Changing the basis for calculating property tax

Some municipalities use the Tax Administration’s calculated market values as their basis for levying the property tax.

If the municipality is not using the Tax Administration’s calculated market values when levying property tax, you must appeal to the municipality to change the property tax basis.

Calculated market value

As a general rule, the calculated market value for the residential property in 2022 forms the basis for the property tax in 2024.

The calculated market value is either a value based on statistics provided by Statistics Norway relating to sold properties and information about the type of property, location, size and construction year (residential property value), or a value based on documented market value in cases where the property’s owner has requested a reduced taxable value. 

Municipalities that use the Tax Administration’s calculated market values

If your municipality uses the Tax Administration’s calculated market values as their basis for levying the property tax and you believe the basis is incorrect, you can change it in your tax return. This applies to a residential property that you owned at the end of 2022.

If you bought the residential property after the end of 2022 and you want to change the basis for property tax, you must appeal the previous owner’s tax assessment. More information under "When you want to chage the basis for the property tax in 2024"

Two factors that may lead to errors

There are two factors that may lead to an incorrect calculation of the property tax (residential property value):

For property tax assessed in 2024, you must check the housing information entered in the tax return for the 2022 income year under "Housing information - basis for tax value".

If information in the tax return (primary area (living area), year of construction or housing type) is wrong, you can change the information yourself by submitting a correction to the Norwegian Tax Administration. You must be able to present documentation of the change if the Norwegian Tax Administration asks to see it. For more information on making changes yourself, see the section entitled “How to make changes”.

If you believe that the tax value is too high compared to the actual market value, you can change/reduce the tax value yourself by submitting a correction to the Norwegian Tax Administration. Certain limits have been established concerning the tax value relative to the actual market value. Consideration must be given to the limits that applied in the income year from which the calculation basis (the estimated market value for the property) was obtained.

Property tax assessed in 2024

For property tax assessed in 2024, it is the limits that applied to the 2022 income year which apply:

  • For residential properties that you own and occupy (primary dwellings), you can ask for the tax value to be reduced if it amounts to more than 25 percent of the market value up to NOK 10 million and to 50 percent of any amount exceeding NOK 10 million.
  • For residential properties that you own but are not registered as occupying (secondary dwellings), you can ask for the tax value to be reduced if it amounts to more than 95 percent of the market value.

Any reduction in the tax value will affect the property's calculated market value and hence also the property tax assessment.

Documentation

You must be able to document the property's market value. Documentation  refers to a valuation provided by a qualified valuer/valuation from an estate agent or documentation of observable market values - the amount for which the property concerned or an almost identical property in the same area has sold. Documentation of observable market value could be a purchase agreement or similar document stating the sale price.

The reduction in tax value will be used as a basis in tax calculations for the next five years.

You are responsible for ensuring that the tax value in the tax return that you submit is correct.

When you want to change the basis for the property tax in 2024

Important information

If you believe that the calculated market value for the residential property (property value) has been calculated based on incorrect information (primary area (living area), construction year, etc.), or that the taxable value for your residential property is too high compared to the actual market value, you can change the information yourself.

Please note that the change only applies to your tax return. If the residential property is owned by more than one person, all the owners must change their tax return. 

When you’ve received a notification or a decision regarding changes

If you’ve received a notification or a decision regarding changes made to the property information or taxable value in your tax return, you cannot make changes yourself.

To change the property value/taxable value in such a case, you need to fill in and submit an appealagainst the decision to the Tax Administration.

If you want to change the property value/taxable value of a residential property you did not own as at 31 December 2022, you must log in and send us an appeal. 
Information to include in your appeal
  • The residential property the appeal is about (address).
  • The amount you want us to reduce the property value to.
    • This will usually be the amount you purchased the residential property for, including any share of joint debt.
  • The primary area and construction year of the residential property.
    • The primary area and construction year will usually be stated in the valuation or property sales brochure.
  • The date of when you learned about the basis for the property tax. This means when you received your property tax notification or your first invoice.
  • The date for taking possession.

You must also attach the purchase contract.

If your municipality uses the Tax Administration’s calculated market values as their basis for levying the property tax, there are two ways to change the basis:

  1. The individual holder of ownership interests may change the property information in their tax returns themselves. To change the basis for property tax levied in 2024, the tax return for 2022 must be changed. You can change it directly in your tax return for 2022 or by logging in and submitting a correction.

  2. The housing company may send the appeal to the Tax Administration. The housing company has the right to appeal the tax assessment of an individual holder of ownership interests that affects the property tax.

    On the Brønnøysund Register Centre’s website, you can see who may sign the appeal or provide a Power of Attorney of the right to appeal on behalf of the housing company.

You must still pay

You must pay the property tax by the due date even if you’ve changed the information. We’ll provide information to your municipality regarding the new property value after the changes have been made. The municipality will then have a new basis for calculating your property tax.