Bracket Tax Rates in Norway for 2025: What Each Income Band Pays

Norway’s bracket tax system plays a central role in determining how much income tax individuals pay each year. For 2025, updated income thresholds and rates will affect both residents and non-residents earning taxable income in Norway. This detailed guide explains the 2025 Norwegian bracket tax rates, income bands, and what you can expect to pay.

📊 Overview of Norway’s Bracket Tax

The Norwegian income tax system is based on a dual model:

• General Income: Taxed at a flat rate of 22% after deductions.
• Personal Income: Subject to progressive bracket tax rates depending on income levels.

The bracket tax applies in addition to the general income tax, making it important for taxpayers to understand how each income band affects their final liability.

💰 Bracket Tax Rates in Norway for 2025

Below is the official bracket tax schedule for 2025, showing each band and its corresponding rate:

Income Range (NOK)	Bracket Tax Rate
217,400 – 306,050	1.7%
306,051 – 697,150	4.0%
697,151 – 942,400	13.7%
942,401 – 1,410,750	16.7%
1,410,751+	17.7%

🧾 Example Calculation

Suppose a taxpayer earns a personal income of NOK 900,000 in 2025:

• First NOK 217,400: No bracket tax
• NOK 217,401 – 306,050: Taxed at 1.7%
• NOK 306,051 – 697,150: Taxed at 4.0%
• NOK 697,151 – 900,000: Taxed at 13.7%

Combined with the 22% general income tax, this structure ensures that higher incomes pay proportionally more.

⚖️ Interaction with General Income Tax

While the bracket tax targets personal income, the general income tax of 22% applies to net income after deductions. This dual system ensures:

• High earners contribute proportionally more to the welfare system.
• Deductions such as mortgage interest, union dues, and charitable contributions lower general income tax liability.
• Non-resident taxpayers typically only pay on Norwegian-sourced income.

📌 Key Takeaways for 2025

• The top bracket rate is 17.7%, applying to incomes above NOK 1,410,750.
• Bracket tax is progressive and stacked; each level applies only to income within its band.
• Social security contributions (7.8% for employees) apply on top of bracket tax.
• Strategic use of deductions can significantly reduce general income tax, though bracket tax is less flexible.

✅ Conclusion

The Norwegian bracket tax system in 2025 ensures fairness through progressive taxation while maintaining a flat general income tax. Understanding where your income falls within the brackets helps you estimate your tax liability and plan ahead. Whether you are a salaried worker, self-employed, or a non-resident earning income in Norway, staying informed is essential to avoid surprises at tax time.