The proposed budget includes increased thresholds for the personal allowance and the minimum standard deduction, as well as adjustments to the tax credit for pension income. The tax rate on ordinary income remains unchanged at 22 percent for both individuals and businesses. The social security contribution rate is slightly reduced, and minor adjustments are introduced to the bracket tax and marginal tax classes.

The basic allowance in the wealth tax is increased from NOK 1.76 million to NOK 1.9 million (NOK 3.8 million for married couples). A deferral scheme is also introduced for the payment of wealth tax for individuals holding business-related assets, allowing deferral for up to three years with interest set at the policy rate plus 5 percentage points

A new pilot initiative aims to help more young people enter the workforce: 100,000 individuals between the ages of 20 and 35 will receive an additional income deduction of NOK 125,000. The government has allocated NOK 500 million to the project in 2026.

Amendments are proposed to the rules governing repayment of paid-in capital, limiting tax exemption to the shareholder’s own cost basis. The measure aims to prevent undesirable tax planning and will take effect from 2027.

The rules governing when Norway’s wealth tax liability ends are clarified. From the 2026 income year, the obligation to pay wealth tax will be conditional on the taxpayer being resident in Norway on 31 December of the year preceding the tax assessment year. 

New rules will be introduced for financial institutions with operations abroad, limiting deductions for debt and interest expenses when income and assets are not taxed in Norway under a tax treaty. This is expected to increase tax revenues.

Interest and equity income in investment funds will be exempt from taxation within the fund, but a standard taxation of 1 percent on received dividends will be introduced. The changes apply from the 2026 income year.

The government proposes to eliminate the possibility of merging limited liability companies into housing cooperatives without taxation. The change will take effect from 15 October 2025, with certain transitional rules for projects already underway. The aim is to prevent erosion of the tax base and ensure increased tax revenues, particularly from development projects. Opinions are divided on how this will impact housing construction going forward.

Currently, the sale and leasing of electric passenger vehicles are exempt from VAT for amounts up to NOK 500,000.

The government proposes to reduce this threshold to NOK 300,000 from 1 January 2026. This change is expected to increase state revenues, and the government has indicated that the exemption could be fully phased out from 2027. The rationale is that electric vehicles now account for nearly all new cars, and the exemption is viewed as a general subsidy for car purchases rather than support for other, more environmentally friendly forms of transport.

The government proposes to limit the right to deduct VAT on claims against related companies, effective from 1 January 2026. This will only apply to related parties with a 90 percent ownership stake, and the right to deduct losses will lapse after 24 months.

Changes are proposed to the VAT rules for remotely supplied services between a head office and its branch, effective from 1 July 2026.

The government’s proposal aims to address a ‘gap’ in the tax system affecting multinational groups when the group purchases remotely supplied services from external companies, due to differing VAT practices across countries.

Under the new proposal, there will be an obligation to calculate VAT on remotely supplied services when the recipient (e.g., the parent company) is resident outside Norway, provided the service is used in Norway by the same legal entity (e.g., a branch). This obligation applies when the service is used by a business or public entity resident in Norway. For certain sectors, particularly the financial industry, this may have significant economic consequences, as the right to deduct VAT is limited

There is political interest in reducing VAT on food to support families with children and low-income households, but analyses show that such a reduction would benefit everyone, and the impact on cross-border trade would be minimal. The government therefore believes that support for vulnerable groups should be targeted through other measures. This proposal has consequently been shelved.