Car - rate for tax-free allowance (distance-based allowance)
Employers can pay a distance-based allowance to their employees for work-related travel by private car. Some portions of this allowance may be taxable.
The distance-based allowance not subject to withholding tax can be paid without withholding tax being deducted. The rate for the distance-based allowance not subject to withholding tax is equal to the amount you can receive for the tax-free distance-based allowance.
The option of claiming a deduction for using a private car for work-related travel correspond to the employer’s option of providing tax-free coverage. However, the deduction will be included in the minimum standard deduction. This means that you may claim a deduction according to the rates below if your total work-related expenses are higher than the minimum standard deduction. If the expenses do not exceed the minimum standard deduction, you’ll only be granted the minimum standard deduction.
Distance-based allowance that is tax-free and not subject to withholding tax and deduction rates when using a private vehicle for work.
The rates apply regardless of distance travelled, as well as for travel to other countries.
|Vehicle||Kroner per kilometre
|Car (including electric car)||NOK 3.50 per km*|
|Motor boat||NOK 7.50 per km|
|Snowmobile and ATV||NOK 10.00 per km|
|Heavy motorcycle (up to 125 ccm)||2,95 kroner per km|
|Moped or light motorcycle (up to 125 ccm) and other motorised means of transport||NOK 2.00 per km|
|Rates for additions||Kroner per kilometre|
|For passenger||NOK 1.00 per km per passenger|
|For driving on forest and construction roads||NOK 1.00 per km|
|For bringing equipment and materials (equipment that because of its weight and/or condition would not be suitable for transport in the trunk or on a roof rack, for example when using a trailer)||NOK 1.00 per km|
* You can find the government’s rate for car allowances in the government’s scale for travel expenses (in Norwegian only). The rate is set to NOK 4.48 per kilometre. In practice, the difference between the two rates means that you pay tax on the last 0.98 kroner that you're paid per kilometre.