Tax limitation for recipients of means-tested benefits

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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 2016

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.

Transitional benefits

  • single mother or father if the transitional benefit was approved 31 March 2014 or earlier 
  • former family carer 
  • spouse 

Survivor's pension 

  • pension to family carer

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 capital calculation. 'Primary dwelling' here also includes farmhouses and their naturally associated plots.

Tax limitation in connection with low general income is automatically granted during the assessment process. The tax limitation scheme for disabled persons was abolished with effect from 2015. More information on the new tax rules for disability benefits.

With effect from 2015, the tax limitation rule also no longer applies to recipients of supplementary benefit to persons who are resident in Norway for a short period of time.

Recipients of supplementary benefit will instead be taxed under the ordinary tax rules for old-age pensioners and be covered by the rules concerning tax deductions for pension income. Read more about who is entitled to tax deductions.   

 

Amount limits:
Single NOK 139,400
Wealth supplement:
Rate 1.5%
Limit: single NOK 200,000

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