Tax rates in Norway for employees

Tax rates in Norway for employees

by ecovisnorway

Tax rates for wage receivers in Norway.

The Norwegian tax system is progressive. It consists of different elements that combined is the tax on income for an employee.

Figures for 2022

Tax on ordinary income
Persons 22 %
Persons in Finnmmark and Troms 18,5 %
Bracket tax
Level 1 – Amounts exceeding NOK 190 350 1,7 %
Level 2 – Amounts exceeding NOK 267 900 4,0 %
Level 3 – Amounts exceeding NOK 643 800 13,4 %*
Level 4 – Amounts exceeding NOK 969 200 16,4 %
Level 5 – Amounts exceeding NOK 2 000 000 17,4 %

*For person living in Troms and Finnmark, the rate is 11.4%.

National Insurance contribution
Earned income 8,0 %
Pension income 5,1 %
Income from self-employment 11,2 %
Lower limit for paying national insurance contribution NOK 64 650
Wealth Tax
State NOK 0 – 1 700 000 0 %
State NOK 1 700 001 – 20 000 000 0,25 %
State NOK 20 000 001 and over 0,4 %
Municipality (Kommune) NOK 0 – 1 700 000 0 %
Municipality (Kommune) NOK 1 700 001 and over 0,7 %

For persons not tax resident in Norway there are other rules.

Other tax rates
PAYE (Pay As You Earn) for foreign workers* 25 %
PAYE (Pay As You Earn) for foreign workers* 17 %
Foreign artists and athletes 15 %
Tax on pension paid to persons not resident in Norway 15 %
Tax on dividends paid to shareholders not resident in Norway (and residing in a lower tax rate country, according to the tax treaty with that specific country) 25 %

*The PAYE scheme has a maximum limit of NOK 643 800 in income per year (2022). Meaning that if an employee earns more than that he/she can not be enrolled in the PAYE scheme and must actively change the scheme to progressive income taxation.

With all these components taken into account, these are the maximum effective marginal tax rates:

Gross salary 47,4 %
Dividend 49,5 %

Deductions may also be eligible and vary depending on your situation and occupation.

The following income levels have the corresponding tax rate. The actual deduction of taxes is done based on a tax card. Please note that this is estimations and that actual figures may differ. Monthly tax deduction might differ from actual tax rate. Overdeducted or underdeducted tax will be reconciliated in the coming year.

Salary Tax Tax percentage
50000 0 0,0 %
100000 8 000 8,0 %
150000 17 005 11,3 %
200000 27109 13,6 %
250000 39010 15,6 %
300000 55598 18,5 %
350000 72598 20,7 %
400000 89598 22,4 %
450000 106598 23,7 %
500000 123598 24,7 %
550000 140598 25,6 %
600000 157598 26,3 %
700000 196881 28,1 %
800000 240281 30,0 %
900000 283681 31,5 %
1000000 328005 32,8 %
2000000 792005 39,6 %
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