Car allowance (distance-based allowance)
Employers can pay a distance-based allowance to their employees for work-related travel by private car. You need to pay tax on a small part of this allowance.
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.