State Budget 2026: Key Tax and Duty Changes You Need to Know
The Støre government has presented a budget intended to balance fiscal responsibility with targeted incentives. Here are the most important changes:
1. The housing cooperative model is discontinued
- The tax-favourable “multi-step model” for property projects is closed from 15 October 2025.
- Tax-free merger of limited companies into housing cooperatives (borettslag) is no longer permitted, with certain transitional rules for projects already under way.
2. Employment deduction for young people – pilot scheme
- Approx. 100,000 people (8%) born 1991–2006 will be randomly selected to receive an employment deduction.
- Deduction: up to NOK 125,000, phased out for income above NOK 345,000.
- Purpose: to test whether financial incentives increase labour market participation.
3. Wealth tax
- New deferral scheme for business wealth: deferral of up to 3 years, interest = key policy rate + 5 percentage points (currently approx. 9%).
- Basic allowance increased from NOK 1.76 million to NOK 1.9 million (NOK 3.8 million for married couples).
- Rates unchanged: 1% (bracket 1) and 1.1% (bracket 2), but the split between the state and municipalities is changed.
4. Securities funds and fund accounts
- A standardised (flat-rate) taxation is introduced (1% of dividends received).
- The changes are intended to reduce double taxation and unintended adaptations.
5. Personal allowance and minimum deduction
- Personal allowance increased to NOK 114,210.
- Minimum deduction: salary/benefits NOK 95,700, pension NOK 75,400.
6. National insurance contribution and bracket tax
- National insurance contribution reduced by 0.1 percentage points (salary: 7.6%, business income: 10.8%).
- Bracket tax rates unchanged, thresholds adjusted in line with wage growth.
7. Other changes
- Parental deduction reduced (NOK 15,000 for the first child).
- IPS (individual pension savings) deduction increased to NOK 25,000.
- Finnmark deduction increased to NOK 45,000.
- Trade union deduction increased to NOK 8,700.
8. VAT and excise duties
- The electric vehicle exemption is reduced to NOK 300,000 from 2026, and removed entirely in 2027.
- Increased CO₂ taxes and adjustments to the road usage tax.
- Light electric vans are exempted from the traffic insurance tax.
📌 What does this mean for businesses and private individuals?
- Greater predictability in the wealth tax, but with stricter liquidity requirements.
- Incentives for young people to participate in the labour market.
- Gradual phase-out of electric vehicle benefits and increased climate taxes.
