How income tax works in Norway
Norway taxes residents on worldwide income. Salary faces three layers at once: 22% general tax on net income after deductions, step tax on gross income in five bands, and social contribution on wages.
Step tax runs 1.7% from NOK 226,100, 4% from NOK 318,301, 13.7% from NOK 725,051, 16.8% from NOK 980,101 and 17.8% above NOK 1,467,200. Combined with 22% and 7.6%, the top margin on wages reaches 47.4%.
A personal allowance of NOK 114,540 and a 46% minimum deduction shield ordinary pay. Employers withhold through payroll, and the spring assessment settles deductions, wealth and final balances.
Income tax brackets in Norway
| Bracket | Rate | Notes |
|---|---|---|
| Up to NOK 226,100 | 29.6% | Combined marginal on wages incl. 22% general tax and 7.6% social contribution |
| NOK 226,101 to NOK 318,300 | 31.3% | Plus first step-tax layer, allowances excluded |
| NOK 318,301 to NOK 725,050 | 33.6% | Plus second step-tax layer, allowances excluded |
| NOK 725,051 to NOK 980,100 | 43.3% | Plus third step-tax layer, allowances excluded |
| NOK 980,101 to NOK 1,467,200 | 46.4% | Plus fourth step-tax layer, allowances excluded |
| NOK 1,467,201 and above | 47.4% | Top combined margin on wages before allowances |
Tax rates at a glance
- General income tax
- 22%Flat
- Top step-tax layer
- 17.8%
- Social contribution
- 7.6%
- Personal allowance
- NOK 114,540
- Minimum deduction
- 46% to NOK 95,700
- Foreign-worker PAYE
- 25%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- Residence uses rolling windows, not calendar years. More than 183 days in any twelve-month span, or 270 in any thirty-six months, brings worldwide taxation.
- Long stayers face the four-year rule. Ten years of residence in the last fifteen keeps global liability for three years after leaving unless days and homes stay minimal.
- Pension and business income pay different social rates. Wages pay 7.6%, other business income 10.8% and pensions 5.1%, so the combined margin varies by income type.
- Short assignments can use 25% flat PAYE instead of ordinary assessment. The election suits some foreign workers but blocks deductions and allowances.
Frequently asked questions
Do expats pay income tax in Norway?
Yes, if resident or working in Norway. Presence above 183 days in any twelve months brings worldwide taxation, while short stays may use 25% flat PAYE.
What is the top income tax rate in Norway?
About 47.4% combined at the margin on wages: 22% general tax plus 17.8% top step tax plus 7.6% social contribution.
How does step tax work?
It adds five progressive layers on gross salary from 1.7% to 17.8%, on top of the flat 22% general tax and social contributions.
What income is tax-free in Norway?
A personal allowance of NOK 114,540 plus a 46% minimum deduction up to NOK 95,700 shields the first slice of ordinary earnings.