Finance Minister Jens Stoltenberg has presented Norway's Revised National Budget for 2026, introducing targeted tax relief for pensioners and homeowners while addressing unexpected revenue impacts from recent policy changes. The modest adjustments aim to protect households during economic uncertainty without compromising fiscal stability.
Finance Minister Jens Stoltenberg has unveiled Norway’s Revised National Budget for 2026, emphasising economic stability amid global uncertainties. With ongoing trade tensions and conflict in the Middle East creating volatility, the government has opted for modest tax adjustments rather than sweeping reforms.
While there is no broad overhaul of corporate income tax rates, the budget revision includes significant sector-specific changes and duty reliefs that impact business operations.
The revised budget includes targeted relief measures for pensioners, adjustments to wealth tax thresholds, and several technical amendments related to CO2 taxation. Overall, these changes are expected to reduce state revenues by approximately NOK 1.1 billion in full-year impact.
Protecting minimum pensioners from tax bills
The most significant change addresses an unintended consequence of higher-than-expected inflation. Under current rules, minimum pensioners would have faced tax bills in 2026 due to wage and price growth exceeding autumn forecasts, which automatically increased pension levels.
To prevent this, the government proposes raising the pension tax credit from NOK 37,100 to NOK 37,600, with corresponding threshold adjustments and a 17.4% reduction rate in stage one. This ensures the minimum number of pensioners remain exempt from taxation. The measure benefits anyone with pension income up to NOK 436,850 and will cost the state approximately NOK 265 million annually.
Wealth tax correction for primary homes
Last autumn’s updated home valuation model for wealth tax purposes aimed to create fairer assessments without increasing revenue. However, January 2026 estimates revealed the new model would generate NOK 550 million more than anticipated.
The government’s solution raises the threshold for the lowest valuation from NOK 10 million to NOK 14 million, effective for the 2026 income year. Primary homes valued below NOK 14 million will now be assessed at 25% of market value, while amounts exceeding this threshold remain at 70% valuation.
Fuel tax relief amid energy crisis
The Middle East conflict has driven sharp increases in global oil and gas prices, hitting Norwegian consumers hard at the pump. Parliament responded on 26 March 2026 by eliminating the road tax from 1 April through 31 August 2026. This temporary relief, combined with electricity subsidies, represents NOK 15.5 billion in reduced revenue compared to the adopted budget. However, the Finance Ministry acknowledges that portions of the fuel tax cuts, particularly CO2 reductions for mineral oil, likely violate EEA state aid regulations.
Additional changes
- VAT on services from abroad: From 1 July 2026, new VAT rules take effect for international companies purchasing remotely delivered services outside Norway. Businesses must actively demonstrate they lack VAT deduction or refund eligibility abroad for exemptions to apply.
- Customs registration for CBAM: Companies requiring identification numbers under the EU’s Carbon Border Adjustment Mechanism (CBAM) must now register with the Norwegian Customs Administration. Establishing this registry will cost approximately NOK 19 million excluding VAT.
- Carbon tax adjustments: The government also proposes backdating the implementation of CO2 tax exemptions for quota-obligated companies to 1 January 2026, with refunds covering January and February. Additionally, the CO2 tax introduction for non-quota companies with chemical and metallurgical processes using natural gas and LPG has been postponed until 1 January 2027.
- VAT and electricity: While high electricity prices have increased government revenue through VAT and resource rent taxes on hydropower—contributing to a 5 billion NOK structural revenue boost—this is largely offset by the 10 billion NOK spent on support schemes for consumers.
Earlier, Norway’s parliament passed the proposed 2026 Budget bill on 5 December 2025.
