Bracket tax
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 bracket tax for personal taxpayers is calculated on personal income. Personal income is salary income and other incomes which replace salary income, such as sick pay, work assessment allowance, disability benefit and pension.
Bracket tax consists of five steps. You will not pay any bracket tax on the first NOK 226,100 of your personal income.
| Income between NOK 0 – 226,100 | No bracket tax | |
| Step 1 | Income between NOK 226,101 – 318,300 | 1.7% bracket tax |
| Step 2 | Income between NOK 318,301 – 725,050 | 4.0% bracket tax |
| Step 3 | Income between NOK 725,051 – 980,100 | 13.7% bracket tax |
| Step 4 | Income between NOK 980,101 – 1,467,200 | 16.8% bracket tax |
| Step 5 | Income from and including NOK 1,467,201 | 17.8% bracket tax |
About the steps
Bracket tax uses rising tax rates, split between five 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 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 with effect from the 2016 income year. General income comprises all types of taxable income with the deduction of all deductible expenses.