What is Personskatt (Personal Income Tax)?
Norwegian personal income tax system. Flat 22% ordinary income tax on net income, plus trinnskatt (bracket tax) on gross income up to 17.6%, plus 7.9% trygdeavgift (national insurance) on earned income. Total marginal rate on highest earners can exceed 47%.
Current Rate (Inntektsår 2025)
22% flat + trinnskatt up to 17.6% + 7.9% trygdeavgift on wages
Example
A Norwegian employee earning NOK 700,000 pays: 22% on net income + trinnskatt (1.7% on NOK 208,051–292,851, 4% on NOK 292,851–670,001, 13.6% on NOK 670,001–700,000) + 7.9% trygdeavgift. Total effective rate approximately 37–38%.
How Personskatt (Personal Income Tax) works in Norway
Norwegian personal income tax is structured in two overlapping layers: ordinary income tax (alminnelig inntekt) and a separate bracket tax (trinnskatt) on gross personal income (personinntekt). Together with national insurance (trygdeavgift), the system creates marginal rates that are among the highest in the world at the top bracket.
**Layer 1: Alminnelig inntekt (ordinary income tax at 22%)**
All personal income — wages, dividends (above skjermingsfradrag, grossed up by 1.72), capital gains, rental income — is included in alminnelig inntekt, a net income concept after deducting business expenses, standard deductions (minstefradrag), interest payments, and other allowable deductions. The tax rate on alminnelig inntekt is a flat 22%.
**Layer 2: Trinnskatt (bracket tax on gross income)**
Trinnskatt applies to gross personal income (personinntekt, which is wages + business income, before most deductions). The 2025 brackets are: - Step 1: 1.7% on income above NOK 208,051 - Step 2: 4.0% on income above NOK 292,851 - Step 3: 13.6% on income above NOK 670,001 - Step 4: 16.6% on income above NOK 937,901 - Step 5: 17.6% on income above NOK 1,350,000
Trinnskatt is cumulative — each bracket applies only to the income within that band. Because trinnskatt applies to gross income (before deductions) and the ordinary income tax applies to net income, the total marginal rate for a top-bracket earner is approximately 47.4% (22% + 17.6% trinnskatt + 7.9% trygdeavgift, though there are some offsets in the calculation).
**Trygdeavgift (national insurance contribution)**
Employees and self-employed pay 7.9% trygdeavgift on earned income (wages and self-employment income). This funds old-age pension (alderspensjon), disability benefits, healthcare, and other social security. There is a low-income threshold below which trygdeavgift does not apply.
**Minstefradrag (standard deduction)**
Employees automatically receive a minstefradrag — 46% of wage income, minimum NOK 31,800, maximum NOK 104,450 (2025 figures approximate). This prevents most low-to-moderate earners from needing to itemise deductions. It is deducted from alminnelig inntekt before applying the 22% rate.
**Pre-filled tax return**
Skatteetaten pre-fills the personal tax return (skattemelding) with data from employers, banks, and pension providers. For most employed persons, the pre-filled return is correct and requires no action beyond review. Self-employed individuals and AS owners need to actively add their business income and deductions.
Related terms
Norwegian employer's social security contribution. National rate 14.1% on gross wages. Significantly reduced rates in northern and remote regions (zone 1a to zone 5) designed to encourage employment in less-populated areas. Paid by the employer, not the employee.
Norwegian system for taxing dividends and capital gains for personal shareholders of AS companies. Dividends and gains above a risk-free return (skjermingsfradrag) are grossed up by 1.72 and taxed at 22%, producing an effective rate of 37.84%. Dividends below the risk-free threshold are tax-free.
Norway's national tax authority. Manages all Norwegian taxes including personal income tax, corporate tax, MVA (VAT), wealth tax, and inheritance tax. Digital services via skatteetaten.no. Business filings use Altinn.no portal.
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