The PAYE scheme (Pay As You Earn) is a simplified tax scheme for some foreign workers in Norway. Instead of the ordinary progressive tax, your employer withholds a flat percentage of your salary, and you do not have to file a Norwegian tax return.
PAYE rates 2026
| Situation | Rate |
|---|---|
| Standard PAYE rate (incl. social security) | 25% |
| Exempt from Norwegian social security | 17.4% |
The tax is a final tax: there are no deductions, and no tax assessment afterwards.
Who can use the PAYE scheme?
According to the Norwegian Tax Administration (Skatteetaten), PAYE can apply if you:
- are not tax resident in Norway, for example because you stay less than 183 days in a 12-month period (or 270 days in a 36-month period), or
- are in your first year of tax residence in Norway,
- and expect to earn less than NOK 725,050 in 2026 (NOK 697,150 in 2025).
PAYE does not fit if you earn more than the limit, have been tax resident for more than a year, or have certain other taxable income, such as some benefits from NAV. The scheme is voluntary, and you can opt out and be taxed under the ordinary rules instead.
PAYE or ordinary tax – which is cheaper?
The table compares 25% PAYE with the ordinary 2026 rules for someone who gets the full standard deductions (minimum deduction and personal allowance). If you are not tax resident, you may only get part of the personal allowance under the ordinary rules, so check your own case.
| Annual salary | PAYE 25% | Ordinary rules |
|---|---|---|
| NOK 300,000 | NOK 75,000 | NOK 43,804 |
| NOK 400,000 | NOK 100,000 | NOK 76,983 |
| NOK 500,000 | NOK 125,000 | NOK 110,583 |
| NOK 600,000 | NOK 150,000 | NOK 144,183 |
| NOK 700,000 | NOK 175,000 | NOK 177,783 |
With the full standard deductions, the ordinary rules give lower tax for most incomes under the PAYE limit. PAYE is simpler, however, and can be the better choice if you only qualify for a reduced personal allowance or work in Norway for a short period.
How to get a tax deduction card
You need a tax deduction card (skattekort) before you start working. Without one, your employer must withhold 50% tax. Foreign workers apply through Skatteetaten, usually after an ID check. The card tells your employer whether to use PAYE or ordinary withholding.
Calculate your salary after tax
Under the ordinary rules, use our Norway tax calculator to see your take-home pay per year and per month. For official and binding information, see Skatteetaten: PAYE for foreign workers.