Rate for:
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.
The tax-free distance-based allowance rate is in 2018 NOK 3.50 per kilometre, regardless of distance traveled.*
Rates also applies to the use of electric vehicles and for employees with workplace in Tromsø. Rates also applies to work-related travels abroad.
Read more about the new rules (in Norwegian only).
* The distance-based allowance rate for work-related travel by private car for «Statens sats for kjøregodtgjørelse», that you will find in Statens reiseregulativ (Norwegian only), is NOK 3.90 per kilometre.
The gap between the two rates means that the last 0.40 NOK allowance paid per kilometre is taxable.