Norway - Changes in tax rates and social security rates
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Change in personal deductions and minimum deductions for 2024
There is an increase in the personal allowance from NOK 79,600 to NOK 88,250. The government has also continued the upper limit for the minimum deductions at NOK 104,450 for salary and NOK 86,250 for pension respectively. The rates for the minimum deduction are also to remain unchanged at 46% for salary and 40% for pension.
New tax rates and brackets for 2024
| Step | Income from | Income to | Percentage |
|---|---|---|---|
| 1 | 0 | 208,050 | 0 |
| 2 | 208,051 | 292,850 | 1.7 |
| 3 | 292,851 | 670,000 | 4 |
| 4 | 670,001 | 937,900 | 13.6 |
| 5 | 937,901 | 1,350,000 | 16.6 |
| 6 | 1,350,001 | 999,999,999,999 | 17.6 |
Reduction in social security contributions for 2024
National Insurance contributions on wages reduced by 0.1%, thus reducing it from 7.9% to 7.8%.
Change in additional employer’s contribution for 2024
The Government will also begin to phase out the temporary additional employer’s national insurance contribution of 5%, which was introduced in the 2023 Budget, by increasing the threshold from NOK 750,000 to NOK 850,000.
Changes in tax-free allowances for 2024
- The tax-free subsistence allowance for accommodation in temporary workers’ sheds has increased from NOK 250 to NOK 400.
- The tax-free subsistence allowance for long-distance lorry drivers has increased from NOK 350 to NOK 400.
- For non-taxable allowance for travel between home and work, the mileage rate has been increased from NOK 1.70 to NOK 1.76. The lower allowance threshold has also increased from NOK 14,400 to NOK 14,950.
Travel deductions (travels to/from work and home visits) have a total, upper threshold of NOK 97,000 minus the non-deductible amount of NOK 14,950. The limitation applies to travels both within and outside the EEA area, and it includes actual expenses for road tolls, ferries, and air travel, etc. - Below tax-free daily subsistence rates remain unchanged for 2024:
- Travels between 6 and 12 hours: NOK 200 (the state rate that is often used is NOK 369, i.e. NOK 200 of that is tax free, the rest is taxable)
- Travels over 12 hours without overnight stay: NOK 400 (the state rate that is often used is NOK 686, i.e., NOK 400 is tax free, the rest is taxable)
- Travels with overnight stay at the hotel: NOK 658 (the state rate that is often used is NOK 940 i.e., NOK 658 is tax free, the rest is taxable)
- Travels with overnight stay in other accommodation than hotel without cooking facilities: NOK 400
- Travels with overnight stay in private accommodation or other accommodation with cooking facilities: NOK 102
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
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