Most new foreign workers are placed in Norway’s PAYE scheme when they apply for a tax deduction card. PAYE is designed to be simple: the employer deducts a fixed percentage from salary, and there is normally no tax return or later tax assessment for that income.
Simple does not automatically mean cheapest. Ordinary taxation uses progressive rates and allows eligible deductions, so the better result depends on the whole year’s income and circumstances.
Figures and rules were checked on 7 September 2026. Sources: Skatteetaten — PAYE for foreign workers; Skatteetaten — applying for a foreign employee tax card; Skatteetaten — foreign employee overview.
The 2026 PAYE rules at a glance
Under PAYE, salary is normally taxed at 25 per cent. If you are exempt from Norwegian national insurance contributions, the 2026 rate is 17.4 per cent.
The 2026 income ceiling is NOK 725,050. You cannot remain in PAYE if your relevant annual income exceeds the threshold or if you have disqualifying income, such as certain NAV benefits, Norwegian business income or capital income above the permitted amount.
PAYE is available for short work stays and can apply in the first year in which you become tax resident. Tax residence is a separate concept from registration in the National Population Register.
What ordinary taxation changes
Under ordinary rules, the tax deduction from each salary payment is only a prepayment. The following year you receive a tax return, check the information and submit it. The later tax assessment shows whether you paid too much or too little.
The rate varies with income, and eligible deductions can reduce taxable income. Those may include certain interest and commuting expenses. PAYE does not allow deductions.
Use Skatteetaten’s calculator to compare both systems with your expected full year income. A percentage comparison that ignores deductions, partial year income and other taxable items can be misleading.
You can opt out, but the choice is one way for that year
You may opt out when applying for the tax card or later. Once you choose ordinary taxation for an income year, you cannot rejoin PAYE for that same year.
Skatteetaten allows opting out until 31 December, three years after the income year. That later correction can be useful, but it is better to estimate carefully before the first tax card if you already know PAYE will not fit.
Only you can opt out. An employer may apply for your tax card, but cannot make this choice on your behalf.
Get the tax card before salary is paid
Everyone working in Norway generally needs a tax deduction card. Your employer retrieves it electronically. Without one, the employer normally has to deduct 50 per cent from salary until a card is available.
If you do not yet have a national identity number or D number, the tax card process can include an ID check and the request for a D number. The application is normally processed within five working days after the required information and identity check are complete.
The right sequence is therefore: confirm your employment details, apply for the tax card, compare PAYE with ordinary taxation and update the card if income changes. The identification number guide explains the number behind the process, while the employment rights guide explains what to check in the job itself.