What are the Norwegian tax classes for personal income tax?
Norway's personal income tax has two main classes: Class 1 (standard, applies to almost everyone) and Class 2 (higher personal deduction for single-income households, largely abolished after 2019 changes). Most business owners and employees are in Class 1. The skattekort (tax deduction card) determines how much PAYE is withheld by employers.
Detailed Explanation
Norway's personal income tax classification system is significantly simpler than in many other countries. The concept of 'tax classes' is less central in Norway than in, say, Germany or the UK, and following the 2019 tax reform, Class 2 is largely obsolete for new filers.
Class 1 — Standard tax class
Almost all Norwegian taxpayers are in Skatteklasse 1. This includes: - Single individuals - Married individuals filing independently (the standard since individual taxation was introduced) - Business owners and sole traders (ENK) - AS directors and shareholders - Students and pensioners
Class 1 applies the standard deductions and tax rates: minstefradrag (standard deduction: 46% of wages, max approximately NOK 104,450), personfradrag (personal allowance approximately NOK 56,950), and the full trinnskatt and trygdeavgift rates.
Class 2 — Largely abolished
Skatteklasse 2 was historically available to: - Single parents (enslige forsørgere) - Married couples where one spouse had no income
Class 2 provided a higher personfradrag (approximately double Class 1), effectively meaning the non-working spouse's allowance was transferred to the working spouse.
However, since 2019, Class 2 is only available to very specific households and is no longer automatically applicable. The shift to individual (independent) taxation for married couples means that most households benefit more from each spouse filing separately (Class 1) and each using their own personfradrag.
For practical purposes: if you are the founder and sole director of a Norwegian AS, you are in Class 1.
What the tax class affects
The tax class primarily affects: 1. Personfradrag (personal allowance deducted from alminnelig inntekt before applying 22%): Class 1 approximately NOK 56,950; Class 2 approximately double (but largely irrelevant now). 2. Skattekort calculation
Skatteetaten uses the tax class when calculating the skattekort (tax deduction card) — the card that tells employers how much income tax to withhold each month.
The skattekort system
The skattekort (tax deduction card) is the mechanism by which PAYE (pay-as-you-earn) income tax withholding works in Norway. Skatteetaten issues a new skattekort each year in late November/December for the following year, sent directly to Altinn and automatically available to all employers.
The skattekort specifies either: - Tabelltrekk
withholding based on a tax table (e.g. Table 7100 for annual income of NOK X) — the employer uses the table to withhold the right amount each month - **Prosenttrekk**: a flat percentage withholding rate (used for secondary income, pension income, etc.)
For founders paying themselves a salary from their AS: 1. Skatteetaten calculates the expected annual salary 2. Issues a skattekort specifying the appropriate table number 3. The AS's payroll system automatically applies the withholding rate from the table 4. Each month, the correct tax amount is deducted from gross salary and held in the skattetrekkskonto
Adjusting your skattekort
If your income changes significantly during the year (e.g. you take a larger salary or receive additional income), you can request an updated skattekort via Min skatt on skatteetaten.no. Updating ensures you withhold the correct amount and avoid a large balance on the final assessment.
Why founders should register correctly
New AS directors sometimes forget to update their skattekort after forming a company. If no skattekort is registered, the payroll system defaults to 50% withholding — which may be correct for high earners but creates a cash flow problem for typical salaries. Retrieve the current skattekort via Altinn as soon as you start paying yourself.
Frikort — the low-income exemption card
Individuals earning below a certain threshold can apply for a frikort (exemption card): in 2025, earnings below approximately NOK 60,000/year are exempt from income tax. Those with a frikort have zero income tax deducted until the frikort threshold is used up. Commonly used by students and young workers with part-time jobs.
Source: https://www.skatteetaten.no/person/skatt/skattekort/
Real-World Examples
New AS director forgetting to set up skattekort
Tom forms TomTech AS in March and starts paying himself NOK 40,000/month salary. He does not retrieve his skattekort from Altinn. The AS payroll system defaults to 50% withholding. Tom has NOK 20,000/month withheld — approximately NOK 5,000 more than his correct withholding. He overpays tax all year and receives a refund the following October. He should have retrieved his skattekort immediately after deciding his salary level.
Mid-year salary increase triggering underpayment
Lena starts the year paying herself NOK 500,000 salary (skattekort calibrated for this). In June, a major contract comes in and she increases salary to NOK 900,000 annualised. Her skattekort is calibrated for the lower salary — she is under-withholding. She requests an updated skattekort via Min skatt, adjusting the table to the higher income level. Without this adjustment, she would owe a large final assessment balance in October/November.
Common Mistakes to Avoid
- Not retrieving the skattekort from Altinn when starting salary — defaulting to 50% withholding ties up unnecessary cash.
- Ignoring Skatteetaten's automated skattekort update notices — the updated card usually reflects a Skatteetaten estimate of your income, which may differ from reality.
- Assuming Class 2 still applies for single-income married couples — since 2019, Class 2 is rarely applicable. Most couples file independently as Class 1.
- Not adjusting the skattekort mid-year after a significant income change — this leads to large final assessment balances that may attract interest.
Frequently Asked Questions
How do I get my skattekort?
Skatteetaten automatically sends your skattekort to Altinn in late November/December for the following year. Log in to altinn.no and navigate to 'Min innboks' — the card will be there. If you have an employer, it is automatically available to them via the A-melding system. If you form a new AS mid-year, you may need to request a new card via Min skatt.
What is the personfradrag?
The personfradrag is a personal allowance deducted from alminnelig inntekt before applying the 22% ordinary income tax. In 2025 it is approximately NOK 56,950 for Class 1 taxpayers. If your alminnelig inntekt is less than the personfradrag, you pay no ordinary income tax (though trinnskatt and trygdeavgift still apply on positive income).
Do married couples in Norway file tax returns jointly or separately?
Norway moved to individual taxation for most purposes. Married couples file separately (each with their own skattemelding). They do not combine income on a joint return. Each spouse uses their own personfradrag and their own tax rates. The main remnant of joint taxation is the Class 2 personfradrag for qualifying single-income households.
Can a foreign director of a Norwegian AS get a skattekort?
Foreign nationals working for a Norwegian AS and earning wages must get a D-nummer (foreign national identity number) from BRREG/Skatteetaten. Once registered with a D-nummer, they can apply for a skattekort via Skatteetaten. Without a skattekort, the AS must withhold 25% of wages.
What is the frikort threshold in 2025?
In 2025, the frikort threshold is approximately NOK 60,000 annual income. Anyone expecting less than this can apply for a frikort, meaning their employer withholds zero income tax up to that amount. Once the threshold is reached, normal withholding begins. Commonly used by students with part-time jobs.
Practical Tips
- Check your skattekort every January on Altinn to ensure it reflects your expected annual income — Skatteetaten may have calibrated it based on the prior year which could be significantly different.
- If you significantly change your salary mid-year, update your skattekort via Min skatt — this prevents a large unexpected tax bill in October.
- For AS directors paying themselves for the first time, retrieve the skattekort from Altinn before the first payroll run — the automatic share with your payroll system via the employer Organisasjonsnummer.
- Remember that trinnskatt is calculated on gross personinntekt (before deductions) while the 22% rate is on net alminnelig inntekt (after deductions). Ensure your payroll system handles this distinction correctly.
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