Norway Wealth Tax Guide (Formuesskatt)
Norway's wealth tax (formuesskatt) is one of the few remaining net wealth taxes in the OECD. It is levied at a combined municipal and state rate of 0.45% (0.30% municipal + 0.15% state) on net assets exceeding NOK 1.7 million per individual. Primary residences are valued at 25% of market value (75% discount), secondary homes at 90% (10% discount), and listed shares at the lower of year-end and average trading value. All amounts in NOK.
Norway's formuesskatt (wealth tax) is an annual tax on net wealth (total assets minus total debt), applied at the individual taxpayer level. It is one of the highest-yielding wealth taxes globally and a perennial topic of political debate. The tax is self-assessed through the annual tax return (skattemelding) and collected alongside income tax. Married couples are assessed jointly for wealth tax purposes. For related guidance, see our Personal Tax Guide →, Property Tax Guide →, and Investment Income Guide →.
Wealth Tax Rates — 0.45% Combined
- Municipal component: 0.30% of net taxable wealth. Set by each municipality within a narrow band — in practice, almost all municipalities apply 0.30%. The rate applies to the portion of net wealth exceeding the threshold.
- State component: 0.15% of net taxable wealth. Set nationally by the Storting (Norwegian parliament). This component was previously 0.15% above NOK 1.7 million, with an additional 0.15% (step-up) above NOK 20 million — as of 2026, this step-up has been debated but remains for high net worth individuals (effective additional rate of 0.15% above NOK 20 million in some proposals).
- Combined effective rate: The minimum combined rate is 0.45% on net taxable wealth exceeding the threshold. For very high net worth individuals (net wealth above approximately NOK 20 million), an additional step-up may apply, bringing the marginal rate to 0.60% or higher depending on legislative changes.
- Threshold (bunnfradrag): Net wealth below NOK 1.7 million per individual is exempt from wealth tax. For married couples, this means the first NOK 3.4 million of joint net wealth is exempt (each spouse gets their own 1.7M allowance).
Valuation Rules — What Is Included and How It Is Valued
- Bank deposits and cash: Valued at face value — the full balance in NOK. Foreign currency is translated at the year-end exchange rate.
- Listed shares and ETFs: Valued at the lower of the year-end market price (31 December) and the average trading price in the last quarter. This rule provides a beneficial valuation for volatile stocks. Norwegian listed shares are typically valued at approximately 90–100% of market value after applying this formula.
- Unlisted shares: Valued at estimated market value based on the company's net assets, earnings, and dividend-paying capacity. Skatteetaten publishes simplified valuation guidelines for small businesses — the "forenklet aksjeverdi" method values shares at approximately the company's net book equity with adjustments. Unlisted shares in operating companies are typically valued below their intrinsic value due to illiquidity discounts applied by Skatteetaten (approximately 70–85% of net asset value in practice).
- Primary residence (bolig): Valued at approximately 25% of estimated market value (a 75% discount). The valuation is based on the municipal property valuation (formuesverdi) which is intentionally set well below market value. The discount for primary residences is the most significant wealth tax relief — a home worth NOK 10 million is included in wealth at only NOK 2.5 million.
- Secondary homes (hytter, fritidseiendommer): Valued at approximately 90% of estimated market value (a 10% discount). The higher valuation for secondary properties reflects their nature as investment/luxury assets rather than primary dwellings.
- Debts (gjeld): All debts are fully deductible at face value, including mortgage debt, student loans, credit card balances, personal loans, and margin loans. Since primary residences are valued at only 25% of market value but mortgage debt is fully deductible, homeowners with mortgages often have low or zero net wealth tax.
Planning and Mitigation
- Mortgage optimisation: Because mortgage debt is fully deductible for wealth tax but the corresponding home asset is only 25% included, increasing your mortgage (within affordability) and investing the proceeds in financial assets reduces net wealth tax. This leverage effect is a common wealth tax planning strategy in Norway.
- Business assets: Shares in unlisted operating companies benefit from a partial discount — only a portion of the share value is included (approximately 70–85% depending on the company's asset composition). Operating business assets are valued at a discount to encourage business ownership. The rules have been tightened to prevent inclusion of passive investment assets within business vehicles.
- Gifting (gaveoverføring): Gifting assets during lifetime can reduce the donor's wealth tax base. However, gift tax was abolished in 2014 — the recipient may face capital gains tax if the donor had unrealised gains. See our Inheritance and Gift Guide →.
- Liquidity management: For taxpayers with significant illiquid assets (e.g., large shareholdings in operating companies), the wealth tax can create a liquidity squeeze. Business owners often retain earnings or take dividends specifically to fund the annual wealth tax liability.
For eiendomsskatt (municipal property tax) on real estate, see our Property Tax Guide →. For the taxation of dividends and interest, see our Investment Income Guide →.