Table-based or percentage-based tax deduction cards
When you earn a salary or receive other taxable payments, you need a tax deduction card. The person who pays you must deduct tax according to the information on your tax deduction card.
Table-based deductions in your tax deduction card
A table-based tax deduction card is best suited for you if you have a stable income and one steady employer/payer.
How the table-based card works
Your employer/payer deducts the tax according to a table. The table number used for our deducted tax, is found om your payslip and your tax deduction card, which you’ll find when you log in to My page.The information in your tax deduction card determines how much tax you have to pay during the year.
Table-based deductions take into account if your annual income increases, and you’ll be deducted more tax if you get a salary raise during the year. The tax deduction card also has a percentage section. Payers use this section if you have more than one employer or if you receive benefits from NAV in the same period.
To avoid underpaid tax, it’s important that you check your tax deduction card and update the information when needed. It’s important that just one payer deducts tax according to the table in your tax deduction card.
Calculate how much tax will be deducted from your salary – you’ll see what you’ll be paid based on your table-based tax deduction card.
Percentage-based deductions in your tax deduction card
A percentage-based tax deduction card is best suited for you if you have:
- several employers
- a combination of fixed salary and commission-based salary and/or bonuses
- large variations in your salary during the year
- a high monthly wage and only a short work period during the year – for example, a summer job or seasonal work
- pension benefits that entitles you to tax deductions
- several types of pension benefits, for example other pension and early retirement pension (AFP)
- a combination of salary and pension income
- large deduction items (debt interest, travel deduction, parental allowance, etc.)
How the percentage-based card works
Your employer/payer deducts the tax according to a set percentage. The percentage is calculated based on your income, deductions, wealth, and debt.
Percentage deductions do not take into account any changes in the relationship between income and deductions. If you have a higher or lower income or larger or smaller deductions during income year, you risk paying too little or too much tax.
To avoid underpaid tax, it’s important that you check your information and make updates when needed. You know your finances best, so it’s important that you check that all the amounts are correct.
If you update your tax deduction card and we propose table-based deductions, you can still tick the box to indicate that you prefer the percentage-based deductions.
If you change your tax deduction card
If you change your tax deduction card after your employer or payer has reported the year’s first income to us, and you have a table-based card, it will be changed to a percentage-based card. This is because a table-based card calculates tax on the income for the whole year. When a payment has already been reported, the table-based card may result in an incorrect calculation. You therefore get a percentage-based card to ensure that the tax is correct. This means that you’ll be deducted tax according to the percentage specified in your tax deduction card the next time you receive a payment.
Specific information if you have
If you have a table-based tax deduction card, Nav will deduct taxes according to the table if the table is listed on the relevant benefit from Nav on your tax deduction notice.
Nav can also deduct taxes according to a table if the table is listed with the code for main income, even if a percentage-based deduction is listed with the code for tax deductions for sickness benefit, maternity benefit or other benefits.
If Nav receives a table:
- the table-based deduction will always be used if you .
- the table-based deduction will always be used if you receive work assessment allowance or unemployment benefit.
If you receive several benefits from Nav during the same period, it’s important that table-based deductions are only used for one of the benefits. You can also order a percentage-based card, in which case the same percentage will be used for deductions on all benefits.
Here, you’ll find more information on table-based deductions on benefits from Nav, as well as how to change from the table-based to percentage-based deduction with Nav.
Seafarers that are resident abroad do not receive a tax deduction card. Specific deduction tables have been introduced for seafarers who are liable to pay tax under section 2-3, subsection 1, letter h of the Taxation Act (in Norwegian only):
- 0100 Deduction table Class 1
For tax on seafarer's income with 10 percent standard deduction, 30 percent seafarer's allowance. - 0101 Deduction table Class 1
For tax and national insurance contributions on seafarer's income with 10 percent standard deduction, 30 percent seafarer's allowance.
The tables are calculated based on regular deductions throughout 12 months and will therefore result in smaller deductions. No exemption from deductions should therefore be given during the holiday period and before Christmas. The salary amount (the basis for the deduction) should be rounded downwards.
If you have a tax deduction card for the PAYE scheme, you’re taxed at a fixed percentage every month. Your employer deducts the fixed amount from your salary, regardless of how much or how little you earn. When the monthly amount has been deducted, your tax has been paid.
You’ll receive a receipt for PAYE tax in June that shows how much salary and tax your employer has reported to the Tax Administration for the work you did last year.
If you opt out of the PAYE scheme at a later date, this amount is converted to withholding tax.