The tax class that you are placed in will determine the personal allowance that you are entitled to. The personal allowance is a tax-free amount used when calculating tax on ordinary income (net income). The personal allowance in class 2 is higher than in class 1. The special allowance for residents of Finnmark and certain municipalities in Nord-Troms (the Finnmark allowance) is the same for both tax class 1 and tax class 2.
You do not need to claim the personal allowance and the Finnmark allowance in the tax return; it is applied automatically based on the information recorded by the Tax Administration.
All single taxpayers are assessed in tax class 1.
These is a special allowance for single parents of children under the age of 18. Single parents will be assigned to tax class 1.
In tax class 0, there is no personal allowance.
- Single taxpayers are assigned to tax class 1. Single here means anyone who is unmarried, divorced, separated or a widow/widower.
- Married couples who are assessed individually, i.e. each person's income is assessed separately, are assigned to tax class 1 for the calculation of the income tax.
- Married couples who are assessed jointly on their combined income are assigned to tax class 2.
- Deceased persons are assessed in tax class 1 or 2 for the year of the person's death. In the following year, deceased persons are assessed in tax class 0.
- Deceased persons are assessed in tax class 0 for the years following the year of the person's death (when the estate is not settled).
- Non-personal taxpayers (such as limited companies) are assessed in tax class 0.
Find out more about tax classification in the Tax ABC.