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Starting in 2025, individuals in Norway will be able to earn up to 100,000 NOK without paying any Personal Income Tax. The government's decision aims to support young people and students working part-time.
Finance Minister Trygve Slagsvold Vedum (Sp) and Minister of Employment and Social Inclusion Tonje Brenna (Ap) have announced new changes to the 2025 budget, including an increase in the Tax-Free Allowance.
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“We want young people to be able to earn up to 100,000 NOK without being burdened by taxes. Therefore, we are raising the Tax-Free Allowance from 70,000 NOK to 100,000 NOK. This means that more young people will be able to work without paying any taxes,” explained Trygve Slagsvold Vedum (Sp) in an interview with NRK.
The student association has welcomed these changes. Many students emphasize that income from part-time work is absolutely essential for them.
According to newspaper VG, the new Tax-Free Allowance Limit of 100,000 NOK represents an increase of 30,000 NOK compared to the previous limit of 70,000 NOK.
The proposed changes are expected to cost the government around 515 million NOK and aim to make part-time work more attractive for young people who are also studying.
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“We want to make part-time work more appealing to young people. This is particularly important in the service sector, such as shops, restaurants, and other places where young people often start their careers”, Vedum emphasized.
The increase in the tax-free allowance will also impact the tax burden for individuals earning between 100,000 and 145,000 NOK, as the social security contribution will also be lower.
Finance Minister Trygve Slagsvold Vedum (Sp) expressed hope that the new tax limits will encourage more young people to work.
