Bracket tax

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A bracket tax payable to the State replaced surtax on high incomes from the start of the 2016 income year. Bracket tax is a progressive tax on gross salary and other personal income.

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.

For the 2015 income year the surtax rules still apply.

The bracket tax for personal taxpayers is calculated based on the individual's salary income and other corresponding incomes which replace salary income, such as sick pay, work assessment allowance, disability benefit and pension.

Bracket tax consists of four steps. You will not pay any bracket tax on the first NOK 159,800 of your personal income.  

  Income between NOK 0 - 159,800 No bracket tax
Step 1 Income between NOK 159,800 – 224,900 0.44% bracket tax
Step 2 Income between NOK 224,900 – 565,400 1.7% bracket tax
Step 3 Income between NOK 565,400 – 909,500 10.7% bracket tax*
Step 4 Income over NOK 909,500 13.7% bracket tax

*residents of Finnmark and Nord-Troms 8.7%

About the steps

Bracket tax uses rising tax rates, split between four steps, where the bottom two steps are triggered at lower income levels than was the case with surtax. The first stage concerns income in the lowest income band, while the other stages concern income above this. The activation thresholds in steps 3 and 4 correspond to the surtax activation thresholds for 2015 adjusted to 2016 salary levels. The rates and income levels are the same regardless of whether you are assessed under tax class 1 or whether you are assessed jointly with a spouse under tax class 2.

The new bracket tax is linked to the reduction in tax on general income from 27% to 25% with effect from the 2016 income year. General income comprises all types of taxable income with the deduction of all deductible expenses.

The special reduction in the surtax rate which residents of Finnmark and Nord-Troms previously received has been continued through the setting of the tax rate for step 3 to 8.7% for residents of this region.

 

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