Tax limitation for pensioners

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Tax limitation is no longer given to pensioners. Instead, see current rates for tax allowance for pension income. Tax limitation in connection with low general income can be given to recipients of the following means-tested benefits from the National Insurance service:

The rate applies for the income year 2014

If you need rates for the tax return, you must check the rates for 2016

By "income year", we mean the year in which the income or expense arises. The rates for the income year are used in the tax return and tax calculation.


By "assessment year", we mean the year after the income year and in which the tax return for the income year must be submitted/checked and the tax calculated.

Applies to those who receive transitional benefit, survivor's benefit, a pension to former family carers or supplementary benefit to persons with a short period of residence in Norway.

You will not pay tax when your general income before the special allowance is below the threshold amount. If your income is higher, tax on general income and employer's national insurance contributions combined must not exceed 55% of the income above the threshold amounts.

You will have to pay any surtax and wealth tax even if you are covered by the tax limitation rule.

If you have capital, 1.5% of the capital exceeding NOK 200,000 is added to the income before the tax limitation is calculated. Housing that you use as your own primary dwelling (i.e. the home you are resident in at the end of the income year) is excluded from the calculation of capital. 'Primary dwelling' here also includes farmhouses and their naturally associated plot. 

If you are married or a spouse-equivalent cohabitant, the tax limitation under Section 17-1 of the Taxation Act will generally be calculated separately for each of you. Capital, debt, income and deductions which can be freely distributed between you in the tax return must be distributed with half to each of you when the tax limitation is calculated.

General income is supplemented by 1.5% of your net capital above NOK 100,000 (primary dwelling is excluded).

If you receive disability pension and supplementary benefit for spouses, the tax limitation will still be calculated jointly for you and your spouse on the basis of your combined income. Combined general income is supplemented by 1.5% of your total net capital above NOK 200,000 (primary dwelling is excluded) 

If you receive both benefits that give entitlement to a tax deduction (old-age pension/early retirement pension) and benefits which give entitlement to tax limitation, you will not be entitled to both the tax limitation and the tax deductions. In such cases, the tax will be determined according to the rule which results in the lowest tax.

 

Amount limits:

Single NOK 131,400
Married couple - each spouse NOK 120,800
Married couple - combined NOK 241,600

Wealth supplement:

Rate 1.5% 
Limit: Married couple – each spouse  NOK 100,000
Limit: Married couple combined/single NOK 200,000

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