Salaries and Personnel – 2026 National Budget

The government proposes to adjust the mileage rate and the minimum amount in the travel deduction for inflation. The mileage rate will increase from NOK 1.83 to NOK 1.87 per kilometer, and the minimum deduction from NOK 15,250 to NOK 15,600.

This also affects the reimbursement of visits for commuters. A tax-free payment of NOK 1.87 per kilometer can be made to cover such travel expenses

The trade union fee deduction will increase to NOK 8,700 for 2026, up from NOK 8,250 in 2025.

The government plans to gradually raise this deduction to NOK 10,000 during the current parliamentary term.

The government proposes to introduce a tax-free allowance for youth in Svalbard, equivalent to the tax-free threshold in mainland Norway.

This means that young people aged 13 to 19 in Svalbard can earn up to NOK 100,000 tax-free.

The government proposes to reduce the social security contribution rates on wages by 0.1 percentage points in 2026, to 7.6 percent.

The rate for pensions remains at 5.1 percent.

The lower threshold for paying social security contributions is proposed to remain unchanged at NOK 99,650.

For foreigners with a withholding tax card and exemption from Norwegian social security, the tax rate in 2026 will be 17.4 percent.

The government proposes to increase the Finnmark Deduction from NOK 30,000 to NOK 45,000. This provides an individual tax relief of up to approximately NOK 2,650..

The government proposes to increase the personal allowance from NOK 108,550 to NOK 114,210.

The government proposes to reduce the parental deduction from NOK 25,000 for the first child and NOK 15,000 for each additional child, to NOK 15,000 for one child and NOK 10,000 for each additional child.

This proposed adjustment should be viewed in the context of significant reductions in the cost of childcare and after-school programs in recent years.

The government proposes that the upper limits for the standard deductions on wages, social security benefits, and pensions be adjusted according to the estimated wage and pension growth, at 4.0 percent and 3.1 percent, respectively.

As a result, the upper limit for the standard deduction on wage and social security income will increase to NOK 95,700, and the upper limit for the standard deduction on pension income will increase to NOK 75,400

The government proposes to implement a pilot scheme for a work deduction for young people. Under the proposal, approximately 100,000 individuals (8 percent) born between 1991 and 2006 and registered as liable to pay taxes in Norway as of 31 October 2025 will be randomly selected to receive a work deduction for a period of five years.

For 2026, the deduction is proposed to be up to NOK 125,000 and will be reduced by 40 percent of income exceeding NOK 345,000.

The aim is to gain insights into how a work deduction, and economic incentives in general, can influence labor market participation and working hours.

The method for valuing company cars has not been revised since 2005. Since then, the composition of the vehicle fleet has changed significantly, not least due to technological developments and tax policy.

In May 2025, the Storting requested that the Ministry of Finance ‘…ensure that the regulations provide correct benefit taxation in accordance with the principles of the Tax Act.’

In the 2026 National Budget, the government states that in the 2027 budget they will ‘…return with a full review of company car taxation, including the accuracy of the current model, the consequences for different types of vehicles, and any proposed regulatory changes.

The government proposes to allocate NOK 55.9 billion to Work Assessment Allowance (AAP) in 2026, an increase of NOK 5.8 billion.

The increase is mainly due to an expected rise in the number of recipients.

The government proposes to increase funding for labour market measures by NOK 135 million.

The funding will be allocated to labour market initiatives, including personnel resources at NAV.

The government proposes to increase funding for Permanently Adapted Work (VTA), including personnel resources at NAV, by NOK 77.3 million.

This will allow for approximately 500 new positions in 2026. The increase is in line with the government’s four-year expansion plan for VTA (2024–2027), under which VTA will be strengthened with around 2,000 new positions by the end of 2027.

In total, the government proposes to allocate NOK 2.4 billion to VTA in 2026.

The government proposes to allocate NOK 16.9 billion to unemployment benefits. This is an increase of nearly NOK 2.6 billion compared with the revised 2025 budget.

The increase is due to an expected rise in the number of recipients and higher amounts paid per recipient.

The government proposes to reduce the lump-sum grant from NOK 92,648 to NOK 60,000.

The lump-sum grant provides families with a one-time payment to cover expenses related to having a child, but it currently exceeds the estimated cost of raising a child during the first year. This reduction is estimated to save NOK 134 million in 2026.

The government proposes to increase the budget for the Labour Inspection Authority by NOK 10 million.

It also proposes to increase funding for Fair Play Bygg Norway, bringing the total grant to Fair Play Bygg to NOK 6 million in 2026.