Will I get a tax surcharge or refund in Norway?

This is one of the most common questions asked by people working in Norway: Will I receive a tax refund after filing my annual tax return or will I have to pay extra? The tax system in Norway is based on the fact that we pay tax advances throughout the year (withheld by our employer or paid by us in the case of ENK), and the final settlement takes place only after the end of the tax year. At that time, Skatteetaten issues a so-called skatteoppgjør, or the final result – and this is where the answer to the question: surcharge or refund comes in. It's worth knowing how this mechanism works, what factors influence the final result, and why sometimes, instead of the expected refund, an underpayment can occur.

Tax advances and annual settlement (skatteoppgjør)

In Norway, income tax is paid in advance during the year, followed by an annual settlement. Employees have their tax deducted monthly by their employer using a tax card (skattekort), while persons running a sole proprietorship (enkeltpersonforetak, ENK) pay quarterly advances (forskuddsskatt) four times a year:

• March 15,
• 15th of June,
• September 15 and
• 15 December.

At the end of the tax year, you must file a tax return (skatmelding), on the basis of which the Norwegian Tax Agency (Skatteetaten) makes its annual settlement.

Result of the annual settlement (skatteoppgjør) will show whether you paid too much tax during the year or too littleIn other words, it indicates the amount to be refunded or paid.

• If more was deducted from your salary/taken in advance during the year than the final tax amount, an overpayment occurs – you will then receive tax refund (skatt til gode). These funds are returned to your bank account usually within a few weeks of receiving your settlement.
• However, if the advance payments were too low and the tax due turned out to be higher than the sum of the advance payments, an underpayment occurs - then you have to pay additional tax payment (residual tax).

The timing of receiving your annual tax return varies – most people receive it between March and June, and by October/November each year at the latest.

If you have a tax surcharge, Skatteetaten will send you an invoice with the amount due. For larger amounts (over NOK 1000), the payment is divided into two equal installments, usually due around August 20 and September 24 (the exact dates depend on when you receive your settlement). Surcharge amounts under NOK 1000 are paid in one lump sum, while very small amounts under NOK 100 are not due at all. Similarly, if your tax refund is less than NOK 100, the tax office will not pay it (such a small overpayment will, for example, be offset against future liabilities). In the vast majority of cases, however, the refund or surcharge amounts are greater than NOK 100.

How is income tax calculated in Norway?

The Norwegian tax system is progressive and consists of several elements. The final annual income tax (interconnection) is the sum of the following components:

General income tax (alminnelig inntekt)

The basic state and municipal tax is 22% (based on 2025 rates). It is calculated on the so-called general income after deductions, i.e., gross income reduced by, among other things, tax-deductible costs and tax relief. Therefore, this tax is 22% of taxable income.

Social security contribution (trygdeavgift)

This is the equivalent of a social security contribution, which amounts to 7,7% of income from work in 2025 (11% for self-employed people – read more here (click!)).

This contribution is calculated from the first krona earned above the so-called tax-free allowance for trygdeavgift (in 2025, it is NOK 99,650 per year). Every working person pays trygdeavgift – it finances the Norwegian social security system (folketrygd).

Progressive tax on high incomes (trinnskatt)

This is an additional tax levied on higher income brackets. As income increases, it is paid at increasing rates:

• 1st threshold: 1,7% rate for income above NOK 217,400,
• 2st threshold: 4,0% rate for income above NOK 217,400,
• 3st threshold: 13,7% rate for income above NOK 217,400,
• 4st threshold: 16,7% rate for income above NOK 217,400,
• 5th threshold: 17,7% rate for income above NOK 1,410,750.

The thresholds given are for the year 2025 – the Norwegian government updates the threshold amounts annually, but the percentage rates in the individual brackets usually increase by approximately 0,1 percentage points per year or remain constant. Trinnskatt causes people with higher incomes to pay proportionally higher taxes.

Tax-free amount and deductions

Before tax is calculated, certain reliefs are deducted from income. Every resident is entitled to personfradrag (personal allowance) – in 2025 it amounts to NOK 108,550. In addition, employees are entitled to the so-called standard employee deduction (minstefradrag) in the amount of 46% of the income earned, maximum NOK 92,000 per year. Minstefradrag replaces minor costs of obtaining income (they do not need to be documented - the deduction is granted automatically up to the above-mentioned limit).

For example, someone earning around NOK 120,000 per year might pay a nominal tax, as after applying minstefradrag and personfradrag, their tax base might be NOK 0. However, it's important to remember that trygdeavgift is calculated separately from gross income above a threshold of around NOK 100,000, so even with a low income, a small social security contribution may be due.

Adding up the above components, the total income tax in Norway for an average person with a standard income is approximately 24-32% – this effective rate consists of a 22% tax on general income reduced by reliefs and trygdeavgift, possibly increased by trinnskatt (if income exceeds the thresholds).

In practice, employers deduct advance payments throughout the year at the projected interest rate calculated on the tax card, so that the total amount corresponds to the projected annual tax. However, it may happen that the taxpayer's situation deviates from the projections, in which case a refund or additional payment appears in the annual tax return.

Extra payment or refund – what does it depend on?

Whether you will receive an additional payment or a refund in your tax return depends solely on whether the sum of the advance payments covered the final tax for a given year.

• If your advance payments (collected by your employer or paid yourself) were higher than the tax due, you will receive a refund.
• However, if you have paid too little during the year, you will have to pay the remaining difference.

The ideal situation is, of course, a zero settlement, but in practice it is rarely possible to predict the tax down to the krona (or the above-mentioned difference of +- 100 NOK).

The Norwegian tax system generally tries to avoid large surcharges – tax deductions are often set conservatively to leave some margin for tax refunds. Nevertheless, both surcharges and overpayments do occur.

Why do I have to pay extra?

“Why a refund?” nobody asks 🙂 Below are some typical reasons why the settlement may show an underpayment (the need to pay additional tax) or an overpayment:

Outdated data on the tax card

If your income during the year turned out to be higher than the tax card assumed, or the tax relief you were entitled to was lower, the percentage of advance payments collected may have been too low. As a result, you paid too little tax, resulting in a tax penalty. residual tax (surcharge). The reverse situation (earnings lower than forecast or larger relief) results in an overpayment and refund.

Working for more than one employer

If you're employed by multiple employers simultaneously, you need to properly split your tax card. Only your primary employer should use the tabelltrekk card, while the remaining employers should withhold tax based on a percentage rate. If each employer deducts withholding tax based on the table (ignoring the employee's other income), the total withholding amount will be too low, and the taxpayer will receive a surcharge. Alternatively, if you have a percentage card, each employer should withhold tax based on a percentage rate.

Smaller reliefs than expected

A typical example is interest on NOKedyt. If your tax deduction card assumed large interest deductions (based on previous years), but you actually paid less interest in a given year, you are entitled to a smaller deduction from your income. A smaller deductible expense means a higher tax base and, therefore, a higher tax than expected – so you will incur a surcharge.

Change in life situation

Tax relief in Norway depends on your circumstances (e.g., single parent status, childcare expenses, commuting expenses, benefits, etc.). If your circumstances changed during the year and you didn't update your tax information, your tax advances were calculated based on outdated information.

For example, losing single-parent status, a child graduating from preschool, or shortening daily commutes – all of these factors reduce eligible deductions and reliefs, causing your tax due to increase (compared to your forecast) and potentially resulting in a surcharge. However, if these changes have the opposite effect (e.g., you started taking advantage of larger reliefs that the tax authority didn't take into account), you will receive a refund in your tax return.

Errors or omissions in the annual tax return

The reason for the additional payment may also lie in the tax return itself. Skattekort relies on information from previous years and data from payers, but if you don't check your annual return, it may contain incorrect or incomplete information. For example, the tax office may not have received information about a certain relief in time, which you must add yourself. If you have made corrections to Skattemelding (e.g., you added an omitted deduction or adjusted your income), your final tax may have changed from the initial calculation, which affects your refund/surcharge amount. It's always worth carefully verifying all amounts in your return.

Podsumowując… – To sum up…

To avoid unpleasant surprises in the form of a large surcharge, it's a good idea to update your tax card regularly throughout the year—for example, after taking on additional work, a significant raise, or changes affecting tax deductions. Skatteetaten allows you to modify your tax card online at any time, allowing you to adjust your tax deductions to your current situation.

If you already know that you will have a large restskatt, you can partially pay it in advance – by paying the so-called additional advance (additional advance payment) before May 31st of the following year. This will allow you to avoid interest on the additional payment, which accrues from July 1st until the payment due date in August/September. In other words, by paying the outstanding tax by the end of May, you save yourself additional costs.

Kildeskatt 25% – no refund or surcharge, but is it worth it?

People coming to Norway to work can benefit from a special simplified tax system, called kildeskatt på lønn (25% withholding tax). Under this system, the employer deducts a fixed 25% tax from the salary, which already includes the social security contribution (trygdeavgift 7,7%).

In this way, the tax is settled on an ongoing basis – the employee does not have to submit an annual tax return (skatmelding), and the 25% advance payment is the final tax. Therefore, under the Kildeskatt system, there are no refunds or additional payments after the end of the year – we do not receive skatteoppgjør, because the tax was "closed" along with the wages and advance payments made at that time. Exceptions may be made in error situations, for example, if the employer mistakenly withheld more than 25% or if we obtained an exemption from trygdeavgift during the year – in which case the overpayment is refunded separately in so-called skattekvittering.

Not having to file a return and having a flat tax rate are a significant advantage – it's no wonder many people are tempted by the Kildeskatt. Unfortunately, this simplification often proves financially disadvantageous. Why is the 25% kildeskatt not worth it? Because we pay 25% tax on the first krona we earn, without any deductions.

For low- and middle-income earners, this results in higher taxes than under the standard system. For example, if you earn less than NOK 40.000 gross per month, under the standard system, thanks to the personal allowance and deductions, you could pay much less tax, whereas under the Kildeskatt (kildeskatt), you'll ALWAYS pay the full 25%.

You also lose the ability to deduct items like interest on NOKedyt, commuting expenses, travel allowances (pendler), childcare expenses, and many other deductions. There are no deductions under the Kildeskatt (kildeskatt) – 25% is deducted from the gross amount without deducting any costs. As a result, the effective tax rate may be several percentage points higher than the standard tax rate.

Remember that kildeskatt is voluntary! Every new foreign employee can choose whether to pay tax at a 25% rate (in which case the tax office will issue the appropriate tax certificate) or according to the normal rules. By default, if you don't select this option, you'll likely be subject to the Kildeskatt tax in your first full year of employment in Norway.

However, you have the right to opt out of this system. up to 3 years back and in most cases standard taxation is more advantageous. Kildeskatt might only make sense for people who are coming for a very short stay, don't intend to use any deductions or benefits, and want to avoid filing a tax return, but it can also be useful for those with very high earnings (over NOK 45.000 per month). However, if you're not earning a fortune, are planning a longer stay, or are eligible for any tax breaks, it's best to call us: +47 21 38 38 21 Mon-Fri 9am-21pm and see if it's worth it to opt out of the kildeskatt – then you can often get a tax refund of up to NOK 25.000.

Summary

Filing taxes in Norway is a significant source of questions and doubts for many Poles living and working here. The final result – tax refund and/ or additional tax payment – depends primarily on whether the advance payments collected during the year were sufficient in relation to your actual income and tax relief. If you paid too much, you'll receive a refund. If you paid too little, you'll face an additional payment.

Updating is of great importance skattekort and ensuring it reflects your actual situation. This helps avoid unpleasant surprises and minimize the risk of high surcharges. It's also worth remembering that a special system kildeskatt 25% means no additional fees or refunds, but it is usually not profitable - most people are better off with the standard settlement.

That's why the best solution is to approach your taxes consciously: check your tax return, update your information throughout the year, and take advantage of available deductions. This way, you can be sure that your annual tax return in Norway won't be a surprise – and in many cases, will result in a nice tax refund in your account.

Do you want to find out if you will receive a surcharge or a refund, or if it is worth canceling your kildeskatt?
Contact us: +47 21 38 38 21.
We are available Monday through Friday from 9:00 a.m. to 21:00 p.m. and we will be happy to help!

Author of the article: Marcin – marcin@efirma.no