Norway | Employment Tax | Norway MOF proposes updated 2025 tax rates, deductions

Employment Tax

Norway | Employment Tax | Norway MOF proposes updated 2025 tax rates, deductions

Summary

The Norwegian Ministry of Finance October 7 announced proposals for 2025 tax rates and deductions.

The detail

The proposals include measures to:

1. increase the maximum tax deduction for pension income to 35,600 Norwegian kroner from 34,350 kroner;
2. increase the commuter deduction to 1.83 krone per kilometer from 1.76 krone per kilometer;
3. reduce the social security contribution rate on wages to 7.7 percent from 7.8 percent, and on other business income to 10.9 percent from 11 percent;
4. continue the 32.1 percent ground rent tax on wind power, for an effective 25 percent tax rate, and continue the 57.7 ground rent tax on hydropower;
5. continue the 47.4 percent maximum individual tax rate for taxpayers’ wage income, excluding employers’ tax, and increase the effective marginal tax rate for pension income to 44.8 percent from 44.7 percent;
6. continue the 25 percent nonresident workers’ withholding tax rate.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Rune Strømhylden
Director

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