Useful information about tax deductions for spouses and spouse-equivalent cohabiting partners
The tax deduction for pension income is calculated individually based on your gross pension income. The deduction is granted in the income tax and national insurance contributions that are calculated for the individual.
If your annual pension in 2023 is less than NOK 246,800 and you have no other income, the total income tax and national insurance contributions will be less than the maximum tax deduction. Unutilised maximum tax deductions cannot be transferred and used by your spouse/spouse-equivalent cohabiting partner. If you receive capital income (interest, etc.), it may be beneficial to enter some of the capital income in the tax return under the person who has the lower pension income.
As spouses/spouse-equivalent cohabiting partners, you can in principle freely allocate capital income and capital expenses between you in the tax return. The most common capital incomes and expenditures you can allocate between yourselves are:
- interest income/expenses
- share dividends
- gains/losses on sales
Within the context of tax law, "spouse-equivalent cohabiting partners" means:
- former spouses/registered partners who have become cohabitants, where at least one of them is entitled to a pension from the Norwegian National Insurance Scheme or an contractual pension (AFP)
- cohabitants who have or have had joint children, and where at least one person is entitled to a pension from the Norwegian National Insurance Scheme or an contractual pension (AFP)
If both cohabitants were granted pension from the Norwegian National Insurance Scheme as single persons before 1 January 1994, and the cohabitation started before that date, they will not be treated as spouse-equivalent cohabiting partners.
In connection with the pre-filling of tax returns, it's not practicable for the Norwegian Tax Administration to allocate income and deductions in the most favourable way. This means that if a different allocation than the pre-filled one is more favourable, you must correct and submit the tax returns yourself. You can do a preliminary calculation of what your tax will be after the tax deduction.
By moving capital income from the one with the higher pension and/or salary to the one with the lower pension, allowing the one with the low pension to utilise the tax deduction, you can pay less tax between you.
The tax rates for 2023 have been used in the examples below.
Example of transferral of interest deduction between spouses:
Tove and Per Nilsen have the following annual pension income and capital income. They both withdraw 100 percent retirement pension for 12 months.
Items |
Tove |
Per |
Retirement pension |
NOK 120,000 |
NOK 250,000 |
Interest income |
NOK 15,000 |
NOK 23,000 |
Calculated tax |
NOK 7,748 |
NOK 37,201 |
- tax deduction |
NOK 7,748 |
NOK 32,291 |
= Tax |
NOK 0 |
NOK 4,910 |
If they transfer the interest income from Per to Tove, the tax will amount to:
Items |
Tove |
Per |
Retirement pension |
NOK 120,000 |
NOK 250,000 |
Interest income |
NOK 38,000 |
NOK 0 |
Calculated tax |
NOK 12,809 |
NOK 32,142 |
- maximum tax deduction |
NOK 12,809 |
NOK 32,142 |
= Tax |
NOK 0 |
NOK 0 |
|
|
|
Tove still has NOK 0 in tax after the tax deduction. Per has his tax reduced by NOK 4,910.
In practice, the amendment is made by reducing the interest income in Per's tax return by NOK 23,000. In Tove's tax return, the interest income is increased by the equivalent amount.
Transfer of capital expenses between spouses
By moving capital expenses between yourselves, the person with the lowest pension can make better use of his or her tax allowance, thereby reducing your combined tax. It may, for example, be beneficial to transfer interest deductions from one of the couple's tax return to that of the other.
Example transfer of interest deduction between spouses:
Anne and Jon Olsen has the following annual pension income and capital expenses.
Items |
Anne |
Jon |
Retirement pension |
NOK 120,000 |
NOK 260,000 |
Interest deduction |
NOK 10,000 |
NOK 12,000 |
Calculated tax |
NOK 6,120 |
NOK 32,382 |
- tax deduction |
NOK 6,120 |
NOK 30,621 |
= Tax |
NOK 0 |
NOK 1,761 |
Items |
Anne |
Jon |
Retirement pension |
NOK 120,000 |
NOK 260,000 |
- interest deduction |
NOK 0 |
NOK 22,000 |
Calculated tax |
NOK 6,120 |
NOK 30,182 |
- tax deduction |
NOK 6,120 |
NOK 30,182 |
= Tax |
NOK 0 |
NOK 0 |
Anne and Jon combined save NOK 1,761.
In practice, the amendment is made by reducing the interest deduction in Anne's tax return by NOK 10,000. In Jon's tax return, the interest deduction is increased by the equivalent amount.
Example showing transfer of capital expenses when only one of the spouses receives retirement pension:
Ole Jonsen has the following annual pension income and capital expenses and Petra has the following salary income:
Items |
Petra |
Ole |
Salary |
NOK 240,000 |
|
Retirement pension |
|
NOK 150,000 |
Interest deduction |
NOK 2,000 |
NOK 20,000 |
Ole witdraws 100 percent of the retirement pension for 12 months.
Calculated tax |
NOK 24,817 |
NOK 7,650 |
- tax deduction |
NOK 0 |
NOK 7,650 |
= Tax |
NOK 24,817 |
NOK 0 |
If they move the interest deduction of NOK 20,000 kroner from Ole to Petra they get:
Items |
Petra |
Ole |
Salary |
NOK 240,000 |
|
Retirement pension |
|
NOK 150,000 |
Interest deduction |
NOK 22,000 |
NOK 0 |
Calculated tax |
NOK 20,417 |
NOK 9,939 |
- tax deduction |
NOK 0 |
NOK 9,939 |
= Tax |
NOK 20,417 |
NOK 0 |
Petra and Ole save NOK 4,400.
In practice, the amendment is made by reducing the interest deduction in Ole's tax return by NOK 20,000. In Petra's tax return, the interest deduction is increased by the equivalent amount.
The relation between tax deduction for pension income and uncovered deficit
If you or your spouse has an uncovered deficit, this may entail that the tax deduction for pension income cannot be fully used by the receiving spouse.
Read more in the guide Skatte-ABC 2023 (in Norwegian only) in the sections "Skattefradrag for pensjonsinntekt” (Tax deductions for pensionable income”) point S-13.
Try using our tax calculator to calculate your taxes and deductions.