Tax deduction cards for pensioners

When you become a pensioner, it’s likely that your financial affairs change. Read on to learn what changes you need to make in your tax deduction card.

You must update the numbers in your tax deduction card

You’ll still have a tax deduction card, and pensions are taxed at the same rate as income, but the national insurance contributions are not as high. Recipients of a retirement pension or contractual early retirement pension (AFP) up to a given amount are also entitled to an extra tax deduction
Those who pay your pension deduct tax in the same way as employers. To ensure that they deduct the correct amount of tax, it’s important that you check whether the information is correct and, if necessary, update the numbers in your tax deduction card.

Calculate what your tax will be

You can calculate an estimate of what your tax will be.

Remember that your tax deduction card does not change automatically.

If you

What you need to do:

You must enter your total pension this year and for how many months you’ll withdraw a pension.

Pensioners receiving a retirement pension from the National Insurance Scheme or AFP up to a given amount are entitled to an extra tax deduction. If your annual pension payment is high, you’ll pay more tax than a pensioner with a low annual pension payment. This is because the tax deduction is reduced for high pensions.

If you’ll be paid holiday pay this year, you must include the holiday pay as salary income. Holiday pay is always taxable in the year it is paid to you.

You can still work alongside receiving a retirement pension from the National Insurance Scheme without your pension being reduced.

What you need to do:

Pensioners receiving a retirement pension from the National Insurance Scheme or AFP up to a given amount are entitled to an extra tax deduction. If your annual pension payment is high, you’ll pay more tax than a pensioner with a low annual pension payment. This is because the tax deduction is reduced for high pensions.

Do you have a table-based tax deduction card?

If you have a table-based card, you must make sure that only your main payer uses the table-based deduction. This is the one who pays you the most salary or pension. You must contact the payer to let them know about this.

 

You can still work alongside receiving a retirement pension from the National Insurance Scheme without your pension being reduced.

What you need to do:

Pensioners receiving a retirement pension from the National Insurance Scheme or AFP up to a given amount are entitled to an extra tax deduction. If your annual pension payment is high, you’ll pay more tax than a pensioner with a low annual pension payment. This is because the tax deduction is reduced for high pensions.

Do you have a table-based tax deduction card?

If you have a table-based card, you must make sure that only your main payer uses the table-based deduction. This is the one who pays you the most salary or pension. You must contact the payer to let them know about this.

 

Specific information if you

What you need to do:

In the tax deduction card, you must add the field for type of pension - AFP, your total pension this year and for how many months you’ll withdraw a pension.

What you need to do:

When you’re logged in to your tax deduction card, you must do the following:

  • tick the box for "I have received disability benefits before old-age pension". You must state how much you’ll receive in disability benefit in the year before changing to retirement pension.
  • in the field "Old-age pension from the National Insurance scheme", enter how much you expect to be paid in retirement pension this year, how many months you’ll receive the retirement pension and then "Select withdrawal" (retirement percentage). The withdrawal (retirement percentage) describes your withdrawal rate out of a full pension.

What you need to do:

You’ll be paid a survivor’s pension until you withdraw your retirement pension. The pension is reduced against income and will be stopped if you, the survivor, remarry.  You can read more about the survivor pension on NAVs website.

If you live in Norway while receiving a pension and/or disability benefits from abroad, these payments are taxable in Norway.

What you need to do:

If it’s not listed in your tax deduction card, you must add it to avoid underpaying tax.

If you live abroad and receive a 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.

What you need to do:

 

Read more about withholding tax on pension and disability benefits.