Tax guide for Americans in Norway

US citizens living in Norway must file both US and Norwegian tax returns annually. Norway taxes residents on worldwide income at a flat 22% base rate, plus a progressive bracket tax of 1.7%–17.8%.

The US-Norway tax treaty, signed in 1971, prevents double taxation through foreign tax credits and reduced withholding rates. For many US expats in Norway, the Foreign Tax Credit can substantially reduce or eliminate US tax owed, subject to the credit's limitations, since Norway's tax rates are among the highest in Europe.

Here's a snapshot of the key numbers before diving in.

Resident vs. non-resident of Norway

The Norwegian tax system distinguishes between tax residents and non-residents, each subject to different obligations. Your Norway tax residency status determines whether Norway taxes your worldwide income or only your Norwegian-source income.

• If you are considered a tax resident of Norway, you are liable to pay tax to the Norwegian tax authorities on your worldwide income. This includes income earned both inside and outside Norway. Tax residents benefit from the Norwegian social security system and are subject to various deductions and allowances that may reduce their taxable income.
• Non-residents are only taxed on their Norwegian source income. This includes income from employment in Norway, business income from Norwegian activities, and income from real estate located in Norway. Non-residents are not entitled to the same deductions and allowances as residents.

Who can be considered a resident of Norway?

Determining residency status is essential for tax purposes. Norway uses specific criteria to classify individuals as tax residents:

• You are considered a tax resident of Norway if you are present in the country for more than 183 days in any 12 months. This does not have to be a continuous period, but the total number of days within a 12-month window.
• Alternatively, if you stay in Norway for more than 270 days in 36 months, you will also be considered a tax resident. Similar to the 183-day rule, these days do not have to be consecutive.
  Once you meet either of these criteria, you are considered a tax resident and are subject to tax on your worldwide income.

NOTE! The day of arrival and the day of departure both count as days spent in Norway.

Types of taxes in Norway

The Norwegian tax system is comprehensive and includes several types of taxes that apply to both individuals and corporations. Here is what you need to know about the current rates for 2025 and 2026.

General income tax

In Norway, the general income tax applies to all taxable income, including income from employment, business profits, pensions, and capital income such as interest, dividends, and rental income.

Norway taxes ordinary income at 22%, but employment and pension income can also face bracket tax, and gains and dividends on shares are taxed at a higher effective rate.

Personal income tax rates

On top of the 22% base rate, Norway applies a progressive bracket tax to personal income from employment and pensions. The Norway bracket tax 2026 rates, per Skatteetaten, are:

 

Combined with the 22% base rate, the top marginal Norway income tax rate on employment income reaches approximately 47.4% in 2026.

Value-added tax

Norway's standard VAT rate is 25%, applying to most sales and services. Reduced rates apply to specific categories: 15% on food sold in grocery stores, and 12% on passenger transport, hotel accommodation, and admission to cinemas, museums, and amusement parks.

Norway wealth tax 2026

Norway is one of the few countries that still levies a wealth tax on net worth. For 2026, the threshold for a single taxpayer is NOK 1,900,000 (NOK 3,800,000 for married couples). The combined municipal and state rate is approximately 1.0%–1.1%, with the state rate rising to 0.75% on net wealth above NOK 21.5 million.

Sources: Norwegian Government Budget 2025–2026, PwC Tax Summaries.

Norway property taxes

Property tax is set by each municipality. The rate can range from 0.1% to 0.7%, and for residential properties and holiday homes, the maximum rate is 0.4%.

Inheritance and gift taxes

Norway abolished its inheritance and gift tax in January 2014. Income generated by inherited assets, such as dividends or rental income, may still be subject to income or capital gains tax.

PAYE scheme for foreign workers

Taxes in Norway for foreigners work differently from those for residents. Foreign workers who qualify can use the PAYE scheme, but it is not automatic. PAYE withholds 25% of salary (or 17.4% if you are exempt from Norwegian national insurance), and you normally do not file a regular tax return for PAYE income.

The scheme applies to non-tax-resident workers earning under NOK 725,050 (2026 threshold). No deductions are available, and the employer deducts the final tax in Norway for foreigners at source.

Workers can opt out and switch to the standard progressive system to claim deductions such as mortgage interest, which is worth considering when calculating overall taxes in Norway for foreigners.

Filing income tax returns in Norway

Understanding your filing obligations is the first step to staying compliant with Norwegian tax law.

When to file tax returns?

In Norway, the tax year is based on the calendar year and runs from January 1 to December 31. Individuals normally file by 30 April. Sole proprietorships and companies generally file by 31 May, with separate rules for some business cases.

Residents and non-residents who have earned income in Norway are required to file a tax return to report their income, deductions, and taxes paid throughout the tax year.

The Norwegian Tax Administration (Skatteetaten) usually sends out pre-completed tax returns in March based on income and deductions reported by employers, financial institutions, and other third parties.

Taxpayers are responsible for verifying, correcting, and adding to this information as necessary before filing their final tax return by the applicable deadline.

Types of income in Norway

The Norwegian tax system includes different types of income, each with its own set of taxation rules. Understanding these distinctions is critical to accurately reporting income and ensuring compliance with Norwegian tax laws.

Employment income

Employment income is the most common type of income and includes wages, salaries, bonuses, allowances, and other forms of compensation received for services rendered. In Norway, all earned income is subject to income tax, which includes both the general income tax rate and personal income tax brackets.

Benefits in kind, such as company cars, free or subsidized housing, and interest-free loans, are also considered employment income and are valued and taxed accordingly.

The Norwegian tax authorities set standard values for many of these benefits to simplify reporting and taxation.

Equity compensation

Equity compensation is becoming increasingly popular in Norway, especially in start-up and technology companies, as a way to attract and retain talent.

The taxation of equity compensation in Norway depends on the type of equity granted and the conditions attached to it:

• Stock options. Taxed as earned income at the time of exercise. The taxable amount is the difference between the market value of the shares at the time of exercise and the exercise price.
• Restricted stock units (RSUs). Taxed as compensation at the time of vesting. The taxable amount is the fair market value of the shares at the time they become unrestricted and transferable to the employee.
• Employee stock purchase plans (ESPPs). Employees can purchase company stock at a discount, and the discount provided by the employer is taxed as employment income at the time of purchase.

Capital gains

In Norway, capital gains are generally taxed as income at a flat rate of 22%. This applies to gains from the sale of stocks, bonds, and real estate, among other assets.

However, some specific rules and exemptions may apply depending on the type of asset and the period of ownership.

For example, the sale of a principal residence may be exempt from capital gains tax if certain conditions are met, such as the length of time the property has been owned and used as a principal residence. Similarly, gains from the sale of stock may be subject to a shielding allowance, which may reduce the taxable gain.

Taxpayers can carry forward losses from capital assets to offset future capital gains. This can help manage the tax impact of investment activity over time, allowing investors to offset gains and losses across different tax years.

Interest income

Interest income is taxed at the same flat rate of 22% as other forms of general income. This flat rate simplifies the taxation of different types of income, including interest income.

Social security in Norway

Norway's social security system provides comprehensive coverage, including healthcare, parental leave benefits, child allowances, disability benefits, and old-age pensions. Both employers and employees contribute to the system.

The employee contribution rate is 7.6% of gross income (2026), while employers contribute at a higher rate. The self-employed also pay contributions at a slightly different rate to ensure comparable benefits.

The US-Norway Totalization Agreement prevents dual social security taxation for Americans working in Norway. US employees sent to Norway for five years or less typically remain covered by US Social Security only.

Self-employed persons and Norwegian-based workers generally pay into the Norwegian system. To document the exemption, request a Certificate of Coverage from the Social Security Administration.

Tax deductions for expats in Norway

Norway tax deductions can make a meaningful difference in your overall bill. Expatriates living and working in Norway are eligible for several deductions that reduce taxable income.

Personal deductions

Expats, like all Norwegian taxpayers, are entitled to a personal allowance that reduces their taxable income. This allowance covers basic personal expenses and is automatically included in the tax calculation for all residents.

Under certain conditions, expatriates may also qualify for additional allowances covering costs specifically associated with living and working in Norway, subject to documentation requirements.

Norway's minimum deduction

This deduction covers employment-related expenses such as commuting, home office costs, and other work-related expenses. It is available to all employees, including expatriates, and is calculated as a percentage of gross earned income up to a capped amount. The 2025/2026 rate and NOK cap should be verified on Skatteetaten before filing, as figures are updated annually.

Interest expense deduction in Norway

Taxpayers can deduct all interest paid on debt from their taxable income, including mortgage interest, consumer loan interest, and credit card interest. The deduction is applied at a rate of 22% of interest paid, making it particularly valuable for homeowners with a mortgage.

Alimony

Child support is not taxable income and is not deductible. Spousal support from a separated or divorced spouse can be taxable to the recipient and deductible for the payer if it is paid regularly.

Charitable contributions

To qualify for a deduction, contributions must be made to approved charities and non-profit organizations listed by the Norwegian tax authorities. There is both a minimum threshold and a maximum annual cap. Verify the current 2025/2026 limit on Skatteetaten before filing.

Contingent liabilities and pension plans

Contributions to approved pension schemes, including the IPS personal savings account, are deductible from taxable income up to annual limits. Verify the current IPS limit for 2025/2026 on Skatteetaten before filing. While contributions are deductible now, pension withdrawals in retirement are taxed as income, making this a tax-efficient way to save over the long term.

Fines and penalties

Fines and penalties imposed by government authorities are not deductible for tax purposes in Norway. This includes traffic violations, late payment penalties, and fines for regulatory breaches.

Losses

Losses from business activities can be carried forward indefinitely to offset future profits. Losses from the sale of capital assets such as stocks or real estate can offset capital gains, with any excess carried forward to future years.

Does Norway have a tax treaty with the US?

Yes. The US-Norway tax treaty, signed in 1971 and updated in 1980, prevents double taxation by defining each country's taxing rights and setting reduced withholding rates.

For many Americans in Norway, Form 1116 can substantially reduce US tax on income that is also taxed in Norway, but the credit is limited and does not apply to income excluded under FEIE.

Key withholding tax rates under the treaty

The Norway US tax treaty sets the following maximum withholding rates on cross-border income payments, per the original treaty text and PwC Tax Summaries (Jan 2026).

The saving clause

Under the tax treaty between Norway and the USA, the Saving Clause allows the US to tax its citizens as if the treaty did not exist. US citizens cannot use it to escape US taxation entirely, but they can use it to reduce Norwegian withholding taxes and benefit from tiebreaker rules and non-discrimination provisions.

How to avoid double taxation

For most Americans in Norway, the process is straightforward.

Step 1. Pay Norwegian income tax. Norway taxes first, both as the source and residence country.
Step 2. File US Form 1040, reporting worldwide income.
Step 3. Claim the Foreign Tax Credit on Form 1116, which provides a dollar-for-dollar credit for Norwegian taxes paid.
Step 4. Since Norway's rates are generally high, the Foreign Tax Credit can substantially reduce or eliminate US tax liability, subject to the credit's limitations.

As an alternative, the FEIE (Form 2555) excludes up to $130,000 (2025) of earned income from US tax. However, in a high-tax country like Norway, the Foreign Tax Credit generally saves more than the FEIE.

2024 update: In November 2024, the US and Norway signed a Competent Authority Arrangement (CAA) confirming that qualifying US Regulated Investment Companies (RICs) are eligible for the 15% treaty dividend rate, per the EY Tax Alert, December 2024.

Norway vs US tax comparison

When comparing taxes in Norway vs. the US, Norwegian rates are generally higher for high earners. Norway's effective rate on employment income can reach approximately 47.4%, versus 22–37% in the US.

That said, Norway's rates include social security contributions and fund universal healthcare and education, which changes the real value equation.

Most popular tax forms for US expats

US expats in Norway must file US tax returns reporting their worldwide income regardless of where they live. These are the forms that matter most.

• Form 1040 is the standard individual income tax return, required for all US citizens and green card holders.
• Form 2555 is used to claim the Foreign Earned Income Exclusion, which allows qualifying expats to exclude up to $130,000 of foreign earned income in 2025 ($132,900 in 2026).
• Form 1116 is the primary tool for avoiding double taxation in Norway, used to claim the Foreign Tax Credit and offset Norwegian taxes against US liability dollar-for-dollar.
• FinCEN Form 114 (FBAR) must be filed if the combined balance of your foreign accounts exceeded $10,000 at any single point during the calendar year.
• Form 8938 (FATCA) applies when foreign financial assets exceed $200,000 at year-end or $300,000 at any point during the year for single filers abroad. For married filing jointly, the thresholds are $400,000 at year-end and $600,000 at any time.

Norway tax forms for US expats

US expats living in Norway must also comply with Norwegian tax laws, which include filing Norwegian tax returns. Important forms and documents include

• Skattemelding (income and wealth tax return): The primary tax return form for individuals, reporting income, assets, deductions, and taxes paid.
• Aksjesparekonto (ASK) reporting: For those with Norwegian investment accounts, reporting gains, losses, and dividends.
• Skattekort (tax card): Not a form to be filled out by the taxpayer, but an important document issued by the Norwegian tax authorities that determines the tax rate applied to your income by your employer.

Understanding and correctly completing these forms is essential for US expats in Norway to ensure compliance with local tax laws and avoid penalties.

Given the complexity of tax obligations in two countries, many expats benefit from consulting with tax professionals who specialize in expatriate tax issues.

Conclusion

Managing US expat tax obligations in Norway means staying on top of two systems at once. The good news is that Norway's high rates work in your favor as an American – the Foreign Tax Credit can substantially reduce or eliminate your US bill, subject to the credit's limitations.

Quick takeaways:

• File both the US Form 1040 and the Norwegian Skattemelding annually to stay compliant with Norway taxes
• Use the Foreign Tax Credit (Form 1116) – Norway's high rates can substantially reduce or eliminate US tax, subject to the credit's limitations
• FEIE limit: $130,000 (2025) – better option if you have low or no Norwegian tax liability
• US-Norway Treaty: dividends WHT 15%; interest generally exempt; royalties 0%; private pensions exempt
• FBAR required if foreign accounts exceeded $10,000 at any point during the year
• Norway wealth tax applies to global net assets above NOK 1,900,000 (2026)

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