What is property tax?
Property tax is a municipal tax that municipalities can opt to introduce. Property tax is levied by the municipality’s property tax office. In most cases, you pay property tax in four instalments per year along with other municipal taxes.
Municipal authorities that have introduced a property tax may decide to use the Norwegian Tax Administration's calculated market value for residential properties or their own calculation method as a basis for calculating property tax. Market value will either be 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 tax value. If you’re in doubt as to how the property tax has been calculated, see the property tax notification you received from your municipal authority.
The property tax notification
The property tax notification is the letter you received from your municipal authority telling you the amount of property tax that you have to pay. The letter will also explain how your municipal authority calculated the value of your property. Contact the property tax office in your municipality if you cannot find any information on this in your property tax notification.
The Norwegian Tax Administration’s residential property values
If your municipality uses the Norwegian Tax Administration’s residential property values, your property tax is calculated using the property value from the last wealth and income tax assessment, reduced by an obligatory reduction factor.
This means that for property tax levied in 2021, municipalities will use property values from 2019. In addition to this obligatory reduction factor, the municipality can reduce the basis for property tax further by using a local reduction factor and/or an annual basic deduction.
Residential property value is not the same as tax value
- Residential property value is the Norwegian Tax Administration’s estimated market value of a residential property, which is assessed based on a price per square metre determined by Statistics Norway (SSB) multiplied by the area of the property (primary area).
- Tax value is a set percentage of this residential property value. The tax value for primary dwelling is set to 25 percent of the residential property value and to 90 percent for secondary dwellings. A property’s tax value will always be less than its residential property value.
A property’s tax value is affected by whether your home is a primary or secondary dwelling, whilst your use of the property has no effect on the residential property value. Whether the property is your primary or secondary dwelling will therefore not affect the amount of property tax that is payable.
You'll find the assessed residential property value in your tax return, along with other information concerning the property (address, primary area etc.). You can find out more about how assessing tax value and residential property value here.