Norway's Wealth Tax, Explained
One of the last net wealth taxes in the rich world — how it works, and the fight over who's leaving because of it.
Most rich countries scrapped their wealth taxes years ago. Norway kept its. Every year, Norwegians pay tax not only on what they earn but on what they own above a threshold — and the policy has become one of the country’s loudest political fights, complete with billionaires packing up for Switzerland. Here is how formuesskatt actually works, and what the exodus story does and doesn’t show.
~1.1%
top annual rate on net wealth
NOK 1.9m
tax-free threshold (single, 2026)
3 of ~38
OECD countries still levying a net wealth tax
How the tax is built
Wealth tax applies to your net wealth — assets minus debt — above a tax-free allowance. For the 2026 income year that threshold is NOK 1.9 million for an individual and NOK 3.8 million for a jointly assessed couple. Above it, the rate comes in two layers that stack:
| Component | Rate | Applies to |
|---|---|---|
| Municipal portion | 0.35% | Net wealth above the threshold |
| State portion (lower band) | 0.65% | Up to ~NOK 21.5m |
| State portion (upper band) | 0.75% | Above ~NOK 21.5m |
| Combined top rate | ≈ 1.1% | Wealth above ~NOK 21.5m |
It isn’t just what you own — it’s what the tax code decides your things are worth.
The exodus — and the argument about it
This is where it gets heated. After Norway raised wealth and dividend taxes, an estimated 300-plus multimillionaires and billionaires relocated abroad, many to Switzerland, including some of the country’s wealthiest people. To critics, it is a clean cautionary tale: tax capital hard enough and it walks. One widely-cited estimate claimed a hike expected to raise a modest sum instead pushed tens of billions of kroner in wealth out of the country.
The counter-case, made by Norwegian economists, is that the departures coincided with a broader tightening — dividend and capital-gains rates rose too — so pinning it all on the wealth tax oversimplifies. And the inconvenient fact for the pure-exodus narrative: wealth-tax revenue kept climbing, from roughly NOK 27 billion in 2022 to around NOK 34 billion in 2025. Both things can be true — some rich people left, and the tax still collected more. Where you land on it usually says more about your economics than about Norway.
Frequently asked questions
What is Norway’s wealth tax rate?+
Wealth tax (formuesskatt) is charged on net wealth above the threshold. A municipal portion of 0.35% plus a state portion of 0.65% gives a combined 1.0%, rising to a 1.1% top rate on net wealth above about NOK 21.5 million.
What is the wealth tax threshold in Norway?+
For the 2026 income year the tax-free allowance (bunnfradrag) is NOK 1.9 million for a single person and NOK 3.8 million for a jointly assessed couple. (For the 2025 income year filed in 2026 it was NOK 1.76m / NOK 3.52m.)
How is property valued for wealth tax?+
Your primary home is valued at just 25% of its estimated market value on the first NOK 10 million (70% above that). Secondary homes are valued at 100%. Listed shares and business assets get a 20% valuation discount (valued at 80%), while bank deposits count at full value.
Why did wealthy Norwegians leave the country?+
After wealth and dividend taxes rose, an estimated 300+ multimillionaires and billionaires relocated, many to Switzerland — including some of the country’s richest individuals. Critics call it a tax-driven exodus; economists note broader dividend and capital-gains increases also played a role, and wealth-tax revenue has actually kept rising.
Do many countries still have a wealth tax?+
No. Norway is one of only a handful of OECD countries that still levy an annual net wealth tax, alongside Spain and Switzerland. Most abolished theirs decades ago.
The bigger picture
Norway’s wealth tax is a live experiment in something most of the rich world abandoned: taxing stock, not just flow. It funds a lot of what makes the country work — the same welfare machinery behind its parental leave and sick pay — while provoking a genuine debate about capital flight. For how it fits into the wider economy, see Norway’s largest industries and the oil fund that underwrites so much of it.
General information, not tax or financial advice. Rates and thresholds change annually — verify current figures with Skatteetaten (the Norwegian Tax Administration) for your own situation.
About the Author
Sean Percival is an American venture capitalist and author living in Norway. After failing spectacularly to expand a Silicon Valley venture fund into the Norwegian market, he collected his lessons learned into this guide to help others succeed where he initially stumbled.
Read more about Sean →