The tax rate in Norway is generally high, but it depends on your income level and job status. If you are working a 9 to 5 job, you can expect to pay around 30% of your income in taxes. This includes both national and local taxes. However, if you are self-employed or have a higher income, you may be subject to a higher tax rate. There are also a number of deductions and exemptions that can lower your overall tax burden.
Compared to other countries
Norway has a reputation for being one of the most expensive countries in the world. And when it comes to taxes, that reputation is well deserved. Norway has the highest tax rate in the European Union, with an average effective tax rate of 28.6%.
In comparison, the average effective tax rate in the EU is 20.9%. That means that Norwegians pay 7.7 percentage points more in taxes than the average European. When it comes to specific taxes, Norwegians pay more in income tax, value added tax (VAT), and property taxes than the average European.
So why do Norwegians pay so much in taxes? There are a few reasons. First, Norway has a very high-income tax rate. The top marginal tax rate in Norway is 38.7%, which is significantly higher than the EU average of 30.8%.
Second, Norway has a higher VAT rate than the EU average. The standard VAT rate in Norway is 25%, compared to the EU average of 21.3%. And finally, property taxes in Norway are also higher than the EU average.
So if you’re thinking of moving to Norway, be prepared to pay some high taxes. But on the bright side, you’ll also get access to some of the best public services in the world!
• Norway has the highest tax rate in the European Union
• The average effective tax rate in the EU is 20.9%
• Norwegians pay 7.7 percentage points more in taxes than the average European
• In comparison, the average effective tax rate in the US is 25.9%
• The top marginal tax rate in Norway is 38.7%, which is significantly higher than the US average of 37%
• The standard VAT rate in Norway is 25%, compared to the US average of 21.3%
Planning on moving to Norway and have questions regarding tax? Please check out Skatteetaten (Important finance website with information in Norway)