Wealth Tax in Norway (2026 Figures)

If you live in Norway, your global net worth is subject to wealth tax. But how does it work, and what exemptions apply? Here’s everything you need to know about Norway’s wealth tax in 2026.

Wealth tax has rarely been out of the headlines in Norway in recent years. High-profile departures by wealthy business figures, rising interest rates, and now a major overhaul of how homes are valued for tax purposes have pushed the issue firmly back into public debate.

Recent attention has focused on two parallel developments. First, the tax base for higher-value homes has been tightened sharply since 2022, ending decades of relatively generous treatment.

Second, from the 2026 tax year, a new national valuation model will reassess the market value of homes, particularly those that have long been considered undervalued for tax purposes.

Together, these changes mean that wealth tax now affects a broader group of people than before, especially homeowners in major cities with little or no mortgage debt.

Before looking at who is affected and why, it helps to understand how Norway’s wealth tax works in principle.

A Tax on Global Assets

Norway uses a broad tax base to fund public services such as healthcare, education, infrastructure, and pensions.

Some taxes are designed to shape behavior, such as incentives for electric vehicles. Others, including income tax and social security contributions, are deducted directly from wages or paid in advance by the self-employed.

What sets Norway apart from many other countries is its wealth tax. In addition to income tax, individuals with sufficient assets must pay an annual tax on their net worth.

This is particularly relevant for business owners and investors who may hold large asset values while drawing relatively modest salaries. Wealth tax ensures that people with significant capital contribute to public finances even if their taxable income is low.

Crucially, the tax applies to global assets. If you are tax resident in Norway, your worldwide wealth is included, regardless of whether assets are held domestically or abroad.

For those with substantial wealth, the only way to fully avoid the tax is to leave Norway and become tax resident elsewhere, a decision that has prompted some high-profile relocations in recent years.

How Much is Norway’s Wealth Tax?

For the 2026 tax year, Norway’s wealth tax is levied at 1 percent on net assets above NOK 1.9 million. This threshold was increased from NOK 1.76 million in 2025.

In practical terms, this means that someone with net assets of NOK 2.5 million pays wealth tax on NOK 600,000, not on the full amount.

Of the 1 percent tax, 0.65 percent goes to the state and 0.35 percent goes to the municipality in which the taxpayer lives. This balance has shifted in recent years in favour of the state. Just a few years ago, municipalities received the larger share.

For very high net worth individuals, the marginal rate increases slightly. When net wealth exceeds NOK 21.5 million, an additional 0.1 percent applies, with the extra revenue going entirely to the state.

How Net Wealth is Calculated

Net wealth is calculated as the total value of assets minus total debt. Mortgages, personal loans, and other liabilities are deducted in full, which means highly leveraged homeowners often fall below the wealth tax threshold even if they live in expensive properties.

Housing, however, is treated differently from most other assets, and this is where recent changes have had the greatest impact.

For wealth tax purposes, primary residences are not taxed at full market value. Instead, a discounted valuation is used, based on an estimated market value calculated by the Tax Administration.

Until 2021, this system was relatively simple. Primary homes were valued at 25 percent of estimated market value, regardless of how expensive they were. This meant that even very high-value homes often generated limited wealth tax liability.

That changed from the 2022 tax year onward.

Step Changes for High-Value Homes

From 2022, Norway introduced step changes in how expensive primary residences are valued for wealth tax purposes.

The first NOK 10 million of a primary home’s estimated market value is still valued at 25 percent. However, any value above NOK 10 million is now assessed at a much higher rate.

For the 2022 tax year, this higher portion was valued at 50 percent. From the 2023 tax year onward, it increased again to 70 percent, where it remains in 2026.

This means that the wealth tax base for expensive homes has increased dramatically in just a few years. Compared to the pre-2022 system, the taxable value of high-end properties has almost tripled.

Secondary homes, meaning properties other than a primary residence or holiday home, are treated even more strictly. Since 2023, they have been valued at 100 percent of estimated or documented market value for wealth tax purposes.

A New Valuation Model From 2026

On top of these step changes, a new national valuation model is being introduced from the 2026 tax year.

Developed using nationwide housing transaction data, the model uses property characteristics such as location, size, type, and age, alongside modern statistical techniques and machine learning, to estimate market values more accurately than before.

The stated aim is to reduce systematic undervaluation, particularly for high-end properties in major cities, while also improving accuracy at the lower end of the market.

According to government estimates, roughly the same number of homes will see reduced valuations as increased ones. However, because expensive homes have historically been undervalued, the total taxable value of housing is expected to rise slightly overall.

Taxpayers can still challenge the valuation if they believe it does not reflect their home’s true market value.

Norway Wealth Tax Example

Confused? I’m not surprised! Let’s take a look at an example to help explain how wealth tax in Norway works.

Say you own a house worth NOK 6 million, with additional assets worth NOK 1 million. Your house is paid off in full, and you have no other debt. This would mean a net wealth of NOK 7 million.

However, as explained above, the property value is calculated at NOK 1.5 million for the purposes of the wealth tax. This assumes it's your primary dwelling and you don't own any other property, including overseas.

In this case, your taxable net wealth would be NOK 2.5 million. This would result in a wealth tax bill of just NOK 6,000 in addition to your regular income taxes.

For owners of more expensive, mortgage-free homes, particularly in Oslo and other large cities, the numbers rise much more quickly due to the higher property valuation rate above NOK 10 million.

The Story of Northern Norway's ‘Tax Haven’

The municipality of Bø i Vesterålen drew national and international attention when it reduced its municipal share of the wealth tax in an attempt to attract high-net-worth residents.

Some media dubbed it the “Monaco of Norway,” but the reality proved more complicated. Norway’s tax equalization system meant the municipality retained far less additional revenue than expected.

Elsewhere in Northern Norway, residents of Finnmark and parts of Troms benefit from special income tax deductions, but wealth tax still applies at the standard national rates.

Why is the Wealth Tax Controversial in Norway?

Critics argue that wealth tax is unfair because it applies to unrealized assets, such as shares that have not been sold and may fluctuate in value. Others claim it discourages investment in Norwegian businesses and encourages capital flight.

Supporters see it as an important tool for redistribution in a country with relatively low income inequality but high asset concentration.

The way assets are valued adds another layer of controversy. Some items, such as artwork below certain thresholds, are excluded entirely, while housing has historically benefited from favorable treatment that is now being scaled back.

Politically, wealth tax sits at the centre of Norway’s political divide, with parties on the right pushing for reductions or abolition and parties on the left defending it as a cornerstone of the tax system.

How to Reduce Wealth Tax in Norway

For those affected, there are legal ways to reduce exposure.

Taking on debt reduces net wealth directly. Pension savings held in approved schemes are excluded from the wealth tax base. Asset allocation also matters, as primary residences and some other assets continue to be taxed below full market value.

As valuation rules tighten and market values are reassessed, wealth tax is likely to affect more ordinary homeowners than before, particularly older residents living in fully paid-off homes.

Whether this represents a fair adjustment or an overreach remains a matter of political debate. It's a debate that is unlikely to go away anytime soon, as Norway continues to balance taxation, investment, and economic competitiveness.

What do you think of Norway’s wealth tax? Is it a fairer way to redistribute income, or a government tax grab? Let us know in the comments.