On 7 October 2026, the Støre government presented its proposal for the 2027 national budget. Here are the key proposed changes in personal taxation.
Minor tax relief for private individuals
The national budget provides minor tax relief for private individuals through small adjustments to the bracket tax, the personal allowance, and the social security contribution.
The bracket tax rates are proposed unchanged, but the thresholds are adjusted to account for projected wage growth of 4%. This gives new thresholds of NOK 235,150 for bracket 1, NOK 331,050 for bracket 2, NOK 754,050 for bracket 3, NOK 1,019,300 for bracket 4, and NOK 1,525,900 for bracket 5.
The personal allowance is proposed increased by 4.9%, from NOK 114,540 to NOK 120,180. The government further proposes to increase the upper limits of the minimum deduction for wage and social security income to NOK 99,550, and to NOK 77,950 for pension income.
The social security contribution rate is proposed reduced by 0.2% for 2027. This means the social security contribution on wages and social security benefits will decrease from 7.6% to 7.4%, and the social security contribution on business income will decrease from 10.8% to 10.6%.
The social security contribution rate on pensions is proposed kept unchanged at 5.1%. The government proposes to adjust the threshold amounts in the pension tax deduction to ensure that single recipients of the minimum pension do not have to pay tax on the minimum pension.
This is done by increasing the maximum pension tax deduction from NOK 39,100 in 2026 to NOK 40,750 in 2027. The threshold for the phase-out in bracket 1 of the pension tax deduction is proposed increased from NOK 304,050 in 2026 to NOK 306,250 in 2027.
New model for company car taxation
The government proposes a new model for taxing the private use of company cars. Today, the taxable benefit is set at 30% of the car's list price up to NOK 370,300, and 20% of the amount exceeding this.
Under the new proposal, the benefit is set at 20% of the car's list price when new, plus a fixed cost component proposed to be differentiated by engine type (electric, petrol, diesel, or plug-in hybrid). The cost component is lowest for electric cars and highest for petrol cars, with plug-in hybrids and diesel in between. The component is intended to reflect the estimated costs of holding an equivalent car privately.
The proposal aims to capture the actual benefit employees gain from private use of an employer's car, while still providing a framework that is simple to apply.
The change results in more lenient taxation for electric, diesel, and hybrid cars. Petrol cars will see a somewhat higher income addition than today, though this is still expected to be lower than the estimated costs of a typical petrol car. The proposal is intended to take effect from the 2027 income year and is estimated to reduce state revenues by around NOK 325 million.
Simpler rules for the sale of homes and holiday homes received through inheritance or gift
The government proposes that no tax will be payable on any gain, and no deduction will be given for any loss, where a home or holiday home received through inheritance or gift is sold within one year of the date of inheritance or gift. The rule applies only where the deceased or donor could themselves have sold the property tax-free at the time of death or gift, and covers only homes and holiday homes, not farms or forestry properties.
The proposal makes it easier for heirs and gift recipients to sell quickly, as they will no longer need to establish the property's assumed sale value at the date of inheritance or gift. At the same time, it prevents loss deductions being claimed based on an artificially high value.
The pilot scheme for a working income deduction for young people is continued
Since 2026, a randomly selected group comprising 8% of young people born between 1991 and 2006 has received an additional tax deduction on earned income. The pilot scheme will continue until 2030 and is intended to generate new knowledge on how economic incentives affect labour force participation.
For 2027, it is proposed that the maximum deduction be increased from NOK 125,000 to NOK 130,000, and that the income threshold for phase-out be increased to NOK 358,800, in line with projected wage growth of 4%. The deduction is then fully phased out at an income of NOK 683,800.
