How can I find out whether my spouse who has a low pension has made use of the maximum tax deduction?

Your combined annual pensions do not exceed NOK 184,800.

Have you drawn a 100 percent old-age pension under the National Insurance Act or early retirement pension (AFP) throughout the whole year?

The maximum tax deduction is NOK 29,880 for everyone who has drawn an old-age pension or early retirement pension with a retirement percentage of 100 all year and the combined pension income (including occupational pensions, etc.) does not exceed NOK 184,800. However, the tax deduction is limited to the sum of the assessed income tax and national insurance contributions. It is the proportion of the tax deduction that you have utilised that will be shown in the provisional tax settlement.

If you have not made use of your full tax deduction.

Have you drawn an old-age pension from the National Insurance scheme or an early retirement pension (AFP) for less than the full year?

The tax deduction is reduced relative to the number of months you have drawn an old-age pension from the National Insurance scheme.The tax deduction is also reduced in relation to retirement percentage.The maximum tax deduction for the partner with a total pension income (including occupational pensions, etc.) not exceeding NOK 184,800 can be found in the table below.

Compare the amount from the table with the tax deduction shown in the provisional tax settlement. If you have not made use of your full tax deduction.

Table 1: Calculation of tax deduction

 

Number of months with pension

100

80

60

50

40

20

12

 29880 

 23904      

 17928

 14940

 11952

   5976

 11

 27390

 21912

 16434

 13695

 10956 

 5478

10

 24900

 19920

 14940

 12450

 9960

 4980

9

 22410

 17928

 13446

 11205

 8964

 4482

8

 19920

 15936

 11952

 9960

 7968

 3984

7

 17430

 13944

 10458

 8715

 6972

 3486

6

 14940

 11952

 8964

 7470

 5976

 2988

5

 12450

   9960

 7470

 6225

  4980

 2490

4

 9960

      7968

 5976

  4980

  3984

 1992

3

  7470

      5976

 4482

 3735

  2988

 1494

2

  4980

     3984

 2988

  2490

   1992

  996

1

  2490

     1992

  1494

   1245

    996

  498

Have you drawn a 100 percent old-age pension from the National Insurance scheme or an early retirement pension (AFP) all year and have a total pension income (including occupational pensions, etc.) exceeding NOK 184,800?Your combined annual pensions exceed NOK 184,800.

If you have no additional deductions, the sum of your income tax and national insurance contributions must not exceed your maximum tax deduction. If you have deductions other than the minimum deduction shown in the pre-completed tax return, the sum of your income tax and national insurance contributions may be less than your maximum tax deduction.

The maximum tax deduction is NOK 29,880 for everyone who has drawn an old-age pension or early retirement pension with a retirement pension of 100 all year and the total pension income does not exceed NOK 184,800. The tax deduction is reduced in two steps when your total pension income exceeds NOK 184,800.

  • Step 1: The deduction is reduced by 15.3% of the pension income which exceeds NOK 184,800. 
  • Step 2: The deduction is reduced by 6% of the pension income which exceeds NOK 273,650.

When you draw a pension for less than the full year, the amount limits are reduced in steps 1 and 2 relative to the number of months in which you draw a pension. If you draw less than 100 percent pension, the amount limits are reduced in steps 1 and 2 relative to the retirement percentage.

Example calculation of reduced tax deduction

For example, if your total pension income is NOK 194,000 with a retirement percentage of 100 and you draw a pension all year, your maximum tax deduction will be calculated as follows:

The maximum tax deduction for pension income up to NOK 184,800 is NOK 29,880.

Total pension income NOK 194,000  
Amount limit step 1  NOK 184,800  
The tax reduction is reduced by 15.3% of  NOK 9,200 =  NOK 1,408
Your maximum tax deduction is   NOK 28,472

Table 2: Calculations of amount limits in step 1

Number of months with pension

100

80

60

50

40

20

12

 184800

 147840

 110880 

 92400   

 73920

 36960

11

 169400

 135520

 101640

 84700

 67760

 33880

10

 154000

  123200

   92400

  77000

 61600

 30800

9

  138600

 110880

  83160

  69300

 55440

 27720

8

  123200

   98560

 73920

 61600

4 49280

 24640

7

 107800

 86240

 64680

 53900

 43120

 21560

6

  92400

  73920

 55440

  46200

  36960

 18480

5

  77000

  61600

  46200

 38500

 30800

 15400

4

 61600

 49280

 36960

 30800

 24640

 12320

3

 46200

 36960

 27720

 23100

 18480

 9240

2

 30800

 24640

 18480

 15400

 12320

 6120

1

 15400

 12320

   9240

 7700

 6160

 3080