Norwegian Tax Planning for 2026: Smart Moves to Reduce Your Bill

With Norway’s 2026 tax year bringing updates in bracket tax, PAYE thresholds, and employer contributions, now is the time to prepare your tax strategy. This detailed guide explores smart tax planning moves to reduce your liability while staying compliant with Skatteetaten’s rules.

📌 Key Changes in 2026 That Impact Tax Planning

• PAYE thresholds expected to rise to around NOK 690,000.
• Abolishment of the additional employer social security contribution for high salaries.
• Potential adjustments in bracket tax bands to reflect inflation.
• Ongoing scrutiny of exit tax rules for expats and share transfers.

📌 1. Maximize Your Minimum Deduction

In 2026, the minimum deduction (minstefradrag) remains one of the easiest ways to lower taxable income. Set at 46% of income with a cap of around NOK 95,000, it covers everyday work-related costs without requiring documentation.

📌 2. Use Personal Deduction (Personfradrag)

Every resident taxpayer is entitled to a personfradrag, set at NOK 108,550 in 2025 and expected to increase in 2026. This automatically reduces general income tax (22%).

📌 3. Deduct Interest Expenses

Mortgage and other loan interest remains fully deductible in Norway. If you plan major refinancing or new loans, ensure interest payments are structured to maximize tax savings in 2026.

📌 4. Take Advantage of Pension Contributions

Both employer and employee contributions to approved pension schemes reduce taxable income. Seniors can also benefit from reduced social security rates (5.1% instead of 7.8%).

📌 5. Consider Charitable Contributions

Donations to approved Norwegian charities can earn you a deduction up to NOK 25,000 annually. This is an easy way to reduce taxes while supporting good causes.

📌 6. Plan for Capital Gains & Dividends

Shares and dividend income are adjusted by a factor of 1.72 before being taxed at 22%, leading to an effective rate of 37.84%. Consider holding investments longer or using pension savings accounts to defer taxation.

📌 7. Be Mindful of Exit Tax Rules

If you plan to leave Norway in 2026, be aware of exit tax on unrealized gains exceeding NOK 500,000. Early planning, including treaty reviews, can help minimize exposure.

📌 Example: Tax Savings in 2026

Consider Erik, earning NOK 900,000 in 2026 with a mortgage interest of NOK 45,000:

• Gross income: NOK 900,000
• Minimum deduction: NOK 95,000
• Interest deduction: NOK 45,000
• Personal deduction: NOK 110,000
• Taxable income after deductions: NOK 650,000

By using available deductions, Erik reduces his tax liability by over NOK 40,000.

📌 Final Thoughts

Smart tax planning in Norway for 2026 involves leveraging deductions, pension savings, and understanding capital gains rules. With early preparation, you can significantly cut your tax bill and avoid unexpected liabilities.