Norway's 2027 state budget: what the tax cut gives you from January, and what costs more

How much less tax will I pay in 2027?

With standard deductions, the budget lowers your tax by around 0.2% of your salary plus about 250 kroner. That is around 1,150 kroner a year on a 450,000 kroner salary, 1,550 on 650,000 and 2,050 on 900,000. Per month it is between 96 and 171 kroner. The figures are a proposal and can change.

The cut has two parts. The national insurance contribution (trygdeavgift) on wages falls by 0.2 percentage points, from 7.6% to 7.4%, which is 2 kroner less tax per 1,000 kroner you earn.^[1] The personal allowance (personfradrag) rises from 114,540 to 120,180 kroner. That is about 1,200 kroner more than a normal adjustment for wage growth, and it lowers tax by around 250 kroner for everyone whose income is high enough to use the whole allowance.^[3]

This is how the Finance Ministry counts it too. An employee earning 750,000 kroner with standard deductions pays about 1,800 kroner less tax in 2027, according to the ministry.^[4] The national insurance cut alone is 1,500 kroner of that.^[3] The distribution table in the bill shows the same pattern: around 1,000 kroner on average for the middle income groups and 3,200 kroner for the top tenth.^[3]

These figures are for wages. Pensioners do not get the national insurance cut, because the rate on pensions stays at 5.1%.^[1] They do get the higher personal allowance, and the government also raises the tax credit for pension income by up to about 750 kroner, mostly for low pensions.^[4] The self-employed see the rate on business income fall from 10.8% to 10.6%.^[1]

Why does my tax deduction fall by more than the cut?

Because the bracket tax thresholds and the cap on the standard deduction also rise with expected wage growth of 4%. If you earn the same in 2027 as in 2026, you pay several thousand kroner less tax. A pay rise uses up most of that adjustment, while the cut itself remains.

This table shows the whole tax bill on the same salary in both years. It is useful if your pay does not change from December to January, which is true for many people, since the annual wage settlement comes later in the year. The difference is bigger than in the table above because it also includes the normal yearly adjustment, which is not part of the cut.

The jump at 900,000 kroner happens because the bracket 3 threshold moves from 725,050 to 754,050 kroner.^[1] Almost 29,000 kroner of salary is then taxed at 4.0% bracket tax instead of 13.7%. If you claim deductions for interest, commuting or anything else, your figures will differ. The Norwegian Tax Administration's tax calculator for 2027 is the best place to check them once it is out.

Which tax rates change in 2027?

The national insurance contribution on wages goes from 7.6% to 7.4%, and the personal allowance from 114,540 to 120,180 kroner. Tax on ordinary income stays at 22%, and bracket tax keeps its rates. The thresholds and the cap on the standard deduction rise by 4%. BSU, the tax-free card limit and the commuting deduction stay the same in kroner.

Wealth tax gets a higher allowance, 1,990,000 kroner for a single person and twice that for a married couple. The rates stay as they are.^[1] BSU, the home savings scheme for under-34s, stays the same in kroner: you can still save 27,500 kroner a year and get a 10% tax credit, up to 300,000 kroner in total.^[1] The tax-free card limit stays at 100,000 kroner.^[3]

What gets more expensive in 2027?

Most duties on goods rise with inflation, 2.7%. Electricity tax goes from 7.13 to 7.32 øre per kWh, and alcohol, tobacco and snus cost slightly more. Petrol and diesel go up by a few tens of øre per litre. The biggest change is that the VAT exemption for new electric cars only covers the first 150,000 kroner.

Fuel duty has two parts that move in opposite directions. The CO2 tax on petrol rises from 3.80 to 4.40 kroner per litre, while the road use tax falls from 3.77 to 3.37.^[2] Together that is 20 øre more per litre before VAT, around 25 øre with VAT. For diesel it is 27 øre before VAT. The government says the aim is to keep duties on petrol and diesel unchanged in real terms.^[3]

Electricity tax is a small item. 0.19 øre more per kWh is around 30 kroner a year before VAT for a household using 16,000 kWh. The VAT exemption for electric cars matters more if you are buying a new car: it covers the first 150,000 kroner instead of 300,000, and the government expects it to raise 3.8 billion kroner in 2027.^[6] If you are buying a new electric car around new year, ask the dealer which date decides the rules for your car.

What does the budget mean for my electricity bill?

Norgespris, the state's fixed electricity price, is proposed at 45 øre per kWh plus duties in 2027, up from 40 øre this year. With 25% VAT that is around 56 øre. The electricity subsidy covers 90% of the price above 79 øre per kWh before duties. Whether to choose Norgespris or spot price is a separate decision.

The government estimates that Norgespris and the electricity subsidy for households will cost just under 16.4 billion kroner in 2027.^[5] Your Norgespris ends on 31 December 2026 and does not renew by itself. We cover the choice for 2027 in Norgespris or spot price in 2027.

When will I see the tax cut on my payslip?

In January 2027. The Norwegian Tax Administration makes a new tax deduction card for 2027 once the Storting has adopted the tax rules, and your employer fetches it. The 2026 card came out on 15 December 2025. You do not need to do anything to get the cut, but you should check that the figures on the card are right.

The tax deduction card for 2026 came out on 15 December 2025, and 4.4 million people were told it was ready.^[7] Employers and NAV fetch the card directly from the Tax Administration. If you change it, they fetch the new version without you having to tell them.^[7]

With table deduction (tabelltrekk), the whole year's tax is spread over 10.5 months. No tax is deducted in June, and only half in December.^[8] The cut is spread over the same months, so on a normal payslip the difference is slightly larger than the yearly amount divided by twelve. Compare January 2027 with November 2026, not with December, where half tax makes every number look odd.

Can the proposal change before January?

Yes. Labour governs as a minority and needs support from other parties to pass the budget. Tax rates, duties and Norgespris can all change in the negotiations. Under the Storting's own plan, the finance committee reports by 20 November, and the whole budget is to be adopted by 15 December.

Under the Storting's budget cycle, it votes on the spending frame for each area by 27 November, and the final budget is to be finished by 15 December.^[9] The figures in this article are what the government has proposed, not what will apply. We will update the article once the budget is adopted.

What should I do before January?

Do not spend the cut before it is adopted. Decide on Norgespris before new year, top up your BSU for 2026 before new year, and check your tax deduction card when it arrives in December. If you are buying a new electric car, find out which VAT rules apply to it.

1. Hold off spending it. A hundred kroner a month is a proposal until the Storting votes, and it could end up higher or lower.
2. Make the electricity choice. The 2027 price is proposed, and Norgespris or spot price in 2027 shows how to work it out on your own usage.
3. Top up your BSU for 2026. Deposits made by 31 December count for this year. The maximum is 27,500 kroner a year, in 2027 as well.
4. Check your tax deduction card in December. If it shows the wrong income, debt or deductions, change it on skatteetaten.no. Too little withheld means tax to pay the following year.
5. If you are buying a new electric car costing more than 150,000 kroner, ask the dealer what the new VAT exemption means for the price, and which date applies.
6. Look at your January payslip. If the deduction is not lower than in November on the same pay, check your tax deduction card first.

How Penge helps

A cut of 130 kroner a month disappears quickly in an ordinary month. Penge fetches your transactions from more than 2300 banks, so your January salary payment sits right next to November's, and you can see whether it actually went up. If you want the money to go somewhere specific, give it its own category and a budget. The app is available for iPhone, the bank connection is read-only, and your bank credentials are never stored.

Want to check whether your bank is supported? See which banks are supported