Have you drawn a 100 percent retirement pension from the Norwegian National Insurance Scheme or a contractual pension (AFP) all year?

The maximum tax deduction for 2023 is NOK 32,825 for everyone who has drawn retirement pension from the National Insurance Scheme or a contractual pension (AFP), with a retirement percentage of 100 percent all year. The combined pension income (including occupational pensions, etc.) must not exceed NOK 246,800. However, the tax deduction is limited to the sum of the assessed income tax and national insurance contributions. The part of the tax deduction that you have used will be shown in the provisional tax assessment.

Did you not use your maximum tax deduction?

Have you drawn a retirement pension from the Norwegian National Insurance Scheme or a contractual pension (AFP) less than the full year?

The tax deduction is reduced relative to the number of months you’ve drawn a retirement pension from the National Insurance Scheme. The tax deduction is also reduced in relation to the retirement percentage. In the article Tax deductions for recipients of retirement pensions from the National Insurance Scheme or contractual pension (AFP), you can read more about how the tax deduction is calculated. The article has several examples of tax deduction calculations. 

Try using our tax calculator to calculate your taxes and deductions.

Your combined annual pensions exceed NOK 210,950

Have you drawn a 100 percent retirement pension from the Norwegian National Insurance Scheme or a contractual pension (AFP) all year, and have a combined pension (including occupational pensions etc.) exceeding NOK 246,800?

The maximum tax deduction for 2023 is NOK 32,825 for everyone who has drawn retirement pension from the National Insurance Scheme or a contractual pension (AFP), with a retirement percentage of 100 percent all year. The combined pension income (including occupational pensions, etc.) must not exceed NOK 246,800. The tax deduction is reduced in two steps when your combined pension income exceeds NOK 246,800.

• Step 1: The deduction is reduced by 16.7 percent of pension income exceeding NOK 246,800.
• Step 2: The deduction is reduced by 6 percent of pension income exceeding NOK 373,650.

When you draw a pension for less than the full year, the amount limits in steps 1 and 2 are reduced 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

If your combined pension income is NOK 350,000 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 246,800 is NOK 32,825.

Comined pension income	NOK 350,000
- Amount limit, step 1	NOK 246,800
= Beløp som skal nedtrappes	NOK 103,200
The tax deduction is reduced by 16.7 percent of NOK 103,200	NOK 17,234
Maximum tax deduction for pension income up to NOK 246,800	NOK 32,825
- reduced tax deduction	NOK 17,234
= Your maximun tax deduction is	NOK 15,591

 

Try using our tax calculator to calculate your taxes and deductions.