Economy and tax

The Tax System

Everyone who works in Norway pays tax. The tax finances welfare services such as health, education, infrastructure, and social security schemes. The tax system is progressive, which means that higher income results in a higher tax rate.

Tax Card

Before you start a job, you must have a tax card from the Tax Administration. The tax card shows the employer how much tax should be deducted from your salary. You can order a tax card at skatteetaten.no with BankID.

Tax Return

Every year in March, you receive the tax return (formerly income statement). It contains pre-filled information about income, assets, and debts. You should check that the information is correct and, if necessary, correct or add missing information.

The deadline for submitting the tax return is normally April 30.

Common deductions

Banking system

BankID is Norway’s digital identity solution and is used for online banking, public services, and signing documents. To open a bank account, you need valid identification and a Norwegian personal number or D-number.

Important banking services:

• Online banking for bill payments and transfers
• Vipps for mobile payments
• BSU (housing savings for youth) with favorable interest rates and tax benefits
• Savings account and funds for long-term savings

Personal finance

Good financial management is important to avoid debt problems. Create a budget that shows income and expenses. Important advice:

• Always pay bills by the due date to avoid collection fees
• Avoid consumer loans with high interest rates
• Start saving early, even small amounts count
• Always check the terms and conditions before signing agreementsIf you encounter financial problems, the municipality’s debt counseling or NAV can help find solutions.

Economy and taxes are part of the syllabus for the social studies test . Also read about working life and welfare and immigration and integration . Practice with a free theory test .