can claim tax deductions for childcare expenses or hiring childcare providers.

Double Taxation Relief

Norway has agreements with many countries to avoid double taxation, meaning foreign workers may receive tax relief if they are also taxed abroad.

Summary

In 2024, Norway maintains a progressive income tax system with multiple brackets. Higher income levels are taxed at higher rates, while social security contributions and various family deductions remain in place. The personal allowance increase helps protect part of the income from taxation.

Source: Norwegian Tax Administration (Skatteetaten)