Tax rules for pensioners

Tax rules for pensioners for the income year 2016:

  • Old-age pension, early-retirement pension (AFP) and other pensions is taxable income
  • The tax for general income is 25 percent
  • The National Insurance contribution for pensions is 5.1 percent
  • The rate for the minimum standard deduction for pension income is 29 percent. The lower limit is 4 000 NOK and the upper limit is 73 600 NOK.
  • Disability benefits is taxed as salary income. The National Insurance contribution rate for salary income is 8.2%. The rate for the standard minimum deduction for salary income is 43%. The lower limit is NOK 31,800 and the upper limit is NOK 91,450.
  • Recipients for old-age pensioners, recipients of early-retirement pension (AFP) in the public sector, and recipients of supplementary benefits for persons who have only lived in Norway for a short period, may get tax deductions in income tax and national insurance contributions.. 
  • Receive a tax allowance in the income tax and the National Insurance contribution
  • The tax limitation scheme for disabled persons was abolished with effect from the 2015 income year. There is a three year transistion rule for tax deduction for specified group of disabled people that had a negative capital income as a consequence of the abolishment of the tax limitation scheme and thereby a decrease in income after tax.
  • The rules concerning the special allowance for disability have been abolished with effect from 2015.
  • Supplementary benefit for spouses under the National Insurance Act paid to recipients of old-age pensions/AFP, is tax-free when the effective date for the supplementary benefit is before 1 January 2011
  • Compensation supplements paid to recipients of new early-retirement pensions (AFP) in the private sector are tax-free

If you are tax-resident abroad and pay withholding tax on your Norwegian pension, see "Pensioners who are tax resident abroad"