Norway’s 2026 budget maintains corporate tax rates while introducing targeted increases to wealth, environmental, and excise taxes, reducing electricity and fuel road taxes, expanding commuter deductions, and adjusting vehicle taxes.
Norway’s parliament passed the proposed 2026 Budget bill on 5 December 2025.
This follows Norway’s government’s presentation of its 2026 state and national budget proposals on 15 October 2025.
The bill boosts welfare, defence, and climate measures, lowers certain taxes to support households, closes loopholes and scales back EV incentives, and sets a fiscal strategy to address demographic pressures, inequality, and productivity challenges.
The key tax changes for 2026 are as follows:
Corporate Tax
The corporate tax rate remains unchanged at 22% for two years.
VAT
The three-tier VAT system (25%, 15%, 12%) remains unchanged for 2025 and 2026.
Wealth Tax and Allowances
The wealth tax undergoes significant structural changes. While the basic allowance increases from 1.76 million NOK to 1.9 million NOK (protecting more of a taxpayer’s assets), the municipal wealth tax rate rises from 0.525% to 0.75%.
Electricity Tax
The electricity tax is reduced from 12.53 øre/kWh in 2025 to 7.13 øre/kWh in 2026.
Consumer Goods Excise Duties
- Taxes on alcohol are set to increase, with spirit-based beverages over 0.7 vol.% moving from 9.03 NOK/vol.% per liter in 2025 to 9.23 NOK/vol.% per liter in 2026 (a 2.2% change).
- Taxes on tobacco products show similar movements; for example, cigars, cigarettes, and smoking tobacco all increase from 324 NOK/100 grams to 331 NOK/100 grams.
- E-liquid containing nicotine is set to increase by 2.3%.
Travel and Commuting Deductions
While the per-kilometer rate remains unchanged at 1.83 NOK, the 2026 parameters are more favorable for commuters. The minimum threshold is lowered (from 15,250 to 12,000 NOK), allowing more people to qualify for deductions, and the maximum limit is significantly raised to 120,000 NOK.
Vehicle Tax Revisions
- For most passenger cars (Tax Group a) with internal combustion engines, the new regulations are expected to result in a tax increase ranging from NOK 20,000 to NOK 30,000.
- Vans (Class 2, Tax Group b) with combustion engines are expected to increase by NOK 8,000-16,000.
- Minibuses (Group j) are also proposed to have a simplified tax structure, with the tax rate set at 23% of the passenger car tax rate.
Environmental Tax Changes
- The road tax on gasoline is decreasing by 9.4% (from 4.16 NOK/liter to 3.77 NOK/liter), and the mineral oil road tax is decreasing by 15.2%.
- The CO2 tax on both gasoline and mineral oil is increasing significantly, with gasoline rising 16.9% and the general rate for mineral oil increasing 16.6%. Furthermore, there is a substantial proposed increase of 126.2% for the CO2 tax on natural gas used by the greenhouse industry.
Emission Taxes
Taxes on certain climate gases, such as HFCs and PFCs, are set to increase by 16.7%.
