Changing the taxable value - other housing (secondary dwelling)

• valuation from a qualified valuer,
• valuation by an estate agent who is familiar with the district,
• observable market value - the price for which the property/plot or a very similar property/plot in the same area has been sold. Documentation of observable market value could be a purchase agreement or similar document stating the sale price.

• By changing your tax deduction card for 2024. If you believe that the estimated taxable value is incorrect and that the error will affect the tax deduction for the 2024 income year, you can change this and order a new tax deduction card. Enter the taxable value you believe to be correct. The taxable value for secondary dwellings must not amount to more than 100 percent of the property’s market value. You must be able to document the market value on request from the Norwegian Tax Administration. Please note that changes of the taxable value are not automatically transferred and pre-filled in your tax return. You must make sure to change the basis for the taxable value in the tax return as well.
  
  
• By changing the tax return for 2023. You can change the basis for the taxable value when submitting the tax return. You can make changes when you believe that the basis for the calculation is wrong, this means incorrect information on the primary area, year of construction, etc. You can also change to the documented market value. The taxable value is 100 percent of the residential property’s documented market value. 
• Changes after you have submitted your tax return or received your tax assessment: If you wish to change the taxable value after submitting the tax return or received the tax assessment, you can change the tax return yourself and resubmit it. You can make changes for the 2021 and 2022 income years. You can make changes yourself for three years from the submission deadline for the tax return (normally 30 April) of the income year you wish to change. However, you cannot make changes yourself if you’ve received a notification of an audit of the information on the taxable value from the tax authorities or if you’ve received a decision by the tax authorities on the assessment of the taxable value. In these cases, any changes of the taxable value must be requested through an appeal to the tax authorities.
  
  
• Property tax: If the municipality uses the Tax Administration's calculated market value (property value) for residential properties as the basis for issuing property taxes, any change of the taxable value as mentioned before will affect the property tax issued.

To avoid having to request a reduction in the tax value every year, a proportionate reduction in the tax value is given in the assessments for the next five income years. The square metre rate will then be reduced by as many percentage points as you are able to document that the tax value exceeded the maximum limit by.

Example - income year 2021
If you are able to verify that the tax value of your secondary dwelling is too high, it may be reduced to 90 percent of the documented market value. If the estimated market value is NOK 1 million and the verifiable market value is NOK 600,000, the tax value may be reduced to NOK 600,000 (100 percent of the market value).

This amounts to a reduction in the square metre rate of 40 percent, which will be used as a basis for the next five years.

1,000,000 – 600,000 = 400,000
400,000/1,000,000 x 100 = 40 percent

Example - income year 2022

If you can document that the tax value of your secondary dwelling is too high, it can be reduced to 95 percent of the documented market value. If the estimated market value (residential property value) is NOK 1 million, and the documented market value is NOK 600,000, the tax value can be reduced to NOK 570,000 (95 percent of the market value).

This amounts to a 40 percent reduction of the rate per square meter, which will be used as the basis for the tax value for the next five years.

1,000,000 – 600,000 = 400,000
400,000/1,000,000 x 100 = 40 percent

Example - income year 2023

If you can document that the tax value of your secondary dwelling is too high, it can be reduced to the documented market value. If the estimated market value (residential property value) is NOK 1 million, and the documented market value is NOK 600,000, the tax value can be reduced to NOK 600,000 (100 percent of the market value).

This amounts to a 40 percent reduction of the rate per square meter, which will be used as the basis for the tax value for the next five years.

1,000,000 – 600,000 = 400,000
400,000/1,000,000 x 100 = 40 percent