SHARE
COPY LINK
For members

TAX

What changes about tax in Norway in 2022?

Next year will see changes in the taxes you pay on your income in Norway, increases to the cost of several everyday items and new rules for how much you can deduct from your annual bill.

Pictured is two people making calculations.
These are the changes to tax you need to know about that. Pictured is two people making calculations. Photo by Scott Graham on Unsplash

Lower income tax for the majority

Most wage earners in Norway will pay lower taxes in the new year. Those who earn less than 750,000 kroner per year will pay less in taxes. According to the government, around 82 percent will pay less or the same in taxes.

In addition, those aged between 17 and 29 who earn less than 535,000 kroner will receive a tax credit of up to 5,170 kroner.

Residents of Norway pay an income tax of 22 percent, in addition to a bracketed tax that is calculated based on your income.

Increased bracket tax for higher earners

Norway’s bracket tax, an incremental tax paid based on your earnings and paid alongside the flat rate, will be raised for higher earners. In general, income tax will become higher for those who earn more than 643,800 kroner a year and the entry points for steps three and four for the incremental tax will be lowered. In addition, a fifth step for the highest earners, who make more than 2 million kroner, will be introduced.

READ ALSO: What changes about life in Norway in 2022? 

Petrol to cost more

The cost of fuel will go up considerably due to hiked taxes on petrol and diesel. Petrol tax is set to rise to 1.60 kroner per litre, and diesel tax will increase to 1.87 kroner per litre.

Wealth tax increases and changes

The wealth tax will be increased to 0.95 percent of personal assets, and for those who have assets of more than 20 million kroner (40 million for spouses), a rate of 1.1 percent will apply.

Houses with a valuation of more than 10 million kroner will receive an increase in taxation. Primary homes are currently valued at 25 percent of market value. The portion of a house valued above 10 million kroner (for example, five million kroner if the property is worth 15 million), will be taxed at 50 percent of market value.

The valuation of shares and fixed assets will increase from 55 percent to 75 percent from the income year 2022.

Union deductibles to increase

People who are members of a trade union will receive a tax deduction of 5,800 kroner. The union deductible was previously 3,850 kroner. In 2023 the deduction will increase to 7,700 kroner.

Deduction for gifts and donations to voluntary organisations will be reduced

The maximum tax deduction you can claim for donations to voluntary organisations will be halved from 50,000 kroner to 25,000 kroner.

Duty-free rules change

The duty-free quota rules will be changed from January 1st, meaning it will no longer be possible to replace the tobacco quota with 1.5 litres of wine or beer. This will come as a blow to those who don’t smoke but like to grab a discount at duty-free.

Tobacco will become more expensive 

The tobacco tax will increase by five percent above the regular price adjustment. For example, the tax on a pack of twenty cigarettes will increase to 59 kroner. For snus, the tax increases from 85 kroner per 100 grams to 90 kroner per 100 grams.

CO2 tax to increase

The CO2 tax will also be increased, but road and motor insurance tax will be slashed. The travel deduction for commuters will change too. As of the income year 2022, the current two rates for travel deductions will be replaced by one common kilometre rate of NOK 1.65 per kilometre.

Electricity tax to change

Electricity tax will see a slight decrease of 8 øre (an øre is a hundredth of a krone) per kilowatt-hour during the winter and 1.5 øre during the rest of the year.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WHAT CHANGES IN NORWAY

Everything that changes about life in Norway in July 2022

Free ferries, a potential pilot strike, more expensive food and a change in the voting rules are among the biggest changes happening in Norway during July.

Everything that changes about life in Norway in July 2022

Potential pilot strike

This one isn’t fully set in stone but could spell travel chaos if it goes ahead. Up to 900 pilots from SAS could be taken out on strike from July 2nd if an agreement isn’t reached between the airline and pilots’ representatives. 

After weeks of intensive negotiations over a new agreement between SAS leadership and 1,000 of the airline’s pilots, both sides were willing to continue discussions, pushing back the original deadline. 

Pilots are unhappy that SAS is hiring new pilots on cheaper contracts in their two subsidiaries, SAS Link and SAS Connect. If the two parties cannot agree, up to 30,000 SAS passengers could be affected per day, the airline said on June 27th.

You can check the likelihood of your flight being affected here

Food prices are likely to go up

July will also see the cost of grocery shopping in Norway go up significantly. This is because the price farmers will be able to charge for milk, grain, potatoes, vegetables and fruit in Norway will rise. 

Food prices in Norway are adjusted twice a year by supermarkets. The next change is set to happen in July, with prices expected to go up due to increasing costs from suppliers and producers. 

Ferries to become free

Ferry connections with less than 100,000 annual passengers will be completely free from the beginning of July. 

The government pledged to make all ferry connections with less than 100,000 passengers free of charge when it was formed last October to try and make transport easier for rural and coastal communities and boost tourism. 

Free tickets will apply to both residents, tourists and commercial passengers. 

READ MORE: Norwegian islands lose quarter of voters as foreigners frozen out of local elections

Fellesferie begins

Fellesferie is the collective leave period or general staff holiday period that many Norwegian companies have adopted, which takes place during July. 

The origins of fellesferie date back to the interwar years, when employers and employees in the Norwegian metal smelting industry agreed on a collective holiday period of three weeks. 

If you’ve not experienced the holiday period in Norway yet, it’ll feel like everything is coming to a grinding halt.

Many companies will shut down entirely or operate vastly reduced opening hours. As a result, big cities such as Oslo can feel practically deserted as everyone flocks to the beaches, fjords and mountains – often staying in their country retreats or hyttes If they aren’t travelling abroad.

READ MORE: Everything you need to know about Norway’s collective holiday period

Air passenger tax returns

Air travel will become slightly more expensive at the beginning of July as the passenger tax for travellers will be reintroduced. 

The low rate of 80 kroner per passenger will be applied to journeys where the final destination is within Europe. 

Those travelling outside of Europe will have to pay a tax of 214 kroner. 

Rates apply to Europe as a whole, rather than the EU, so passengers heading to the UK will pay the lower rate. 

A new grid rent model implemented 

The beginning of July also sees a new grid rent system introduced. 

Grid rent is the charge consumers pay for receiving electricity into their homes. Under the current model, grid rent is typically anywhere between 20 to 50 øre per kilowatt-hour. Those in rural areas usually pay more, while those in cities pay less.

The new model will have a lower fixed proportion of the fee with a higher part of the charge linked to total consumption, meaning homes that use more power will pay higher grid rent, while those that consume less will have lower bills. 

READ MORE: What Norway’s new grid rent model means for you

A transition period of two years will be introduced, and the new consumption charge will only be allowed to account for 50 percent of grid companies’ revenues. The energy ministry will then assess the new model at the end of the transition period. 

Svalbard residents lose their voting rights

The Arctic archipelago of Svalbard is to lose over a quarter of its voting base for local elections under new rules preventing foreign nationals from participating.

Under new rules, non-Norwegian citizens will be required to have lived in a Norwegian municipality for three years in order to be eligible to vote in local elections and run for office on the remote Arctic archipelago.

Over 700 of the 2,500 people who live on Svalbard could be affected by the decision, broadcaster NRK reports.

SHOW COMMENTS