Tax deduction card for pensioners
Income from employment and income from your pension provider is not taxed using the same tax rate. When you start taking out a pension, it’s important that you change your tax deduction card.
Remember to include any holiday pay from previous employers when calculating the tax that will be deducted. Holiday pay is always taxable income, even though it’s usually not subject to advance tax deductions. Remember to update your tax deduction card in order to avoid underpaid tax. If the holiday pay is paid out without any tax being deducted, the amount must be entered under the item “Salary not subject to withholding tax” on the tax deduction card application.
How much tax do you pay as a pensioner?
There are many factors to consider before we can tell you how much tax you must pay as a pensioner:
- How much pension do you receive – including pension from NAV, your employer and any private pension schemes.
- How much salary you receive in addition to your pension, if any.
- Your wealth and assets etc.
All these factors make it hard for us to give a general answer, but you can calculate your own tax using this calculator. Remember that the calculator does not change your tax deduction card.
Before using the calculator, you must know approximately how much pension you’ll receive. You can see your retirement pension from NAV at Din pensjon (Your pension – in Norwegian only). If you’re a member of several pension schemes, either privately or through an employer, you must remember to include these in your calculation.
Working and taking out old-age pension
If you’ll continue receiving salary at the same time as taking out a full or partial retirement pension, you must change your tax deduction card. Old-age pension is taxed at a lower rate than income from employment.
Both NAV and your employer retrieve your tax deduction card electronically from the Tax Administration. If you have a table-based card, you must make sure that only your main employer, i.e. the one who pays the most (salary or pension), uses the table-based deduction.
If you live in Norway while receiving pension and/or disability benefits from abroad, these payments are taxable in Norway. It’s important that you include this income in your tax deduction card, so that you avoid underpaid tax.
If you receive pension and/or disability benefits from Norway, you must pay tax on this in Norway, even if you’re not a tax resident in Norway. Your pension or disability benefit provider retrieves your tax deduction card electronically and deduct tax for you. You must check that your tax deduction card is correct.
You can read more about withholding tax on pension and disability benefits here