The government appointed a Tax Commission in December 2025, to provide recommendations for a comprehensive tax reform designed to maintain a competitive tax level for Norwegian businesses and achieve broad political consensus.
After six months of work, the Commission presented its final advice and recommendations for changes to Norway’s tax system on June 24th.
If adopted by the Storting, these proposals would represent Norway’s most significant tax reform in decades, shifting up to 23 billion kroner through tax cuts and increases.
The report will now enter a public consultation period to gather feedback before the government returns to Parliament for final negotiations.
Here is a breakdown of what could change for your finances.
Cut in income tax
The Commission’s main goal is to strengthen the workforce by making it more financially rewarding to remain in employment.
To achieve this, they propose an 11.7 billion kroner reduction in income tax on wages by adjusting social security contributions. These contributions are mandatory taxes on wages, pensions, and business income that fund the National Insurance Scheme.
They also recommend increasing the personal allowance by 10,000 kroner, a move that would cut total income tax revenues by 8.5 billion kroner.
The personal allowance is the fixed, tax-free basic amount all Norwegian residents receive before income tax is calculated.
For the average worker, this means an annual tax relief ranging from 1,600 to over 9,000 kroner, depending on gross income. Those earning less than 179,200 kroner would see no change.
For example, if you earn between 323,800 and 408,200 kroner, you would receive about 3,000 kroner in annual tax relief.
If you earn between 408,200 and 490,800 kroner, you would receive a tax relief of roughly 3,400 kroner.
Lower wealth tax
One of the most controversial topics in Norway is the wealth tax, as it remains one of the few countries to maintain it.
The wealth tax is a tax levied on a person's net worth (total assets minus debt) and currently applies to around 14 percent of Norwegian taxpayers.
READ MORE: Who needs to pay Norway's controversial wealth tax?
The Tax Commission proposes reducing the total yield from the wealth tax by up to 25.2 billion kroner by introducing a new lower rate between 0.25 percent and 0.75 percent. Currently, individuals with assets over 1.9 million kroner pay 1 percent, while those with assets over 21.5 million kroner are taxed at 1.1 percent.
This recommendation has already sparked intense political opposition, with critics calling it a massive tax cut for the ultra-wealthy.
However, the Commission also proposes removing current valuation discounts (verdivurderingsrabatter), which allow taxpayers to declare a lower taxable value for shares and operating assets.
As a result, the actual tax reduction for some wealthy individuals may be less than the new rates suggest.
Housing and cabin tax
To offset these significant income and wealth tax cuts, the Commission suggests raising funds by changing how property is valued.
Under the new plans, residential properties and holiday homes (hytter) would be valued closer to their actual market value for tax purposes, instead of the lower historical values currently used.
For primary homes, they propose a maximum basic deduction of 7 million kroner, though politicians could choose to lower this all the way down to zero.
But, ultimately, where this threshold is set, alongside the wider wealth tax reform will have an enormous impact on property owners.
There would be two scenarios.
For example, under a low-tax scenario calculated with a 0.25 percent wealth tax rate and a 7 million kroner basic deduction, a home worth 12 million kroner would result in an annual tax bill of 12,500 kroner.
If politicians agree on a 0.75 percent rate and drop the basic deduction entirely, the tax bill for that exact same 12 million kroner home would skyrocket to 90,000 kroner.
Note: These calculations assume you have other net assets of at least 2 million kroner, and any outstanding mortgage debt would still be deducted from your taxable wealth.
For holiday homes, adjusting to market values could generate an additional 2.5 billion kroner in wealth tax revenue.
Additionally, the Commission recommends repealing the current exemption that allows tax-free gains when selling a long-term holiday home; instead, profits from cabin sales would become fully taxable, while losses would be deductible.
Stopping tax-free home flipping
Currently, residential property investors in Norway can live in a rental property for just one year and then sell it entirely tax-free.
The Commission aims to tighten these rules to reduce short-term property speculation.
Under the new proposal, you must live in the property for at least three out of the last five years to qualify for a tax-free sale. This measure is intended to stop rapid “home flipping”.
Increased taxes for pensioners
In what is bound to be unwelcome news for retirees, the Commission proposes raising the minimum age limit for receiving pension tax credits from 62 to 67 years.
This benefit is a special tax reduction that ensures retirees pay lower taxes on their pension income than standard workers.
Under the new plan, early retirees would lose this tax relief, with the aim of encouraging older employees to remain in the workforce for longer.
If implemented, nearly 65,000 pensioners could face a tax increase of over 10,000 kroner per year, with the average increase estimated at around 23,000 kroner.
To ease the transition, the Commission suggests a gradual phase-in, raising the age limit by one year at a time. This approach would protect current retirees and provide younger individuals with clearer incentives to continue working.
READ ALSO: What will Norway's plan to toughen citizenship rules mean for you?
Higher VAT on culture, camping, and Airbnb
To offset revenue lost from income tax cuts, the Commission has also proposed increasing the value-added tax (VAT) from 12 percent to 15 percent on room rentals, camping sites, cabin rentals, passenger transport, and cultural events.
Consumers will feel this directly through more expensive travel, when booking a hotel, or going to a concert.
These VAT increases are expected to generate approximately 6 billion kroner in additional state revenue.
Authorities are also considering increasing the VAT rate to short-term holiday rentals booked through digital platforms such as Airbnb and Booking.com.
Kilometre tax for cars
The Commission recommends exploring a new kilometre tax to replace the current road insurance and fuel taxes.
This per-kilometre fee would apply equally to all vehicles, with no distinction between electric and fossil-fuel cars.
Under this system, the more you drive on Norwegian roads, the more you pay.
Exit tax updates
The Tax Commission did not reach unanimous agreement on how the controversial expatriation tax (the so-called exit tax) should be restructured for individuals moving their wealth out of Norway.
However, a majority agreed on several key principles to adjust the framework.
Under these guidelines, the tax rate on dividends received from a Norwegian company after moving abroad would be temporarily reduced from 70 percent to 37.84 percent until the exit tax debt is fully paid.
The majority recommends introducing a clear exit tax exemption for foreign workers who only reside temporarily in Norway.
The proposal also includes granting tax deductions if the value of shares declines within three years of leaving the country.
Finally, the commission maintains that the controversial 12 year rule should remain in place. This means tax debt to Norway upon emigration, plus accrued interest, must be paid within 12 years, regardless of whether the shares have been sold.
What is staying the same?
Despite speculation, the Commission explicitly stated that it does not want to reintroduce a national inheritance tax, which was abolished back in 2014.
Additionally, they recommended maintaining the corporate tax rate at its current stable level of 22 percent.
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