On October 15, 2026, the Government presented its proposal for the 2026 national budget. Here is an overview of the changes relating to wealth tax.
The Government proposes a new and permanent scheme for deferring the payment of wealth tax, effective from the 2026 income year.
The main features of the scheme are:
The proposal is aimed at owners of business assets, which include assets in listed and unlisted shares, shares in companies with participation, share savings accounts and operating assets, and commercial property in sole proprietorships.
It is proposed that a revised model for calculating the tax value for properties be used to provide more accurate estimates of market value, especially for the most and less expensive ones.
The updated model utilises new technology and the values are calculated within more, geographically smaller and similar areas, but still taking into account the type of property, size and year of construction.
At the same time, it is proposed to repeal the transitional rule aimed at owners of properties in municipalities that were affected by the merger in 2020, as the new model is considered accurate for these as well.
It is proposed to increase the basic deduction from NOK 1.76 million (NOK 3.52 million for married couples) to NOK 1.9 million (NOK 3.80 million for married couples).
The proposal can be seen in conjunction with a change in the model for calculating the tax value of properties, as the increased basic deduction provides relief to the group that increases the tax value of properties.
The threshold for the second tier is maintained in real terms, which corresponds to an increase from NOK 20.7 million (NOK 41.4 million for married couples) to NOK 21.5 million (NOK 43 million for married couples).
The threshold for high valuation of a primary residence of NOK 10 million is continued in nominal terms.
In line with an earlier parliamentary decision to halve the municipal share of wealth tax over two years, it is proposed that the rate of wealth tax for municipalities be adjusted from 0.525% to 0.35% in 2026.
The rate of wealth tax to the state for wealth above the basic allowance and up to NOK 21.5 million will be adjusted correspondingly from 0.475% to 0.65% in tier 1, and from 0.575% to 0.75% in tier 2.
The change is revenue-neutral, as the income share of general income to the municipalities is adjusted so that their total tax revenues are not affected.
It is proposed to amend the provision in section 2-1 seventh paragraph of the Taxation Act so that the decisive point in time for global wealth tax liability to Norway on moving in and out is whether the taxpayer was resident in Norway at the end of 31 December in the income year.
The provision currently states that the obligation to pay wealth tax is conditional on the taxpayer being "resident in Norway on 1 January of the year in which the tax is assessed".
For a long period, this rule was practised such that it was sufficient for the taxpayer to be resident in Norway at the end of the income year (i.e. 31 December at 24:00). However, several Tax Appeals Board decisions from 2024 interpreted the rule literally, concluding that the taxpayer must be resident in Norway on 1 January of the assessment year. This meant that individuals who moved abroad on 1 January were not considered liable for wealth tax for their final year of tax residence in Norway.
The change in the provision is therefore intended to correct an unfortunate legal development and provide a more consistent regulatory framework.
It is proposed that the change enters into force from and including the income year 2026.
The Ministry also clarifies that section 4-1 of the Taxation Act, which specifies the date for determining the size of wealth as "1 January in the tax assessment year", should be interpreted as the end of the previous calendar year, and that the Ministry will consider clarifying this and related provisions in the wording of the legislation.
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