Norwegian Tax System for Expats: What You Need to Know

Norway's tax system is transparent, digitised, and largely automatic — but it has enough moving parts to trip up new arrivals. Understanding the skattekort, knowing whether the PAYE scheme works for you, and using the Altinn portal correctly will determine whether you end up with a refund or an unexpected bill each spring.

The Skattekort: Your Tax Deduction Card

The skattekort (tax deduction card) is the document that tells your employer exactly how much tax to withhold from each payslip. You must obtain one before or immediately after starting work in Norway.

Without a skattekort, your employer is legally required to withhold 50% of your gross salary. This is not a penalty — it is a holding rate — but it ties up a large portion of your income until you file a return and claim it back. It is a situation worth avoiding.

How to Get a Skattekort

Apply through Skatteetaten, Norway's Tax Administration:

1. Go to skatteetaten.no and navigate to the tax card section for foreign workers
2. Log in with your Norwegian ID (if you have a fødselsnummer or D-number) or complete the paper form RF-1209 if you do not yet have either
3. Enter your expected annual income and any deductions you plan to claim
4. Skatteetaten issues your card digitally and sends it directly to your employer

Your employer downloads and applies it automatically — you do not hand over a physical card. Update your skattekort any time your income or circumstances change significantly.

The PAYE Scheme: Simplified Tax for New Arrivals

When you apply for a tax deduction card as a new foreign worker, you are automatically enrolled in the PAYE (Pay As You Earn) scheme. This is a simplified tax arrangement designed specifically for foreign employees.

How PAYE Works

• A flat 25% rate is withheld from your salary (including social security contributions)
• If you have an A1 certificate or equivalent from another EEA country — meaning you continue paying social insurance in your home country — the PAYE rate drops to 17.3%
• The income threshold for PAYE in 2025 was NOK 700,000 per year. If your income exceeds this, you move to the standard tax scheme
• No tax return is required at year end for PAYE participants — your tax is settled through payroll

PAYE: Who It Suits

PAYE is straightforward and means zero paperwork at year end. It works well for:

• Short-term workers (a season, a year)
• Workers without significant deductible expenses
• Anyone who wants simplicity over optimisation

PAYE: When Standard Taxation Is Better

PAYE participants cannot claim any deductions. If you have:

• A commute you pay for
• Interest on a home loan
• Significant professional expenses

...the standard tax scheme will likely result in a lower tax bill. You can opt out of PAYE and into the standard system — speak to Skatteetaten or a tax adviser.

Standard Taxation: Rates and Structure

For those on the standard scheme (or earning above the PAYE threshold), Norwegian income tax works as follows:

Base income tax: approximately 22% on all taxable income (flat)

Bracket tax (trinnskatt): a progressive surcharge on top of the base rate, applied in steps. The combined effective rate for most employed expats earning between NOK 300,000 and NOK 700,000 falls in the 30–35% range when including social security contributions. Higher earners pay more.

Social security contribution (trygdeavgift): approximately 7.8% for employees (rates can change annually — verify on skatteetaten.no)

Employer's contribution: approximately 14.1% of gross salary, paid by your employer on top of your wage. This does not come out of your pay directly but is part of the total cost of employing you.

The Standardfradrag: Standard Deduction for Foreign Workers

If you are on the standard tax scheme and choose not to claim itemised deductions, you may be entitled to the standardfradrag — a special standard deduction available to foreign employees in their first one or two years in Norway.

The standardfradrag is 10% of gross income, capped at NOK 40,000. It is claimed in place of itemised deductions, not in addition to them. For workers with few specific Norwegian deductions, it is often the simplest and most beneficial option.

It appears on your skattekort with specific codes (7300, 7350, 7500, 7550, or 7700 depending on your situation). Check with Skatteetaten when applying for your card whether you qualify.

Filing the Tax Return: Skattemelding on Altinn

If you are on the standard scheme, you file a tax return (skattemelding) each year. The deadline is typically 30 April. The return is filed on Altinn.no, Norway's government digital portal.

Most of the return is pre-filled by Skatteetaten from information supplied by your employer, bank, and other sources. You log in, review the pre-filled data, correct anything inaccurate, and submit.

Altinn Access

To log in to Altinn, you need a Norwegian electronic ID. This is typically BankID, which requires a fødselsnummer and is set up through your Norwegian bank. If you only have a D-number, access to Altinn may be limited — discuss this with Skatteetaten.

Refunds and Additional Payments

After you file (or after the PAYE year closes), Skatteetaten calculates your final tax position:

• If too much was withheld → you receive a refund, usually paid directly to your bank account in June or July
• If too little was withheld → you receive a demand for additional payment, due in autumn

Most employed workers on a correct skattekort end up close to zero. Significant deviations usually mean the income estimate on your skattekort was wrong.

Sending Money Home

Norway does not tax international bank transfers. If you are sending salary home to another country regularly, the cost is in exchange rate margins and transfer fees rather than tax.

Wise (formerly TransferWise) offers mid-market exchange rates with transparent fees, which typically results in significantly more money arriving at the destination compared to using a standard Norwegian bank international transfer. This is worth setting up early if you plan regular international transfers.

Key Resources

• skatteetaten.no/en — apply for tax card, check your tax deduction code, and file your return
• altinn.no — digital portal for your annual skattemelding
• Skatteetaten's PAYE information — skatteetaten.no/en/person/foreign/are-you-intending-to-work-in-norway/tax-deduction-cards/paye/