Filing taxes in Norway can feel overwhelming. To help, this guide provides a detailed step‑by‑step example of Norwegian tax computation for 2025. By walking through salary, allowances, deductions, and bracket tax rates, you’ll see exactly how Skatteetaten calculates your final tax liability.
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📌 Step 1: Establishing Personal Income
Personal income is the foundation for bracket tax and social security contributions. In this example:
- Salary: NOK 900,000
- Company car (taxable benefit): NOK 94,990
- Total personal income: NOK 994,990
📌 Step 2: Adding Capital Income
Capital income is taxed at a flat 22%. In our example:
- Capital gains (e.g., dividends): NOK 5,000
- Adjustment factor (×1.72): NOK 8,600
- Interest income: NOK 2,500
Total additional taxable capital income = NOK 11,100.
📌 Step 3: Applying Minimum Deduction
The minimum deduction (minstefradrag) is 46% of employment income, capped at NOK 92,200. Here:
- Minimum deduction: NOK 92,200
- Mortgage interest expenses: NOK 40,000
- Net ordinary income: NOK 874,090
📌 Step 4: Applying Personal Deduction
All taxpayers receive a personal deduction (personfradrag), set at NOK 108,550 in 2025.
- Net income before deduction: NOK 874,090
- Minus personal deduction: NOK 108,550
- Taxable ordinary income: NOK 765,540
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📌 Step 5: Calculating Bracket Tax (Trinnskatt)
Bracket tax applies progressively to personal income. For 2025:
| Income Band (NOK) | Rate | Tax |
|---|---|---|
| 217,400 – 306,050 | 1.7% | ≈ NOK 1,504 |
| 306,051 – 697,150 | 4.0% | ≈ NOK 15,640 |
| 697,151 – 942,400 | 13.7% | ≈ NOK 33,595 |
| 942,401 – 1,410,750 | 16.7% | ≈ NOK 8,793 |
| Above 1,410,750 | 17.7% | N/A in this example |
Total bracket tax: NOK 59,532
📌 Step 6: Social Security Contributions
Employees pay 7.8% of personal income toward social security:
- 7.8% × NOK 994,990 = NOK 77,609
📌 Step 7: General Income Tax
Ordinary income is taxed at a flat 22%:
- 22% × NOK 765,540 = NOK 168,419
📌 Step 8: Final Tax Liability
Adding all components together:
- Bracket tax: NOK 59,532
- Social security: NOK 77,609
- General income tax: NOK 168,419
Total tax: NOK 305,560
📌 Step 9: Net Take‑Home Income
After paying taxes and contributions:
- Gross salary: NOK 900,000
- Minus total tax: NOK 305,560
- Net cash income: NOK 594,440
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