How much tax do you have to pay – letting of part of your home

Any profit is taxed as capital income at the rate of 22 percent. Correspondingly, any deficit will become a deduction.

However, it's not necessarily always the case that rental income is taxed as capital income. In some cases, rental income can be taxed as business income, at a tax rate of up to 50.6 percent.

If you let less than half of your home (calculated according to rental value), and the conditions for tax-free letting are met, there will never be any question of a business activity.

If you let more than half of your home (calculated according to rental value), and have an annual rental income of more than NOK 20,000, this may in certain cases be considered letting as a business activity.

Whether the letting is considered a business activity or not depends on an overall assessment that's based on the scope, frequency and duration of the letting, among other things. Usually, for the letting to be assessed as a business activity, you have to let your entire home through short-term and frequent lettings.

The "Am I self-employed?" wizard is available here.