Network NorthA practical 2026 comparison
Tax schemes in Norway
Foreign employees may be taxed under the general taxation rules or the voluntary PAYE scheme.
Taxable income and benefits
Income from work performed in Norway is generally taxable and reported through Norwegian payroll.
- Wages and holiday pay
- Taxable allowances and some per diem allowances
- Benefits in kind, such as a mobile phone
- Other taxable remuneration
PAYE
Most foreign workers who are new to Norway or have short work stays may use PAYE when the conditions are met. The 2026 rate is 25% and annual taxable income must remain below NOK 725,050.
If annual income exceeds NOK 725,050, PAYE no longer applies and tax is recalculated under the general rules for the full year.
General taxation
The rate varies with annual income and deductions. A tax return and tax assessment are issued the following year, which may result in a refund or underpaid tax.
- Eligible deductions may be claimed.
- The employee can opt out of PAYE, but cannot rejoin PAYE for the same income year.
- Table withholding is not the same as final tax.
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