On October 15, the Støre government presented its proposed state budget for 2026. It is important to emphasize that this is only a proposal - the government will now negotiate with the other parties to reach an agreement. This means that there may be changes to what has now been presented
Personal tax
When it comes to personal taxation, there are several new features. The most noticeable change is a proposed experimental scheme with a work deduction for young people to stimulate the labor supply. In addition, changes are proposed to the electric car tax, which will make electric cars more expensive. Otherwise, the rates for step tax and social security contributions will be adjusted in line with price growth.
Another proposal that may affect many people is the changes to the tax rules for mutual funds and fund accounts (investment accounts). The aim is to create greater neutrality between different forms of savings. At present, returns are taxed differently depending on whether the investments are made via a mutual fund or a fund account, which has given tax advantages by choosing insurance-based solutions. The government therefore proposes that income from fund accounts should be taxed on an ongoing basis to a greater extent, in the same way as mutual funds, and that the share of equities and interest should be calculated more precisely to ensure the correct taxation model.
Also read: Personal tax in national budget 2026
Wealth tax
When it comes to wealth tax, no major changes are proposed, but several adjustments. A new model for the valuation of housing is also proposed, which will provide more precise values - especially for expensive homes in pressure areas.
The basic deduction is increased to NOK 1.9 million, while the stage 2 threshold is adjusted to NOK 21.5 million. The municipal part of the wealth tax will be reduced from 0.525% to 0.35%, while the state part will be increased accordingly, making the change revenue neutral.
Furthermore, it is proposed to clarify that the time of global wealth tax liability is whether the taxpayer is resident in Norway for tax purposes at the end of December 31 of the income year.
The government also wants to introduce a deferral scheme for the payment of wealth tax in the event of documented liquidity problems from 2026, particularly aimed at owners of unlisted companies that must pay wealth tax without having received dividends.
Read also: Wealth tax in the national budget 2026
Business tax
In the proposed state budget for 2026, the government proposes several changes to business taxation. These are not major reforms, but rather practical adjustments that will result in a more neutral and robust tax system.
Among other things, the government wants to stop the use of the so-called condominium model by cutting off the possibility of tax-free mergers - a method that has been used in planning the sale of real estate companies. There will also be changes to the agricultural account and product tax on first-hand sales of fish.
Furthermore, updates are proposed to the Supplementary Tax Act, which was adopted in January 2024 to implement the OECD's model regulations for global minimum taxation (Pillar 2). The changes will bring the Norwegian regulations in line with the latest administrative guidance from the OECD's "Inclusive Framework" and ensure that large groups are taxed at a minimum of 15%, regardless of where in the world the business is conducted.
Changes are also proposed to the rules for the allocation of debt and interest deductions in financial companies with operations both in Norway and abroad. The current method has meant that too much of the interest expenses are allocated to the Norwegian part, which reduces taxable income. The government will therefore introduce direct allocation of debt, so that interest expenses are linked to the business that has actually taken out the loan.
Within the VAT area, in addition to changes to the exemption for electric vehicles, new VAT rules are proposed for remotely deliverable services, such as consulting services and digital services, to ensure that the services are taxed in the country where they are actually consumed - regardless of where the supplier is located.
Read also: Corporate tax in the state budget 2026
Other amendment proposals from the state budget 2026:
- International tax
- Wealth tax
- VAT, excise duties and customs
- New requirements for procurement of remotely deliverable services
- Receivables between related parties may have a deadline for loss recognition
Do you have questions about tax? Our tax lawyers are happy to help.
