Municipal councils in Norway can decide whether to implement a property tax and as a result, most local authorities use the extra tax to fund spending.
Local authorities can also decide which properties will be taxed and the applicable tax rate.
At the time of writing, there are 357 municipalities in Norway, and 324 of those impose some form of property tax.
The average annual property tax was 3,713 kroner in 2023, according to figures from the national data agency Statistics Norway.
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How is the tax calculated?
Property tax is calculated based on the estimated value of the property. Local authorities can take the figures either from the Norwegian Tax Administration or by estimating the market value itself.
This value will typically be the average property price per square metre in your area multiplied by the size of your dwelling.
The property valuations used to calculate the property tax are normally a couple of years old.
Once the property value has been determined, the taxable value is calculated. The taxable value is the percentage of the property’s value used to determine how much property tax should be levied.
The Norwegian Tax Administration has an online tool where you can calculate the taxable value of your home.
Meanwhile, the Property Tax Act states that the tax value for residences is 70 percent.
Plenty of municipalities in Norway may have a reduction or deduction on residential properties to ensure the tax isn’t too high.
For example, in Oslo, a deduction of up to 4.7 million kroner is given to all homes. These deductions are on the taxable value of your home. This means that it is 70 percent of your home’s value minus the deduction.
If the deduction (if one applies) is greater than the home’s value or tax value, no tax will be charged.
How much will you be charged?
When it comes to individual areas, how the tax is calculated can be quite complicated. This is due to the different tax rates applied by different areas and the potential inclusion of deductions.
Therefore, calculating your property taxes is difficult. For a rough idea, most of Norway’s municipalities share information on how the tax works in that area and any deductions in place.
Some areas will also not charge property tax if the tax bill is below a certain figure. In Oslo, property taxes of less than 300 kroner are waived.
You can follow some of these links to learn more about how property tax is calculated in Oslo, Bergen, Trondheim, Tromsø, Stavanger, and Kristiansand.
For more individual information on where you live, you can either contact your municipality directly or search for where you live, followed by “eiendomsskatt.” Remember to use only the official websites of your local authority, and these websites typically won’t ask you to input any personal information.
When will I be charged?
Once again, how payment is collected depends on where you live. Some areas collect quarterly payments, while others collect monthly payments.
Furthermore, different areas will send out invoices at different times of the year. However, you can expect to see the tax slip in your inbox during the year’s first quarter.
Details on property tax payments, including how much you owe and when payment will need to be made, will be sent to your digital mailbox. The invoice for property tax will also be sent to your online bank or digital mailbox.
If you can’t pay
Your municipality may allow you to defer payment until later, but you will be charged interest on this.
Some areas will also have exceptions, such as if you are unable to pay after a large loss of income due to an accident or illness or an event like a fire that has damaged your home.
Outside of these instances, you can expect the normal debt collection process to happen.
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