Taxation of Company Cars in Norway: 2025 Rules Explained

A company car may seem like a great perk, but in Norway it also comes with clear tax implications. For 2025, Skatteetaten (the Norwegian Tax Administration) continues to enforce strict valuation rules. This guide explains how company cars are taxed in Norway in 2025, including calculation methods, rates, exemptions, and tips to reduce your tax burden.

🚗 What Counts as a Taxable Company Car Benefit?

Any employee who receives a company vehicle for personal use — even partly — must declare a taxable benefit. This includes:

• Cars owned or leased by the employer and made available for private driving.
• Electric vehicles (EVs) and hybrid cars provided by the employer.
• Employer-covered fuel or charging costs.
• Company vehicles used outside work hours.

📊 How the Taxable Value Is Calculated in 2025

The taxable value of a company car in Norway is standardized and not based on actual mileage. For 2025, the calculation uses:

• Base Rate: 30% of the car’s list price up to NOK 338,800.
• Additional Rate: 20% of the list price exceeding NOK 338,800.

For example, if the list price is NOK 500,000:

• 30% of NOK 338,800 = NOK 101,640
• 20% of NOK 161,200 = NOK 32,240
• Total taxable value = NOK 133,880

⚡ Special Rules for Electric Vehicles (EVs)

To encourage eco-friendly transport, EVs enjoy a reduced valuation:

• Taxable value for EVs is set at 80% of the normal calculated value.
• Example: A NOK 500,000 EV has a taxable benefit of NOK 107,104 instead of NOK 133,880.
• However, employer-paid charging at home is taxable as an additional benefit.

⛽ Fuel and Charging Costs

If your employer covers fuel or charging costs, the taxable value increases. Rules for 2025:

• Employer-paid fuel: Added to the taxable benefit.
• Employer-paid EV charging: Also taxable unless performed exclusively at the workplace.
• Employees must track private mileage if reimbursed fuel is excluded from taxable income.

📅 Temporary Car Use

Even if you use a company car for just a few months, the benefit is calculated for the entire year on a pro-rata basis. Employers must report the value through monthly payroll submissions.

🧾 Reporting Company Car Benefits

Employers report the taxable benefit automatically to Skatteetaten. Employees should:

• Review the pre-filled tax return for accuracy.
• Ensure all benefits (fuel, EV charging, parking) are correctly included.
• Amend errors before the April 30, 2026 deadline to avoid penalties.

⚠️ Risks of Misreporting

Underreporting company car benefits can trigger tax audits and penalties. In 2025, Skatteetaten continues to focus on:

• High-value cars and EVs with underreported taxable values.
• Employer-covered fuel not included in payroll reporting.
• Employees claiming “work-only” use without proper mileage logs.

✅ Tips to Minimize Tax Burden

• Opt for an EV to benefit from the 80% rule.
• Track private vs. business mileage if reimbursed fuel is excluded.
• Negotiate a car allowance instead of a company car if it results in lower taxation.
• Keep detailed documentation of usage, especially if claiming reduced private use.