Norway’s Budget 2027 proposes personal tax relief through lower national insurance contributions, higher income thresholds and increased deductions, while maintaining the 22% corporate tax rate. The package also adjusts VAT exemptions for electric vehicles and revises wealth tax allowances, alongside changes to R&D incentives and international tax compliance rules.
Norway’s newly unveiled 2027 Budget introduces a series of fiscal adjustments designed to foster economic growth, maintain fairness, and encourage employment while providing stability for citizens and enterprises.
Key measures include personal income tax relief, featuring elevated income thresholds for bracket taxes, a higher employment deduction, and lowered national insurance contribution rates.
Corporate tax & industry measures
- Corporate tax rate: The general corporate income tax rate remains flat at 22%.
- R&D incentive: Restructured with maximum deduction limits set at the corporate group level to prevent misuse.
- Share savings accounts: Scheme expanded to include shares and equity certificates traded on multilateral trading facilities such as Euronext Growth.
- International tax compliance: Safe Harbour rules under Pillar Two of the OECD/G20 Global Minimum Tax framework are anchored into the Supplementary Tax Act.
Climate, energy, and vehicle taxes
- VAT on electric vehicles (EVs): The threshold for VAT exemption on new electric passenger cars is lowered from NOK 300,000 to NOK 150,000.
- CO2 tax increases: The general CO₂ tax rate increases to NOK 1,900 per tonne of CO₂ in 2027 (yielding NOK 2.62 billion in gross climate revenue). Rates are also raised for greenhouse farming, coastal transport, and chemical/metallurgical processes.
- Fuel road use tax reduction: To prevent increased pump prices for motorists, the road use tax on petrol and mineral oil/biodiesel is reduced by NOK 0.50 per litre (-10.6% on petrol, -19.3% on mineral oil/biodiesel).
- Customs duty on textiles: Remaining tariffs on imported clothing and textiles are reduced to a single flat rate of 5%.
Personal income tax relief
- National insurance contributions: The contribution rate is reduced by 0.2% across income types — falling to 7.4% for wages/social security benefits and 10.6% for business income.
- Personal allowance: The general personal allowance threshold increases by 4.9% from NOK 114,540 to NOK 120,180.
- Personal tax bracket: Tax rates across all five brackets remain unchanged, but taxable income thresholds are increased by approximately 4%:
- Bracket 1 (1.7%): Starts over NOK 235,150
- Bracket 2 (4.0%): Starts over NOK 331,050
- Bracket 3 (13.7%): Starts over NOK 754,050
- Bracket 4 (16.8%): Starts over NOK 1,019,300
- Bracket 5 (17.8%): Starts over NOK 1,525,900
- Minimum standard deduction: The upper limit for employment income increases from NOK 95,700 to NOK 99,550, while the upper limit for pension income increases to NOK 77,950.
- Targeted deductions: The maximum deduction for trade union dues will increase to NOK 8,950. The pension tax deduction will also be adjusted, with a maximum deduction of NOK 40,750, to ensure that minimum pension levels remain untaxed.
Wealth taxation
The basic allowance will increase from NOK 1.9 million to NOK 1.99 million for individuals and NOK 3.98 million for married couples. Meanwhile, the Bracket 2 wealth tax threshold will remain at NOK 21.5 million, and the low-valuation threshold for primary residences will stay at NOK 14 million, with both thresholds maintained without inflation adjustment.
