Tax rates Norway - 2019
The tax percent in Norway depend on the income and it is determined with basic income tax and bracket tax.
All employees working in Norway will as a general rule be taxable to Norway. Exemptions may occur in the tax law or in a tax treaty.
Income tax for 2019 is 22 % of net income after deductions
If your gross income exceeds NOK 174 500 a year or gross NOK 14 542 a month, a progressive bracket tax is levied on top of the 22 % income tax. The tax rate for bracket tax 2019 is
If you are not resident in Norway for tax purposes, the bracket limits are reduced according to number of months, i.e. present in 5 months the bracket starts at NOK 72 708 (5/12)
Please notice that special tax rules apply for persons living in Finnmark and Nord-Troms.
In addition to the income tax, employees working in Norway is obligated to pay national insurance contribution to Norway. For the income year 2019 the rate is 8,2%. Exemptions can be found in the Act.
New tax scheme
From 2019, a new and simplified tax scheme will take effect. The scheme is meant for foreign workers in Norway. This scheme is called PAYE (Pay As You Earn). Most new foreign workers will fall under this scheme the first year they work in Norway.
Income from employment is taxed at a rate of 25 percent. The rate includes national insurance contributions at 8.2 percent. The tax is final and settled when it is deducted and reported. Employees do not claim deductions, submit a tax return or receive a tax assessment notice.
Those who meet the criteria are automatically included in the PAYE scheme. If you prefer to be taxed under the general tax rules, you must specify this when you apply for a tax deduction card, or at any time during the income year by applying for a new tax deduction card.
The scheme does not apply for foreign seafarers and offshore workers, workers that wish to use the Nordic treaty on payment and transfer of tax and workers that have business income or taxable income from property in Norway.
Contact Inger Lise Løvneseth