Norway’s tax system is built to be predictable and largely automated, which is a relief once you know how the pieces fit together. If you are moving here to work, planning a longer stay, or setting up a business, you will meet a few new words like skattekort and skattemelding. As a Norwegian who grew up filing here and later helped many newcomers get started, I can tell you: once you get your ID number and digital access in place, the rest follows in a clear rhythm.
Short answer: to pay taxes in Norway you first secure a Norwegian ID number or D-number, then apply for a tax deduction card (skattekort) so your employer withholds the right amount. Each spring you receive your tax return (skattemelding), you check and correct it, and later get a tax settlement (skatteoppgjør) that shows if you get a refund or owe residual tax (restskatt). Self-employed people and many freelancers pay advance tax (forskuddsskatt) in set installments, and businesses that cross the VAT threshold must register for VAT (MVA) and file returns. Payments are done through your online bank using a KID reference number.
Let’s take a deeper dive into the world of paying taxes in Norway, step by step, with the little details locals actually use.
Understand the basic structure of Norwegian taxes
Income tax in Norway is progressive and includes National Insurance contributions that fund healthcare and social benefits. You pay tax to the state and your municipality. Most regular employees never “send money” each month, because employers withhold tax directly from your salary using your tax deduction card. You still need to verify your annual return and keep your information updated so the right amount is withheld.
A few other pieces sit alongside income tax:
- VAT (MVA) applies to most goods and services if your business turnover passes a set threshold within 12 months.
- Property tax (eiendomsskatt) is decided by municipalities, so it varies by where you live.
- Capital income such as interest or dividends is reported automatically in many cases, but you must still confirm it in your tax return.
Get your Norwegian ID number or D-number
Before anything else, you need an identity number:
- Fødselsnummer (National ID number) if you are settling here or staying long term.
- D-nummer if you are working temporarily or do not yet qualify for a full ID number.
This number unlocks everything from a bank account to public services. Once you have it, set up BankID or similar login so you can access your digital mailbox and tax pages securely. Without digital access, doing taxes in Norway becomes unnecessarily slow.
Local tip: update your address promptly. Many first-year tax letters still catch people by surprise because they moved apartments and forgot to update their details.
Apply for your tax deduction card (skattekort)
Your skattekort tells your employer how much to withhold every payday. You request it online once you have your ID number and a job contract or expected income. If your situation changes during the year, update your skattekort so the monthly withholding adjusts. If you do not have a valid tax card, your employer must withhold 50 percent, which hurts and takes time to fix.
Important: your employer does not “keep” that money. They transfer the withheld tax straight to the authorities on your behalf. You still need to check the annual figures later.
Employees: what to check on your payslip
Norwegian payslips show gross salary, tax withheld (skattetrekk), pension contributions, and other items like holiday pay accrual. The employer’s social cost (arbeidsgiveravgift) is not your tax and will not reduce your salary, though it appears in employer reporting. Each month, verify that the tax basis and withholding look sensible for your income. If you take on an extra job, update your tax card so the total withholding fits your real annual income.
What I tell friends: if you get a raise, change jobs, or add side income, log in and refresh your card. It takes a few minutes and can prevent a big residual tax bill.
Your annual tax return (skattemelding)
Each spring, you receive your skattemelding. Much of it is prefilled from employers, banks, and other institutions. Your job is to check, correct, and submit. Look closely at:
- Salary and benefits from each employer
- Interest paid and received
- Rental income if you rent out a room or a property
- Deductions you qualify for, for example commuting costs, union fees, or certain education costs connected to work
Do not skip this step. Even though the form is mostly prefilled, you are responsible for its accuracy. Small errors, like a missing month of rent reporting or a second job not appearing, can cause surprises later.
Tax settlement, refunds, and residual tax
After your return is processed, you receive the skatteoppgjør, which confirms whether you get a refund or owe restskatt. Refunds go straight to your bank account if you have registered one. If you owe money, you will receive payment details that include a KID number. Use your online bank to pay by the due date. You can usually split residual tax into multiple installments if the amount is large.
Personal tip: turn on eFaktura or AvtaleGiro for tax invoices when available, and register your bank account for refunds. It removes the stress of watching your mailbox for paper letters.
The PAYE option for some foreign workers
Some newcomers are offered a simplified flat-rate PAYE scheme selected when applying for the tax card. It trades deductions for a straightforward withholding rate. This suits people on shorter stays with simple finances. If you stay longer or have deductions that matter, the ordinary tax system can be better. You can switch, but it must be done properly. If you are unsure, run the numbers or ask an adviser before you lock in your choice.
Self-employed and freelancers: advance tax and bookkeeping
If you run an enkeltpersonforetak (sole proprietorship) or freelance regularly, you pay forskuddsskatt in set installments during the year. The installments are based on your expected profit. Keep your estimate realistic and update it if your income changes so you are not hit with a big bill later.
Practical pointers that save headaches:
- Set aside money monthly. Many of us keep a separate high-yield account where we park a fixed share of each invoice for tax and VAT.
- Register for VAT (MVA) once your taxable turnover passes the threshold within 12 months. After registration, you add VAT to invoices and file VAT returns.
- Use proper invoicing and accounting tools. Norway is strict about documentation. Digital systems that create KID references, match bank transactions, and produce reports will pay for themselves in time saved.
Paying from abroad or after you move
If you leave Norway but still owe restskatt, you can pay from a foreign account. The settlement shows IBAN, BIC, and KID. The KID reference is crucial because it tells the system exactly which claim you are paying. If you have lost the KID, log in to your tax pages to regenerate it. When in doubt, contact the tax office before sending an international transfer without the reference.
Property owners: municipal taxes and valuation
If you own a home, you may encounter eiendomsskatt depending on your municipality. This is billed separately from income tax. You also have a property valuation that flows into the annual tax return. Check that the living area, build year, and other details are correct. If you renovate, remember that certain changes can affect valuation in future years.
Students, seasonal workers, and part-time jobs
Students who work part time still need a skattekort. If your income is low across the year, update your card to prevent over-withholding. Seasonal workers should apply for their tax card as soon as they have a job offer. If you switch employers mid-season, tell the new employer to fetch your existing card so the withholding stays consistent.
Classic first-summer mistake I see: forgetting to update the expected income after picking up extra shifts. The system then withholds too little, and a small residual bill appears later. Two minutes online prevents it.
How to actually make a payment
Most people never make monthly payments themselves, but if you do owe money:
- Log in to your tax account and open the payment notice.
- Copy the KID number, amount, and account details.
- Pay from your online bank.
- Keep the confirmation until the claim shows as paid in your tax account.
Always include the KID. Without it, your payment might float in the system and require manual matching.
What to do if you cannot pay on time
Life happens. If you see a bill you cannot cover by the deadline, apply for a payment plan early. The sooner you contact the authorities, the more flexible the plan tends to be. Late fees and interest are far less painful when you get ahead of the problem.
Common pitfalls to avoid
- No valid tax card. This triggers 50 percent withholding. Fix the card, then ask your employer to apply the new rate going forward.
- Not checking the prefilled return. Data is good, not perfect. Review every line.
- Forgetting to register for VAT. Once you cross the threshold, registration is not optional.
- Mixing business and personal money. Separate accounts make audits and bookkeeping cleaner.
- Ignoring digital mail. Important messages arrive in your online inbox. Turn on notifications and keep your email updated.
Quick checklist for newcomers
- Secure your ID number or D-number and set up BankID.
- Apply for your skattekort and update it with any change in income.
- Review your skattemelding each spring and correct errors.
- Register a bank account for refunds, and enable eFaktura or AvtaleGiro.
- If self-employed, estimate profit, set aside money monthly, and track when you must register for VAT.
- Save all documentation for income, expenses, and deductions.
A few personal pointers that make Norway easier
I always keep a simple rhythm: on payday I glance at my payslip to see the tax and pension lines, at month-end I drop a note in my expense log for anything tax-relevant, and in early spring I block an hour to review the skattemelding with coffee and last year’s records. If I pick up side projects, I nudge my skattekort so the withholding keeps pace. These tiny habits mean my skatteoppgjør rarely holds surprises.
If you remember only one thing, remember this: keep your details updated and read your digital mail. Norway’s system works beautifully when it has the right information, and it will quietly correct course when your life changes if you tell it in time.