Forside

Prop. 1 LS (2025–2026)

Chapter 1

1 Main tax policy features

1.1 The Government's tax policy objectives

The Government pursues a policy to safeguard the country, welfare and people's economy. In addition to financing public goods and welfare schemes, tax policy shall contribute to fair distribution and facilitate growth, value creation, good health and high environmental standard.

The Government's tax promise implies that total taxes on Norwegian private individuals and businesses will remain at the same level as today, and that the corporate income tax rate will not be increased. The increase in climate taxes continues, and the Government will take steps to ensure that the climate transition is fair. This means that increased climate taxes will be returned to taxpayers through broad reductions in other taxes. Similarly, closing tax loopholes or tightening certain taxes provides scope for reducing other taxes within the tax promise.

A priority in the Government's tax policy in the coming parliamentary period will be to present a white paper on a comprehensive tax reform, cf. petition resolutions in connection with the Storting's consideration of the 2024 white paper on Long-term Perspectives. A tax reform should include tax exchanges that can generate gains for the Norwegian economy. The petition resolution and the public debate on the tax system in recent years indicate that taxation of businesses and owners will be central to such reform efforts. At the same time, major changes in the tax system must be viewed as a whole for the system to be logically coherent and for different considerations to be properly balanced. This applies to efficiency, distribution, predictability, simplicity, a robust tax base and competitiveness.

The purpose of the white paper on a comprehensive tax reform will be to facilitate agreement on important elements of the tax system across political divides, which can be incorporated into subsequent annual budgets. That way, reasonable predictability can be achieved about the tax system across changing governments. To obtain input to the Government's work on a white paper and prepare the ground for a broad consensus, the Government will take the initiative to establish a broad-based tax commission. The aim is to present a white paper on a comprehensive tax reform in the course of 2027.

Irrespective of the work on a comprehensive tax reform, there is an ongoing need to maintain the tax system in order to maintain efficient and fair tax collection at low economic cost.

The Government's proposed tax programme for 2026 is partly based on simplifying and streamlining the tax system, closing tax loopholes and ensuring that the system is well adapted to changes in other regulations and structural changes. This will benefit both taxpayers and tax administration, while safeguarding the tax base.

1.2 Main features of the tax programme for 2026

In line with the tax promise and within a revenue-neutral tax programme, the Government proposes broad reductions that contribute to security for people's finances.

Income tax is reduced, among other things, through increased personal allowances and reduced National Insurance contributions on wages, benefits and self-employment income. This provides broad relief while maintaining the redistributive properties of the tax system. The proposal also makes it more profitable to work, as individuals are left with a little more after tax for each additional krone they earn.

The Government proposes to implement a randomised controlled trial with an in-work tax allowance for young people. The Government believes that there is a need for more knowledge about how a work allowance, and financial incentives in general, affect labour supply and labour force participation. A work allowance differs from general tax reliefs in that it is not granted on social security income. If social security recipients are to be excluded from broad tax reliefs, it must be justified on the grounds that this is necessary to get more people into work and fewer on benefits. The pilot scheme will provide knowledge about this.

The share of electric cars is now 95 per cent. This means that the goal of all new passenger cars being electric by 2025 has effectively been achieved. In the government's view, the time is ripe to phase out the benefits of electric cars in the VAT system. We should not have a system that subsidises the purchase of passenger cars rather than other consumption. In 2026, it is proposed to reduce the threshold for VAT on purchases of electric cars to NOK 300,000, and it is announced that the VAT benefits from the purchase of a new electric car will be completely removed from 2027. At the same time, it is proposed to adjust the registration tax on cars so that the system is simplified and the incentives to choose an electric car are safeguarded.

To reduce electricity costs for both households and businesses, the electricity tax is reduced to 4.18 øre per kWh throughout the year.

Other suggestions affecting individuals and households:

The Finnmark allowance is increased by 50 per cent to NOK 45,000.

The trade union allowance is increased to NOK 8,700, with the aim of increasing it up to NOK 10,000 during this parliamentary period.

The parental allowance is reduced to NOK 15,000 for the first child and NOK 10,000 for children beyond that, in light of reduced prices in kindergartens and after-school care.

A tax exemption allowance of NOK 100,000 will be introduced for young people from 13 to 19 years in Svalbard.

The limit for the maximum deduction for individual pension savings is increased to NOK 25,000.

Tax-free net income under the tax limitation rule is increased by NOK 10,000.

A permanent scheme for deferred payment of wealth tax is introduced.

The threshold for wealth tax is increased from NOK 1.76 million to NOK 1.90 million.

The threshold for a high valuation of primary dwellings in the wealth tax is kept in nominal terms at NOK 10 million.

The model that values housing in the wealth tax is improved.

Some income tax thresholds are kept unchanged in nominal terms.

The Government proposes that climate taxes in 2026 follow the linear increase to NOK 2,400 per tonne of CO2 at 2025 prices in 2030. After 2030, the Government proposes to continue the linear escalation, so that the tax will be NOK 3,400 at 2025 prices in 2035.

Other proposed changes to climate and environmental taxes:

A general exemption from the CO2 tax is introduced for mineral products for emissions subject to EU’s Emission Trading System (ETS) outside the Effort Sharing Regulation

A new rate is introduced in the CO2 tax for mineral products for fishing in near and distant waters.

The rate for domestic shipping subject to ETS is increased to NOK 799 per tonne of CO2.

The reduced rate for international shipping will be discontinued.

The rate for the greenhouse industry is increased to 43.3 per cent of the general CO2 tax rate.

An exemption is introduced for cleaning of sulphur hexafluoride (SF6).

The road usage tax on diesel is increased by NOK 0.25 per litre over the rise in prices.

The Government proposes that several obvious loopholes in the tax system be closed. Among other things, it is proposed to close the possibility for financial institutions with operations abroad to obtain double interest deductions. This proposal follows up a decision by the Supreme Court on the distribution of interest deductions between businesses in Norway and abroad. From the day the budget is presented, a tax loophole in the real estate sector will be closed where capital gains taxation can be avoided through targeted tax planning. Loopholes in the VAT rules for international trade in services are also being closed. International enterprises can currently achieve more favourable tax treatment than national enterprises.

Other proposals affecting business activities:

It is proposed to exempt mutual funds from ordinary tax on interest income, income from shares and income from financial instruments. This avoids, among other things, double taxation of interest income in the funds.

The minimum rate for recognition of income in the agricultural account is lowered from 85 per cent to 80 per cent.

Light electric vans are exempted from traffic insurance tax.

Sectoral taxes under the Norwegian Communications Authority, the Norwegian Water Resources and Energy Directorate and Finanstilsynet are increased to finance investment in these sectors.

The Government is circulating a number of proposals for consultation:

reduce the threshold of the resource rent tax and the natural resource tax on hydropower, from 10,000 kVA to 1,500 kVA

clarify and simplify the rules on tax-paid up capital in companies

more correct delimitation of the right to deduct the production tax from the resource rent tax on aquaculture.

1.3 Revenue effects of the proposed tax changes

Table 1.1 presents the estimated revenue effects in 2026 of the Government's proposed tax changes for 2026. The difference between accrued and booked effects of tax changes is explained in Box 1.1. In line with the Government's tax promise, the net accrued tax effects of the Government's proposal are estimated at zero in 2026.

Table 1.1 Estimated revenue effects in 2026 of the Government's proposed tax programme for 2026. Negative numbers signify easing. The estimates have been calculated in relation to the benchmark system for 2026. NOK million

2026

Accrued

Booked

Personal incometax 

-4,159

-4,301

Increase the personal allowance to NOK 114,210 

-1,315

-1,315

Reduce National Insurance contributions on wages/benefits and self-employment income 

-2,345

-2,345

Introduce a pilot scheme with work allowances for young people 

-500

-500

Increase the limit on individual retirement savings 

-150

-150

Reduce the parental allowance to NOK 15,000/10,000 

190

50

Adjust the tax limitation rule1 

-9

-9

Increase the Finnmark allowance from NOK 30,000 to NOK 45,000 

-175

-175

Increase the trade union deduction from NOK 8,250 to NOK 8,700 

-29

-29

Introduce an allowance for young people in Svalbard 

-1

-1

Nominal continuation, interaction effects, etc. 

175

173

Wealthtax 

0

0

Increase the threshold for wealth tax from NOK 1.76 million to NOK 1.90 million 

-525

-525

Improve the model for valuing housing 

435

435

Introduce a permanent scheme for deferred payment of wealth tax 

-10

-10

Maintain the threshold for primary dwellings of more than NOK 10 million nominal 

100

100

Business taxation 

1,440

-140

Reform taxation of mutual funds 

-570

0

Follow up the Supreme Court's decision on interest deductions 

2,000

0

Closing tax loopholes in the real estate sector2 

200

50

Reduce the recognition of income in the agricultural accounts scheme from 85 per cent to 80 per cent. 

-190

-190

Climate and environmentaltaxes 

1,608

1,448

Increase taxes on non-ETS emissions 

2,200

2,000

Compensate public carriers 

-120

-120

Introduce a general exemption for businesses subject to ETS 

-526

-482

Increase the rate for domestic shipping subject to ETS 

37

34

Increase the rate for the greenhouse industry 

13

12

Adjust the rate for fishing and trapping in distant waters 

6

6

Introduce an exemption when cleaning SF6 

-2

-2

Abolish the reduced rate for international shipping 

0

0

Cartaxes 

680

640

Simplify the one-time registration tax 

200

180

Exempt light electric vans from traffic insurance tax 

-20

-10

Increase the road usage tax on diesel (mineral oils and biodiesel) 

500

470

Otherexciseduties 

-4,000

-2,330

Introduce a common rate of 4.18 øre per kWh in the electricity tax 

-4,000

-2,330

Value addedtax 

4,400

3,770

Reduce the threshold for electric cars to NOK 300,000 

4,000

3,500

Closing gaps in VAT on cross-border services from

July 1, 2026 

400

270

Sectoraltaxes 

31

31

Increase the sectoral tax under the Norwegian Communications Authority 

8

8

Increase the sectoral tax under the Norwegian Water Resources and Energy Directorate 

7

7

Increase the sectoral tax under the Financial Supervisory Authority of Norway 

17

17

Proposednewtaxchanges in 2026  

0

-882

¹ Accrued revenue effect in 2025 is NOK -9 million. This is carried on in 2026.

² Accrued revenue effects in 2025 are NOK 50 million. This is carried on in 2026.

Source: Ministry of Finance.

Some of the government's proposals will have an impact on taxpayers beyond 2026. Table 1.2 shows the revenue effects in the years 2027 and 2028 for those of the Government's proposals that have accrued effect beyond 2026. The Government's tax promise means that the accrued austerity measures that will be implemented in 2027 and 2028 as a result of the proposals in the 2026 budget will be matched by at least corresponding tax and fee reductions in the proposals for the 2027 and 2028 budgets.

Table 1.2 Accrued effects in subsequent fiscal years of proposed tax changes in the 2026 budget. NOK million

2027

2028

Introduce a permanent scheme for deferred payment of wealth tax1 

-

10

Closing tax loopholes in the real estate sector 

700

-

Reduce the recognition of income int the agricultural accounts scheme from 85 per cent to 80 per cent² 

120

60

Exempt light electric vans from traffic insurance tax 

-40

0

Reduce the threshold for electric cars to NOK 300,000 

500

500

Closing gaps in VAT on cross-border services from 1 July 2026 

400

-

Increase the sectoral tax under the Norwegian Communications Authority 

10

-

Total accruedeffectsbeyondthebudgetyear 

1,690

570

¹ Accrues in 2030, but is technically recorded in 2028.

² The long-term effect is NOK -10 million, discounted net present value.

Source: Ministry of Finance.

Box 1.1 The relationship between accrued and booked effect of a tax change

The accruedeffect of a tax change expresses the change in the taxpayer's payment obligation in a particular income year. This is the actual impact of a proposal or decision, which is most important from the taxpayers' perspective and influences their decisions and adaptation. It is the accrued effect that is relevant in an overview of overall tax changes over a period and for the Government's tax promise.

However, the central government budget is settled in book values. Booked proceeds describe when the tax change is entered into the government's account. The relationship between accrued and booked effect in each year depends on payment dates, etc., and varies between taxes and duties. Normally, the following applies:

Income tax changes for individuals are booked in full in the budget year.

Tax changes for companies are booked in full in the year following the budget year.

For changes in employer's National Insurance contributions and value added tax, five out of six payment dates are recorded in the budget year.

For changes in the electricity tax, three out of four payment dates are recorded in the budget year.

For changes in other excise duties, eleven out of twelve payment dates are recorded in the budget year.

The fact that income tax for individuals is fully booked in the budget year is new from 1 January 2026. In connection with the consideration of Prop. 91 L (2024–2025) Endringer i skatteforvaltningsloven og skattebetalingsloven mv. The Storting decided to discontinue the tax deduction account scheme with effect from 1 January 2026, see Recommendation 469 L (2024–2025) and Legislative Decision 92–101 (2024–2025). This means that from 2026, virtually all income tax from individuals will enter the income year, compared with five out of six payment dates previously.

Table 1.3 presents estimated booked tax revenues for 2026, as well as estimates for 2025 and accounting figures for 2024, broken down by chapter and item.

Table 1.3 Booked tax revenues broken down by chapter and item. NOK million

Budget estimate 2025

Chapter

Item

Designation

Accounts 2024

Balanced budget

Projections NB26

Proposal 2026

5501

Taxes on wealth and income 

70

Bracket tax, wealth tax, etc. from personal tax- payers 

125,611

136,081

133,300

157,737

72

Community tax, etc., from personal tax payers 

156,048

151,373

157,300

206,453

74

Corporate income taxes, etc., from non-personal taxpayers outside the petroleum sector 

142,918

129,100

123,400

129,450

76

Withholding tax, dividends 

13,375

13,250

14,000

14,100

77

Withholding tax, interest payments 

15

25

20

20

78

Withholding tax, royalties 

0

0

1

1

79

Withholding tax, rental income 

17

15

20

20

5502

Financial activity tax

70

Tax on payrolls 

2,809

2,704

3,000

3,100

71

Tax on profits 

3,737

2,400

3,700

3,900

5506

70

Tax on inheritance and gifts 

30

0

40

0

5507

Tax on petroleum production

71

Ordinary tax on wealth and income 

132,693

119,310

121,100

93,300

72

Special tax on petroleum income 

278,774

259,215

252,800

198,200

74

Area fee, etc. 

1,180

1,300

1,500

1,600

5508

70

Tax on CO2 emissions in petroleum activities on the continental shelf 

7,695

9,155

8,400

9,400

5509

70

Tax on NOX emissions in the petroleum sector on the continental shelf 

-3

1

1

1

5511

Customs revenues

70

Customs duties 

3,622

3,550

3,500

3,300

71

Auction revenues from tariff quotas 

313

300

315

300

5521

70

Value added tax 

387,935

409,258

403,000

420,970

5526

70

Tax on alcohol 

16,446

16,800

16,300

16,300

5531

70

Tax on tobacco products, etc. 

7,672

7,600

7,700

7,700

5536

Tax on motor vehicles, etc.

71

One-time fee 

7,982

6,589

7,200

7,180

72

Traffic insurance tax 

10,591

10,190

9,950

9,290

73

Annual weight-based tax 

281

290

290

300

75

Re-registration fee 

1,757

1,850

1,800

1,900

5538

Road usage tax on fuel

70

Road usage tax on petrol 

3,573

3,280

3,100

3,000

71

Road usage tax on auto diesel 

6,768

6,520

6,300

6,570

72

Road usage tax on natural gas and LPG 

3

4

3

3

5540

70

Tax on power production 

-174

0

0

0

5541

70

Electricity tax 

9,719

10,803

9,700

4,770

5542

Tax on mineral oils, etc.

70

Base tax on mineral oils, etc. 

0

0

0

0

71

Tax on lubricating oils, etc. 

117

120

120

125

5543

Environmental tax on mineral products, etc.

70

CO2 tax on mineral products 

15,954

18,437

18,100

19,538

71

Sulphur tax 

3

10

2

2

5546

70

Waste incineration tax 

598

695

690

690

5547

Tax on hazardous chemicals

70

Trichloroethene (TRI) 

0

0

0

0

71

Tetrachloroethene (PER) 

0

-

-

-

5548

Environmental tax on certain greenhouse gases

70

Tax on HFCs and PFCs 

405

355

500

540

71

Tax on SF6 

83

60

150

170

5549

70

Tax on NOX 

36

30

45

45

5550

70

Environmental tax on pesticides 

50

65

65

65

5551

Taxes related to mineral operations

70

Tax on subsea limestone extraction, etc. 

3

1

1

1

71

Annual tax related to minerals 

18

20

21

23

5552

70

Tax on farmed fish 

1,339

1,350

1,550

1,510

5553

70

Tax on wild marine resources 

132

130

130

130

5554

70

Tax on wind power 

324

395

355

385

5557

70

Tax on sugar, etc. 

212

200

210

220

5559

Tax on beverage packaging

70

Base tax on disposable packaging 

2,837

3,000

3,000

3,100

71

Environmental tax on cardboard 

59

60

60

65

72

Environmental tax on plastics 

48

55

50

50

73

Environmental tax on metals 

9

10

15

15

74

Environmental tax on glass 

7

5

5

5

5561

70

Air passenger tax 

2,226

1,850

1,850

1,900

5565

70

Stamp duty 

12,565

12,200

14,000

15,500

Sectoral taxes1 

4,797

4,711

4,922

5,173

5583

70

Frequency and number tax 

407

675

675

430

5584

70

Abolished taxes, and interest and coercive fines on excise duties 

54

0

0

0

5700

National Insurance Scheme revenues

71

National Insurance contributions 

185,986

197,170

196,400

231,189

72

Employer's National Insurance contributions 

268,526

269,420

274,500

283,011

Total 

1,818,183

1,811,986

1,805,156

1,862,746

¹ The changes in sectoral taxes are shown in Table 1.1 and Chapter 15.

Source: Ministry of Finance.

Table 1.4 shows booked effects of proposed new rule changes in 2026, broken down by chapter and item.

Table 1.4 Estimated booked revenue effects of the tax programme for 2026, broken down by chapter and item. Calculated in relation to the benchmark system for 2026. NOK million

Chap.

Item

Designation

Change

5501

Taxes on wealth and income1

70

Step tax and wealth tax, etc. 

-182

72

Community tax, etc., from personal taxpayers 

-1,959

74

Corporate income taxes, etc., from non-personal taxpayers outside the petroleum sector 

50

76

Withholding tax on dividends 

0

77

Withholding tax on interest payments 

0

78

Withholding tax on royalty payments 

0

79

Withholding tax on rent payments for certain physical assets 

0

5502

Financial activity tax

70

Tax on payrolls 

0

71

Tax on profits 

0

5506

70

Tax on inheritance and gifts 

0

5507

Tax on petroleum production

71

Ordinary tax on wealth and income 

0

72

Special tax on petroleum income 

0

74

Area fee, etc. 

0

5508

70

Tax on CO2 emissions in the petroleum sector on the continental shelf 

0

5509

70

Tax on NOX emissions in the petroleum sector on the continental shelf 

0

5511

Customs revenues

70

Customs duties 

0

71

Auction revenues from tariff quotas 

0

5521

70

Value added tax 

3,770

5526

70

Tax on alcohol 

0

5531

70

Tax on tobacco products, etc. 

0

5536

Tax on motor vehicles, etc.

71

One-time fee 

180

72

Traffic insurance tax 

-10

73

Annual weight-based tax 

0

75

Re-registration fee 

0

5538

Road usage tax on fuel

70

Road usage tax on petrol 

0

71

Road usage tax on auto diesel 

470

72

Road usage tax on natural gas and LPG 

0

5540

70

Tax on power production 

0

5541

70

Electricity tax 

-2,330

5542

Tax on mineral oils, etc.

70

Base tax on mineral oils and biodiesel, etc. 

0

71

Tax on lubricating oils, etc. 

0

5543

Environmental tax on mineral products, etc.

70

CO2 tax 

1,488

71

Sulphur tax 

0

5546

70

Waste incineration tax 

0

5547

Tax on hazardous chemicals

70

Trichloroethene (TRI) 

0

71

Tetrachloroethene (PER) 

0

5548

70

Tax on hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) 

60

71

Tax on SF6 

20

5549

70

Tax on NOX 

0

5550

70

Environmental tax on pesticides 

0

5551

Taxes relating to mineral operations

70

Tax on subsea limestone extraction, etc. 

0

71

Annual tax related to minerals 

0

5552

70

Tax on farmed fish 

0

5553

70

Tax on wild marine resources 

0

5554

70

Tax on wind power 

0

5557

70

Tax on sugar, etc. 

0

5559

Tax on beverage packaging

70

Base tax on disposable packaging 

0

71

Environmental tax on cardboard 

0

72

Environmental tax on plastics 

0

73

Environmental tax on metals 

0

74

Environmental tax on glass 

0

5561

70

Air passenger tax 

0

5565

70

Stamp duty 

0

Sectoral taxes2 

31

5583

70

Frequency and number fee. 

0

5700

National Insurance Scheme revenues

71

National Insurance contributions 

-2,361

72

Employer's National Insurance contributions 

11

¹ Effects apply to the central and local government sectors. Reference is made to Section 3.3 for a discussion of municipal tax revenues.

² The changes in sectoral taxes are shown in Table 1.1 and Chapter 15.

Source: Ministry of Finance.

1.4 Social and geographical profile of the tax programme

Social distributional effects

The main objective of most taxes is to generate revenue for central government. In addition, some taxes have a particular objective of redistributing taxes through the tax system. The tax on earned income and taxable transfers is therefore progressive with a personal allowance and with a bracket tax where the tax rate increases with the income in five brackets. The wealth tax also has a distributional policy rationale that contributes to overall progressivity. The division of labour between taxes that have an explicit task of redistributing and other taxes helps to ensure that the tax system can be redistributive without unnecessarily compromising efficient use of resources (see Chapter 2).

All taxes affect the distribution of income, wealth and consumption. For taxes that do not have an explicit redistribution purpose, the relationships will often be more complex and unclear. For example, the impact of tax changes may vary depending on the proportion of income typically spent on specific goods or services by households with low incomes, relative to households with higher incomes. The extent to which tax changes are passed on to prices is determined by market conditions and will influence the extent to which, for example, a tax reduction benefits households. Who bears a tax change in economic terms is also relevant for corporate income tax. Taxes on companies can translate into both reduced wages and profits. The distribution of the tax burden between owners and wage earners determines the distributional effects of the tax.

The various tax changes proposed by the Government should be viewed in conjunction with each other to obtain a picture of the overall distributional effects. At the same time, it is difficult to quantify the effects of all the proposals. This may be due to a lack of data or because too many uncertain assumptions are required to adequately attribute the effects of a proposal to different households.

The income and wealth tax has explicit redistribution purposes, and for these types of taxes there is a good data and model basis for analysing how changes in the main rules affect different income or wealth groups in the short term. Income tax relief is one of the government's top priorities. To measure the distributional effects of these reductions, the proposals are compared with the 2025 rules applied to 2026 (the benchmark system) (Table 1.5). In the table, taxpayers are broken down by gross income and divided into ten equally sized groups. The estimates include changes in rates, allowances and thresholds in personal income taxation. The isolated, net income tax reduction resulting from the changes included in the calculations is estimated at about NOK 3.9 billion.

Table 1.5 shows that the proposal provides broad income tax relief, which benefits the vast majority of taxpayers. It is estimated that 98 per cent of taxpayers will receive reduced or unchanged income tax. 85 per cent of taxpayers are estimated to get a relief of more than NOK 200.

The main elements of the proposed income tax consist of reducing National Insurance contributions on wages/benefits and self-employment income by 0.1 percentage point and increasing the personal allowance by NOK 1,535 beyond the reference for 2026. The reduction in National Insurance contributions reduces the average tax on income from employment and social security by 0.1 percentage point on both low and high incomes. Measured in NOK, tax relief increases with income. This is reflected in Table 1.5.

An increased personal allowance provides equal relief measured in NOK for everyone with a high enough ordinary income to benefit from the increased deduction. In isolation, this contributes to increased redistribution because the relative easing is greatest on low incomes. This is reflected in the fact that the relief measured as a percentage of gross income is greatest in decile 3 in Table 1.5.

In decile 1, a slight tightening is estimated. This is related to the nominal continuation of the exemption card limit, and the fact that this group on average pays very little tax. The fact that the exemption card limit is kept nominally unchanged must be seen in the context of the Government's historic lifting of the exemption card limit in last year's budget. The limit was then increased from NOK 70,000 to NOK 100,000. A limit of NOK 100,000 is easy to relate to for this group of taxpayers, typically young people, which may indicate that the limit should be adjusted upwards at regular intervals rather than indexed annually.

The overall distributional effects of the proposed income tax changes are broadly neutral. The average easing as a share of income is approximately the same for low and high incomes. This maintains the degree of redistribution in the income tax.

The Gini coefficient is a widely used measure to measure the degree of inequality. A higher Gini coefficient implies greater inequality. Overall household-adjusted income inequality measured by Gini is projected to increase slightly by 0.01 per cent compared to the benchmark system for 2026.

The most important changes to income tax that are not included in Table 1.5 are the proposals to implement a pilot scheme with work allowances for young people and to reduce the amount limits in the parental allowance.

The proposed changes to the wealth tax are also not included in Table 1.5. This is related to the fact that it is only possible to calculate the distributional effects of an increased threshold and nominal continuation of the threshold for a lower valuation discount for primary dwellings compared with the reference for 2026. However, the changes in the wealth tax are overall revenue-neutral: A revision of Statistics Norway's valuation model for dwellings will, when taken in isolation, result in increased wealth tax revenues, which in their entirety are used to ease wealth tax. Including only an increased threshold would therefore have given a skewed picture of the overall effects. Nevertheless, it is estimated that, on average, the overall changes in wealth tax will result in a slight increase in the tax burden for individuals with the highest incomes and wealth.

Table 1.5 Estimated distributional effects of income tax changes for persons aged 17 and over. Deciles broken down by gross income. Negative numbers are tax reductions. Compared to the benchmark system for 2026

Decile

Gross income1 NOK

Average tax under the benchmark alternative. NOK

Average tax under the benchmark alternative. Per cent

Average tax change. NOK2

Change in per cent of gross income. Per cent

1

0 – 177,600 

2,200

3.2

200

0,2

2

177,600 – 323,800 

16,800

6.4

-200

-0,1

3

323,800 – 410,200 

46,000

12.5

-600

-0,2

4

410,200 – 494,600 

75,600

16.7

-600

-0,1

5

494,600 – 580,800 

105,200

19.6

-800

-0,1

6

580,800 – 671,600 

133,600

21.3

-800

-0,1

7

671,600 – 771,800 

162,800

22.6

-1.000

-0,1

8

771,800 – 906,000 

205,400

24.6

-1.200

-0,1

9

906,000 – 1,167, 600 

282,000

27.7

-1.400

-0,1

10

1,167,600 and above 

690,800

35.7

-2.000

-0,1

Total  

170,600

25,1

-800

-0.1

¹ Includes total pre-tax income. This includes wages, self-employment, capital, social security and pension income, as well as other taxable and tax-free benefits.

² The figures are rounded to the nearest NOK 200.

Sources: Ministry of Finance and Statistics Norway's tax model, LOTTE-Skatt.

In the Government's proposal, the net accrued tax effects are estimated at zero in 2026. Reductions in income tax and electricity tax have been financed through tightening measures in areas such as value added tax and CO₂ tax, and closing gaps in business taxation. The easing and most of the restrictions affect large sections of the population. Measured in NOK, both the relief and the tightening are greatest for taxpayers on high incomes.

Reducedelectricitytaxprovidesbroadreliefon a necessitygood. For 2026, it is proposed to reduce the tax on electricity to a common rate that will apply all year round, of 4.18 øre per kWh. The proposal provides broad relief to both households and businesses. For an average home, the proposal is estimated to provide an annual saving of NOK 900. There is a clear positive correlation between household electricity consumption and income. On average, high-income households will experience greater savings than low-income households. At the same time, electricity is partly a necessity that all households consume, regardless of income. Low-income households will thus receive the largest savings as a share of income. In addition, part of the tax relief given to businesses will probably end up with households through, inter alia, lower prices. The business sector's share of the tax reduction is estimated at about 40 per cent. Assuming that the tax reduction for the business sector translates into lower prices for a wide range of product groups, there is reason to assume that households with the largest consumption will also receive the largest share of the price reduction measured in NOK. Measured as a share of income, the easing will be more evenly distributed.

A change in thevalueaddedtaxexemption for electricvehicleswillresult in thegreatesttaxincrease at thetopoftheincomedistribution. The Government proposes that the VAT exemption for electric cars be reduced from NOK 500,000 to NOK 300,000 in the central government budget for 2026. In 2024, households with the 20 per cent highest incomes bought about 40 per cent of new electric cars. The distributional effects of the proposal are described in more detail in section 11.2.3.

The changes in business taxationresult in a more accuratetax for companies, but do not affectthebroader business sector. Closing tax loopholes for financial institutions and the real estate sector (tax planning using the so-called "multi-stage model") are tax increases for businesses with substantial revenue effects. The proposals will not reduce incentives to invest in Norwegian business activities. Therefore, it is reasonable to assume that the increases will mainly be borne by the shareholders of the companies concerned, i.e. companies in the financial industry and companies that own land or rental apartments. Shareholders’ equity income largely accrues to those with high incomes.

An increase in the CO2taxwillprobablyresult in thelargesttaxincrease at thebottomoftheincomedistributionbut is returned to households throughbroadtaxreductions. The Government proposes that climate taxes in 2026 follow the linear increase to NOK 2,400 per tonne of CO2 at 2025 prices in 2030. About two-thirds of the CO2 tax is paid by companies and the rest is paid by households. The CO2 tax levied directly on households is regressive. This means that households with lower incomes receive the largest increase as a share of disposable income.[1] At the same time, the increase is greatest in NOK for households with higher incomes. It is assumed that the portion of the tax paid by firms is passed on to large parts of households through higher prices. It is uncertain to what extent this is being done, and whether low- or high-income households are experiencing the greatest cost inflation.

Geographical distributional effects

The geographical distributional effects of the proposed income tax programme for 2026 are minor. Table 1.6 presents the estimated average tax change from the Government's proposed income tax changes for people in six centrality zones. The tax changes included in the table are the same as in Table 1.5. Zone 1 is the most central and includes Oslo and some neighbouring municipalities, while zone 6 is the least central. Table 1.6 shows that the estimated average tax cuts are relatively evenly distributed across Norway.

A somewhat greater average relief is estimated in Norway's least central municipalities. The proposal to increase the Finnmark allowance to NOK 45,000 contributes to this. The deduction is granted to persons residing in the priority zone in Nord-Troms and Finnmark, and the proposal provides a maximum tax reduction of NOK 2,650 compared with the benchmark system. On average, as a result of an increased Finnmark allowance, the greatest relief is given to persons residing in the least central municipalities in Norway.

Tabell 1.1 Table 1.6 Estimated geographical distributional effects of income tax changes for persons aged 17 and over. Negative numbers are tax reductions. Compared to the benchmark system for 2026

Centrality zone

Number

Average gross income incl. tax-free benefits. NOK

Average tax under the benchmark alternative. NOK

Average tax change.1 NOK

S01 

905,800

779,000

219,000

-800

S02 

1,207,500

685,800

175,400

-800

S03 

1,176,400

649,600

156,200

-800

S04 

738,600

639,000

149,000

-800

S05 

420,000

633,000

147,200

-800

S06 

199,300

618,000

141,800

-1,000

Not identified2 

8,000

158,200

11,600

0

Total 

4,655,700

678,800

170,600

-800

¹ The figures are rounded to the nearest NOK 200.

² Some taxpayers are unable to place in a centrality zone due to lack of information.

Sources: Ministry of Finance and Statistics Norway's tax model, LOTTE-Skatt.

1.5 Tax rates and thresholds

Table 1.7 presents key tax rates, allowances and thresholds in 2025 and the Government's proposal for 2026. After adjustment for projected growth in wages, pensions or prices, etc., from 2025 to 2026, the general allowances and thresholds have been rounded off. The upward adjustment may therefore deviate somewhat from the level indicated by the various growth projections. Wage growth is estimated at 4.0 per cent, consumer price inflation at 2.2 per cent and pension growth at 3.1 per cent. Reference is made to the proposed tax decisions in this proposition and to the overview of allowances and thresholds on the Ministry's website.

Table 1.7 Tax rates, allowances and thresholds in 2025 and proposals for 2026

2025 rules

Proposal 2026

Change 2025–2026

Taxonordinaryincome

Individuals 

22 %

22 %

-

Individuals in the priority zone1 

18.5 %

18.5 %

-

Companies2 

22 %

22 %

-

Taxonresource rent industries

Petroleum (special tax)³ 

71.8 %

71.8 %

-

Hydropower (resource rent tax)⁴ 

57.7 %

57.7 %

-

Aquaculture (resource rent tax)⁵ 

32.1%

32.1%

-

Wind power (resource rent tax)⁵ 

32.1%

32.1%

-

Brackettax

Bracket 1

Threshold 

NOK 217,400

NOK 226,100

4 %

Rate 

1.7 %

1.7 %

-

Bracket 2

Threshold 

NOK 306,050

NOK 318,300

4 %

Rate 

4.0%

4.0%

-

Bracket 3

Threshold 

NOK 697,150

NOK 725,050

4 %

Rate 

13.7%

13.7%

-

Bracket 4

Threshold 

NOK 942,400

NOK 980,100

4 %

Rate 

16.7 %

16.7 %

-

Bracket 5

Threshold 

NOK 1,410,750

NOK 1,467,200

4 %

Rate 

17.7 %

17.7 %

-

National Insurance contributions

Lower threshold for paying National Insurance contributions 

NOK 99,650

NOK 99,650

-

Levelling rate 

25 %

25 %

-

Rate

Wage income 

7.7 %

7.6 %

-0.1 pp

Fishing and childcare6 

7.7 %

7.6 %

-0.1 pp

Other self-employment income 

10.9 %

10.8 %

-0.1 pp

Pension income, etc. 

5.1 %

5.1 %

-

Rate on gross income for foreignemployees (withholdingtax) 

25 %

25 %

-

Employer's National Insurance contributions

Zone I 

14.1%

14.1%

-

Zone Ia7 

14.1/10.6%

14.1/10.6%

-

Zone II 

10.6%

10.6%

-

Zone III 

6.4%

6.4%

-

Zone IV 

5.1%

5.1%

-

Zone IVa 

7.9%

7.9%

-

Zone V 

0%

0%

-

Maximum effective marginal tax rates

Wage income, excluding employer's National Insurance contributions 

47.4%

47.3%

-0.1 pp

Wage income, incl. employer's National Insurance contributions 

53.9 %

53.8 %

-0.1 pp

Pension income8 

44.8%

44.8%

-

Self-employment income 

50.6 %

50.5 %

-0.1 pp

Dividends, excluding corporate income tax 

37.8 %

37.8 %

-

Dividends, including corporate income tax9 

51.5 %

51.5 %

-

Personal allowance 

NOK 108,550

NOK 114,210

5.2 %

Basic allowanceagainstwageincome, etc.¹⁰

Rate 

46 %

46 %

-

Upper limit 

NOK 92,000

NOK 95,700

4 %

Basic allowanceagainstpension income10

Rate 

40 %

40 %

-

Upper limit 

NOK 73,150

NOK 75,400

3.1%

Taxcredit for pensionincome

Maximum amount 

NOK 36,000

NOK 37,100

3.1%

Downscaling, bracket 1

Threshold 

NOK 276,400

NOK 284,950

3.1%

Rate 

16.7 %

16.7 %

-

Downscaling, bracket 2

Threshold 

NOK 422,950

NOK 436,050

3.1%

Rate

6.0%

6.0%

-

Taxlimitation rule11

Levelling rate 

55 %

55 %

-

Tax-free net income

Single person 

NOK 157,450

NOK 163,750

4 %

Married person 

NOK 145,550

NOK 151,350

4 %

Wealth supplement

Rate

1.5 %

1.5 %

-

Single person 

NOK 200,000

NOK 200,000

-

Married person 

NOK 100,000

NOK 100,000

-

Special allowance in Finnmark and Northern Troms (thepriorityzone)¹ 

NOK 30,000

NOK 45,000

50 %

Special allowance for seafarers

Rate 

30 %

30 %

-

Upper limit 

NOK 83,000

NOK 83,000

-

Special allowance for fishermen

Rate 

30%

30%

-

Upper limit 

NOK 154,000

NOK 154,000

-

Special allowanceagainstself-employmentincome from agriculture, etc.¹²

Income-independent allowance 

NOK 95,800

NOK 95,800

-

Rate applicable to amounts in excess of the income-independent allowance 

38%

38%

-

Maximum total allow- ance 

NOK 200,850

NOK 200,850

-

Maximum deduction for payments to individualpensionsavings 

NOK 15,000

NOK 25,000

67 %

Allowance for travel betweenhome and work

Rate per km 

1,83 kr

1,87 kr

2.2 %

Lower limit of the deduction 

NOK 15,250

NOK 15,600

2.3 %

Upper limit 

NOK 100,880

NOK 103,100

2.2 %

Maximum allowance for donations to voluntaryorganisations 

NOK 25,000

NOK 25,000

-

Maximum deduction for paid union dues, etc. 

NOK 8,250

NOK 8,700

5.5 %

Home Savings for YouthBelowthe Age of 34 (BSU)

Tax deduction rate 

10 %

10 %

-

Maximum annual savings 

NOK 27,500

NOK 27,500

-

Maximum total savings under the scheme 

NOK 300,000

NOK 300,000

-

Parental allowance for documentedchildcareexpenses

Upper limit13

One child 

NOK 25,000

NOK 15,000

-40 %

Supplement per child beyond the first 

NOK 15,000

NOK 10,000

-33 %

Wealth tax14

Municipality

Threshold 

NOK 1,760,000

NOK 1,900,000

8 %

Rate 

0.525 %

0.35 %

-0.175 pp

State

Threshold, bracket 1 

NOK 1,760,000

NOK 1,900,000

8 %

Rate, bracket 1 

0.475 %

0.65 %

0.175 pp

Threshold, bracket 2 

NOK 20.7 million

NOK 21.5 million

3.9 %

Rate, bracket 2 

0.575 %

0.75 %

0.175 pp

Valuation15

Primary residence 

25 %

25 %

-

High-valuation primary dwelling16 

70 %

70 %

-

Secondary residence (and assigned debt) 

100 %

100 %

-

Shares (incl. commercial property) and assigned debt 

80 %

80 %

-

Operating assets (and assigned debt) 

70 %

70 %

-

Financial activitytax

Financial activity tax on payrolls 

5 %

5 %

-

Financial activity tax on profits 

3 %

3 %

-

Depreciation rates

Asset group a (office machinery, etc.) 

30%

30%

-

Asset group b (acquired goodwill) 

20%

20%

-

Asset group c (heavy goods vehicles, lorries, buses, vans, etc.) 

24%

24%

-

Asset group d (passenger cars, machinery and equipment, etc.) 

20%

20%

-

Asset group e (ships, vessels, rigs, etc.) 

14%

14%

-

Asset group f (aircrafts, helicopters) 

12%

12%

-

Asset group g (facilities for transmission and distribution of electricity and electrotechnical equipment in power com- panies) 

5%

5%

-

Asset group h (buildings and installations, hotels, etc.)¹⁷ 

4 (6/10/20)%

4 (6/10/20)%

-

Asset group i (office buildings) 

2%

2%

-

Asset group j (technical facilities in office buildings and other commercial buildings) 

10%

10%

-

¹ The priority zone for Finnmark and Nord-Troms includes all 18 municipalities in Finnmark in addition to the municipalities Karlsøy, Storfjord, Kåfjord, Skjervøy, Nordreisa, Kvænangen and Lyngen in North Troms.

² The tax rate on ordinary income for businesses subject to financial activity tax is 25 per cent in both 2025 and 2026.

³ Since calculated corporate income tax is deducted from the special tax base, a formal tax rate of 71.8 per cent will correspond to an effective tax rate of 56 per cent.

⁴ Since resource rent-related corporate income tax is deducted from the resource rent tax base, a formal tax rate of 57.7 per cent will correspond to an effective tax rate of 45 per cent.

⁵ Since resource rent-related corporate income tax is deducted from the resource rent tax base, a formal tax rate of 32.1 per cent will correspond to an effective tax rate of 25 per cent.

⁶ Self-employed persons engaged in fishing, as well as in childcare in their own home (children under the age of 12 or with special care needs) pay National Insurance contributions on self-employment income at the rate of 7.7 per cent in 2025 and 7.6 per cent in 2026. The lower National Insurance contribution rate for fishing is related to the fact that these industries pay product tax, which is intended to cover, inter alia, the difference between this rate and the rate for other self-employment income.

⁷ In zone Ia, employer's National Insurance contributions shall be paid at a rate of 10.6 per cent until the difference between what the enterprise pays in employer's National Insurance contributions at this rate and what the enterprise would have paid in employer's National Insurance contributions at a rate of 14.1 per cent is equal to the tax-free allowance. For the excess tax base, the rate of 14.1 per cent is applied. In 2026, the tax-free allowance is NOK 850,000 per enterprise.

⁸ For persons covered by the tax credit for pension income, the highest effective marginal tax rate may be up to 47.8 per cent in both 2025 and 2026.

⁹ Includes corporate income tax and an upward adjustment factor for dividends, etc. In both 2025 and 2026, corporate income tax is 22 per cent and the upward adjustment factor for dividends, etc., is 1.72.

¹⁰ Taxpayers with both wage income, etc., and pension income will receive the sum total of the minimum deductions from wage income and pension income. The upper limit on the minimum allowance against wage income applies as the upper limit on the sum of the minimum allowances.

¹¹ The tax-free net income under the tax limitation rule increases by NOK 10,000. The change applies from the 2025 tax year. See section 3.2.6.

¹² The income-independent deduction from the reindeer husbandry allowance is NOK 95,800, and the maximum allowance is NOK 200,850 in 2026.

¹³ For children aged 12 and over with special needs for care and care, the limits of NOK 25,000 for one child and NOK 15,000 per child will be retained beyond the first in 2026.

¹⁴ The thresholds are for single taxpayers. For spouses, whose taxes are assessed jointly on joint wealth, the thresholds are double those specified in the table.

¹⁵ The valuation applies to assets owned directly by the taxpayer liable for wealth tax.

¹⁶ A high-valuation primary dwelling applies to the part of the property value that exceeds NOK 10 million in both 2025 and 2026.

¹⁷ Livestock buildings in agriculture can be depreciated at higher rate of 6 per cent. Buildings with such a simple structure that their useful life must be assumed not to exceed 20 years, can be depreciated at a rate of 10 per cent. The rate of 10 per cent also applies to facilities where the useful life must be assumed not to exceed 20 years. Costs for the establishment of fruit and berry fields can be depreciated on a declining balance basis at a rate of 10 and 20 per cent, respectively.

Source: Ministry of Finance.

Table 1.8 presents the current rates for value added tax and excise duties, as well as the proposed rates for 2026. All excise duties have generally been adjusted upwards by 2.2 per cent to take into account expected inflation. Minor deviations may be due to rounding of the rates. Reference is also made to the decision on indirect taxes proposed in this proposition.

Table 1.8 Tax rates in 2025 and proposed rates for 2026

Tax category

2025 rules

Proposal 2026

Change in pct.

Value addedtax, per cent of sales value

Standard rate 

25

25

-

Reduced rate 

15

15

-

Low rate 

12

12

-

Taxonalcohol

Spirits-based beverages above 0.7 per cent alcohol by volume, NOK per vol. per cent per litre 

9.03

9.23

2.2

Other alcoholic beverages from 4.7 to 22 per cent alcohol by volume, NOK per vol. per cent per litre 

5.29

5.41

2.3

Other alcoholic beverages up to and including 4.7 per cent alcohol by volume, NOK per volume per cent per litre

0.0–0.7 volume per cent 

-

-

-

0.7–2.7 volume per cent 

3.64

3.72

2.2

2.7–3.7 volume per cent 

13.68

13.98

2.2

3.7–4.7 volume per cent 

23.68

24.20

2.2

Fermented alcoholic beverages from 3.7 to 4.7 per cent alcohol by volume, produced at small breweries. 

Vary

Vary

-

Taxontobaccoproducts

Cigars, NOK per 100 grams 

324

331

2.2

Cigarettes, NOK per 100 pcs 

324

331

2.2

Smoking tobacco, NOK per 100 grams 

324

331

2.2

Snus, NOK per 100 grams 

100

102

2.0

Chewing tobacco, NOK per 100 grams 

132

135

2.3

Cigarette paper, NOK per 100 pcs 

4.96

5.07

2.2

E-liquids containing nicotine, NOK per 100 ml 

526

538

2.3

Tobacco for heating, NOK / 100 grams 

324

331

2.2

Other nicotine products, NOK per 100 grams 

49.70

50.79

2.2

Registrationtaxonvehicles

Passenger cars, etc. Tax group a1

All passenger cars

Kerb weight, NOK per kg

first 500 kg 

0

0

-

Rest 

12.44

12.71

2.2

Passenger cars, etc., with internal combustion engine

Kerb weight, NOK per kg

first 1,200 kg 

-

0

-

Rest 

-

260

-

CO2 emissions, NOK per g/km

first 100 g/km 

-

800

-

next 50 g/km 

-

1,600

-

next 75 g/km 

-

3,200

-

Rest 

-

5,000

-

Vans class 2. Tax group b2

Kerb weight, NOK per kg 

first 1,200 kg 

-

0

-

Rest 

-

30

-

CO2 emissions, NOK per g/km

first 100 g/km 

-

300

-

next 50 g/km 

-

600

-

Rest 

-

1,200

-

Campers. Tax group c

Kerb weight, NOK per kg

first 500 kg 

0

0

-

next 700 kg 

6.57

6.71

2.1

next 200 kg 

16.36

16.72

2.2

next 100 kg 

51.14

52.26

2.2

Rest 

59.47

60.78

2.2

Piston displacement 

Vary

Vary

-

Motorcycles. Tax group f3

Piston displacement tax, NOK per cm3

first 500 cm3 

0

0

-

next 400 cm3 

35.55

36.33

2.2

Rest 

83.07

84.90

2.2

CO2 emissions, NOK per g/km

first 75 g/km 

0

0

-

next 60 g/km 

790,95

808,35

2.2

Rest 

1,069.48

1,093.01

2.2

Snowmobiles. Tax group g

Kerb weight, NOK per kg

first 100 kg 

16,70

17,06

2.2

next 100 kg 

33,39

34,13

2.2

Rest 

66,77

68,23

2.2

Engine power, NOK per kW

first 20 kW 

26,81

27,40

2.2

next 20 kW 

53,65

54,83

2.2

Rest 

107,27

109,63

2.2

Piston displacement, NOK per cm3

first 500 cm3 

0

0

-

Rest 

11,74

12,00

2.2

Minibuses. Tax group j4

Percentage of passenger car tax 

-

23

-

Trafficinsurancetax, NOK per day5

Passenger cars, vans, etc. 

6,38

6,52

2.2

Diesel cars without factory-fitted particulate filter 

7,93

8,10

2.1

Motorcycles 

5,39

5,51

2.2

Tractors, mopeds, etc. 

0,38

0,39

2.6

Electric cars 

8,96

9,16

2.2

Annualweight-basedtax, NOK per year 

Vary

Vary

-

Re-registrationfee 

Vary

Vary

-

Road usagetaxonfuel

Petrol, NOK per litre 

4.16

4.25

2.2

Mineral oils, NOK per litre 

2.69

3.00

11.5

Bioethanol, NOK per litre 

2.12

2.17

2.4

Biodiesel, NOK per litre 

2.69

3.00

11.5

Natural gas, NOK per Sm3 

3.05

3.12

2.3

LPG, NOK per kg 

3.98

4.07

2.3

Electricitytax, NOK 0.01/kWh6

Standard rate 

12.53

4.18

-66.6

Lower standard rate in January-March 

9.79

-

-

Reduced rate 

0.60

0.60

0

Taxonlubricatingoil, kr/litre 

2.62

2.68

2.3

CO2taxon mineral products

Petrol, NOK per litre 

3.25

3.80

16.9

Mineral oils, NOK per litre

General rate 

3.79

4.42

16.6

domestic aviation 

3.58

4.18

16.8

domestic aviation subject to ETS7 

1.77

0

-

domestic shipping subject to ETS8 

1.96

2.15

9.7

subject to ETS7 

0.25

0

-

fishing in distant waters 

0.93

1.11

19.4

fishing in near and distant waters9 

-

2.76

New

international shipping10 

-

-

-

Natural gas, NOK per Sm3

General rate 

2.80

3.26

16.4

chemical reduction, etc.¹¹ 

-

0.82

-

greenhouse industry 

0.42

1.41

235.7

domestic shipping subject to ETS8 

1.46

1.59

8.9

subject to ETS7 

0.066

0

-

fishing in distant waters 

0.70

0.82

17.1

fishing in near and distant waters9 

-

2.04

New

iinternational shipping10 

-

-

-

LPG, NOK per kg

General rate 

4.22

4.92

16.6

chemical reduction, etc.¹¹ 

-

1.23

-

greenhouse industry 

0.63

2.13

238.1

domestic shipping subject to ETS8 

2.21

2.40

8.6

subject to ETS 

0

0

-

fishing in distant waters 

1.05

1.23

17.1

fishing in near and distant waters9 

-

3.08

-

international shipping10 

-

-

-

Waste incinerationtax, NOK per tonne CO2

Non-ETS emissions 

830

848

2,2

Emissions subject to ETS 

182

186

2,2

TaxonHFCs and PFCs, NOK per tonne CO2 equivalents 

1,405

1,639

16.7

Taxon SF6, kr/kg SF6 

Pure SF6 

33,018

38,517

16.7

SF6 included in products 

6,604

7,708

16.7

CO2tax in the petroleum sector

mineral oils, NOK per litre 

2.51

2.57

2.4

natural gas, NOK per Sm3 

2.21

2.26

2.3

natural gas discharged into the atmosphere, NOK per Sm3 

20.17

23.53

16.7

Sulphurtax, ear/litre 

15.70

16.00

1.9

Taxon NOX, kr/kg 

26.36

26.94

2.2

Taxonfarmedfish, kr/kg 

0.965

0.985

2.1

Taxonwild marine resources, percentage of gross sales amount less fee to fishermen's sales association 

0.42

0.42

-

Taxonwindpower, øre/kWh 

2.37

2.42

2.1

Taxonsugar, kr/kg 

9.46

9.67

2.2

Taxonbeveragepackaging, NOK per unit

Base tax, disposable packaging 

1.42

1.45

2.1

Environmental tax

glass and metal 

6.91

7.06

2.2

plastic 

4.18

4.27

2.2

cardboard and cartons 

1.70

1.74

2.4

Air passengertax, NOK per passenger

Low rate 

60

61

1.7

High rate 

342

350

2.3

Stamp duty, per cent of sales value 

2.5

2.5

-

¹ Group a: Passenger cars, etc. It is proposed that the rate structure for cars with internal combustion engines be simplified with changes in the tax base, threshold and tax rates. The table therefore only presents proposals for new regulations, not current regulations. The proposal implies that most passenger cars with internal combustion engines will receive a tax increase of NOK 20,000 to NOK 30,000.

² Group b: Vans class 2. It is proposed that the rate structure for vans be simplified with changes in the tax base, threshold and tax rates. The table therefore only presents proposals for new regulations, not current regulations. The proposal means that most vans with internal combustion engines will receive a tax increase of NOK 8,000 to NOK 16,000.

³ Group f: Motorcycles. Vehicles for which CO2 emissions are not registered are subject to tax per unit and tax on engine power, in addition to piston displacement tax.

⁴ Group j: Buses less than 6 metres in length with up to 17 seats, of which at least 10 are forward-facing. It is proposed that the rate structure for minibuses be simplified with changes in the tax base, threshold and tax rates. The table therefore only presents proposals for new regulations, not current regulations.

⁵ The tax that each insurance policy triggers is calculated on the basis of the tax rates that applied when the insurance started to run. For insurance policies that were subscribed or had their main expiry date before 1 March 2025, the 2024 rates apply. The 2025 rates apply to insurance policies that were subscribed or had their main expiry date between 1 March 2025 and 28 February 2026. For insurance policies that are subscribed or have their main expiry date after 1 March 2026, the 2026 rates apply.

⁶ It is proposed to merge the two rates of electricity tax into a single rate that will apply for the whole year. In connection with the Revised National Budget 2025, the general rate of electricity tax, which applies to April to December, was set at 12.53 øre per kWh. The rate came into effect on 1 October 2025 but will be replaced by the new rate of 4.18 øre per kWh from 1 January 2026.

⁷ A general exemption is introduced for emissions subject to ETS that are not covered by the Effort Sharing Regulation, including for domestic aviation and industry subject to ETS, provided that the exemption is in line with the state aid rules.

⁸ A reduced rate will be introduced for domestic shipping subject to ETS, provided that this is in line with the state aid rules.

⁹ A separate rate is introduced for fishing in near and distant waters.

¹⁰ In connection with the national budget for 2025, it was decided to introduce a reduced tax for international shipping. The levy has not come into effect. The proposal will not be tabled until 2026.

¹¹ It has been decided to introduce a tax on natural gas and LPG for chemical reduction, etc., if businesses subject to ETS can be exempted from the tax. The levy has not come into effect.

Source: Ministry of Finance.

1.6 Distribution of public tax revenues

Table 1.9 provides a general overview of the main groups of taxes and the parts of the public sector that receive revenues from each main group. Total tax revenues are estimated at NOK 2,124 billion in 2025. Of this, about 86 per cent accrues to central government, 12 per cent to local government and 2 per cent to county municipalities.

Tabell 1.2 Table 1.9 Accrued taxes by tax creditor. Estimates for 2025. NOK billion

Total

State

Municipality

County

Personal taxpayers 

770.0

488.3

236.1

45.6

Tax on ordinary income 

419.0

154.1

219.3

45.6

Tax on personal income 

119.9

119.9

-

-

National Insurance contributions 

197.9

197.9

-

-

Wealth tax 

33.1

16.3

16.8

-

Companies (whosetaxesarepayable in arrears) 

129.5

127.8

1.4

0.3

Income tax (including power plants) 

128.4

126.8

1.4

0.3

Wealth tax 

1.1

1.1

-

-

Financial activitytax 

6.9

6.9

-

-

Tax on payrolls 

3.0

3.0

-

-

Tax on profits 

3.9

3.9

-

-

Property tax 

18.5

-

18.5

-

Employer's National Insurance contributions 

270.0

270.0

-

-

Fees 

519.4

519.4

-

-

Value added tax 

406.0

406.0

-

-

Excise duties and customs duties1 

113.4

113.4

-

-

Petroleum  

336.2

336.2

-

-

Tax on income 

326.9

326.9

-

-

Tax on extraction, etc. 

9.3

9.3

-

-

Othertaxes 

73.4

67.7

4.8

1.0

National Insurance and pension premiums, other central government accounts2 

43.9

38.1

4.8

1.0

Tax on dividends foreign share- holders 

14.0

14.0

-

-

Other taxes3 

15.5

15.5

-

-

Total taxes 

2,124.0

1,816.2

260.9

46.8

¹ Excluding certain excise duties and sectoral taxes that are recognised as taxes in the central government budget but are grouped as property income or user payments in the national accounts.

² These include the Norwegian Public Service Pension Fund.

³ This includes some revenue items that are grouped as tax revenues in the national accounts but are not recognised as tax revenues in the fiscal budget.

Source: Ministry of Finance.

Fotnoter

1)
Menon (2024). Distributional effects of climate policy.