Norway Tax Rates
Norway operates a dual income tax system that separates ordinary income (taxed at a flat 22%) from personal income subject to an additional progressive bracket tax (trinnskatt) reaching up to 17.6%. The combined top marginal rate on employment income is approximately 47.4%. As a major oil-producing nation, Norway funds its generous welfare state through the Government Pension Fund Global (the world's largest sovereign wealth fund) and maintains high social contributions and a 25% standard VAT.
Top Income Tax Rate
47.4%
Corporate Tax Rate
22%
VAT / Sales Tax
25%
Capital Gains Tax
37.8%
Detailed Tax Information
Income Tax Brackets
Norway uses a dual income tax system. All income is subject to a flat ordinary income tax (alminnelig inntekt) of 22%. In addition, earned income (employment and self-employment) is subject to a progressive bracket tax (trinnskatt) with rates ranging from 1.7% to 17.6% across five brackets. The bracket tax rates shown above are additive to the 22% base rate. The combined top marginal rate on employment income is approximately 47.4% (22% + 17.6% + 7.8% social security). A personal allowance (personfradrag) of NOK 88,250 reduces the ordinary income base.
| Income Range | Tax Rate |
|---|---|
| kr 0 – kr 208K | 0% |
| kr 208K – kr 293K | 1.7% |
| kr 293K – kr 670K | 4% |
| kr 670K – kr 938K | 13.6% |
| kr 938K – kr 1.4M | 16.6% |
| kr 1.4M+ | 17.6% |
Corporate Tax
Norway levies corporate income tax at a flat rate of 22% on taxable profits. Financial sector companies (banks and insurance) pay an additional 3 percentage points, resulting in a 25% rate. The petroleum sector is subject to a special tax regime with a combined rate of 78% (22% ordinary tax + 56% special petroleum tax). Hydropower companies face a resource rent tax in addition to the standard rate.
Standard Rate
22%
Capital Gains Tax
Capital gains on shares and other financial instruments are taxed as ordinary income at 22%, but an upward adjustment factor of 1.72 applies, resulting in an effective tax rate of 37.84% on share-related gains (22% × 1.72 = 37.84%). This adjustment ensures that dividends and capital gains on shares are taxed comparably to earned income after considering the corporate tax already paid. Real property gains (other than primary residence) are taxed at the standard 22% rate without the uplift factor.
Short-Term Rate
37.8%
Long-Term Rate
37.8%
Rate
37.8%
VAT / Sales Tax
Norway applies a standard VAT (merverdiavgift or mva) rate of 25%, with reduced rates of 15% for food and 12% for certain services. Norway, as an EEA member not in the EU, has its own VAT legislation but aligns closely with EU VAT principles. Notably, Norway zero-rates newspapers, books, and electric vehicles, reflecting policy priorities around literacy and environmental sustainability.
Standard Rate
25%
Cryptocurrency Tax
Cryptocurrency is treated as an asset in Norway, and gains from disposal are taxed as ordinary income at 22%. The upward adjustment factor for shares (1.72) does not apply to crypto, making the effective rate 22% rather than 37.84%. Each sale, exchange, or use of crypto for payment is a taxable event. The FIFO (First In, First Out) method is used for cost basis calculation. Losses are fully deductible against other income.
Tax Treaties
Norway has approximately 85 double taxation treaties in force. Despite not being an EU member, Norway's treaties follow the OECD Model and provide competitive withholding rates. The Nordic Tax Convention provides special provisions among the Nordic countries. Norway participates in OECD BEPS initiatives and exchanges information under the Common Reporting Standard (CRS).
Treaty Network
85
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Norway
See how much you could save by moving here from your current country.
+$17K
Tax in United States
$24K
24.4% effective
Tax in Norway
$8K
7.8% effective
You Save
68%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
